World Bank rediscovers inequality

BBC NEWS | Business | World Bank rediscovers inequality

by Steve Schifferes (BBC News economics reporter)
When the World Bank's new president, Paul Wolfowitz, presides over his first annual meeting, he will be confronted with a radical new report from his own organisation that sees ending inequality as a key to reducing poverty.
The World Bank's annual development report often sets the tone for its discussion on development issues.

And this year's report squarely confronts one of the key issues in development - the role of inequality.

The "Equity and Development" report is the first time that the World Bank has explicitly acknowledged that redistribution - as well as economic growth - is needed to end world poverty.

Reducing (inequities) may be perfectly consistent with - and perhaps even necessary for - greater efficiency and prosperity in the long-term
World Bank Development Report

The authors are careful to emphasise that they are not anti-growth, but that equity enhances the effect of growth on poverty reduction./.../