The Negative Aspects of Socio-economic Inequalities and Mechanisms of their Regulation: Some Arguments from Developing Countries Cover Image

Negativní vlivy společensko-ekonomických nerovností a mechanismy jejich regulace: argumenty z rozvojových zemí
The Negative Aspects of Socio-economic Inequalities and Mechanisms of their Regulation: Some Arguments from Developing Countries

Author(s): Josef Novotný
Subject(s): Economy
Published by: SAV - Slovenská akadémia vied - Ekonomický ústav SAV a Prognostický ústav SAV
Keywords: socio-economic inequality; developing countries; regulation of inequality; economic growth; globalization

Summary/Abstract: The paper discusses the problem of socioeconomic inequality and its regulation in developing countries putting it into the context of international development. Firstly, we put forth some arguments why should one care about inequality dealing with the poverty-growth-inequality triangle, the inequality-on-growth effects, and the globalization-on-inequality impacts. Secondly, regarding the mechanisms of inequality regulation, we state a limited role of progressive taxation in developing countries, where most of the redistribution occurs through social spending and other welfare programmes. A scanty government budget in many poor countries needs to be supplemented with additional development resources. However, the channels of international redistribution are currently underused.

  • Issue Year: 54/2006
  • Issue No: 07
  • Page Range: 709-724
  • Page Count: 16
  • Language: Czech
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