Growth, Reforms, and Inequality

Amiya Kumar Bagchi and Anthony P. D’Costa

in Transformation and Development

Published in print November 2012 | ISBN: 9780198082286
Published online January 2013 | e-ISBN: 9780199082377 | DOI:
Growth, Reforms, and Inequality

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This chapter addresses two main questions. First, what is the trend in inequality in India and China? Second, what additional information can be obtained by decomposing aggregate trends in terms of: (a) regional variations, and (b) the urban-rural divide? To answer these questions, income and consumption inequality in China are compared with consumption inequality in India in the post-reform period over three (roughly comparable) points in time. Based primarily on economic analysis, it is shown that both countries need to develop special, comprehensive, and timely measures sensitive to their specific contexts to tackle the various dimensions of inequality—particularly the rapidly growing urban-rural divide—in order to attain their goal of increased economic prosperity without social upheaval.

Keywords: inequality trends in India and China; post-reform period in India; income inequality comparisons; consumption inequality comparisons; economic growth; economic policy; urban-rural divide comparisons; social upheaval; growth without upheaval

Chapter.  8572 words. 

Subjects: Comparative Politics

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