Chapter 27 Chapter Summary

This chapter has sought to explain the importance of inequality in international development and how this differs from poverty. There has been growing recognition that inequality is important in low-income countries as well as in high-income countries, and it is of increasing significance in countries that have experienced rapid economic growth. Inequality, as we have seen, can be measured. The reasons why inequality matters are complex and may be more so than one might initially think. The types and levels of inequality matter, and norms of fairness and equality differ across countries or regions, as well as change over time.

In addition, diverse policies aim to address inequalities. The chapter introduced a broad notion of social policy, emphasizing that there is no right or wrong definition, and there are political reasons for adopting one or another. The way governments tax is equally important, particularly to assess the net redistributive impact of government policy. History has shown that governments over time are able to and have developed better instruments to address inequalities. But these paths and ideologies that drive social policy are diverse. Social policy analysis needs to understand the political motivations and constituencies, and the different social policy approaches that emerge from this. This chapter also explores the interplay between COVID-19, inequality, and social policy.