ABSTRACT

This study presents one of the first attempts to apply social science statistical methodology to the problem of the internal gap between rich and poor. The portions reproduced here represent an abbreviated summary of an entire book on the subject, and the interested reader should consult the original source for details of the data and methodology. A principal finding of the study is that economic growth does lead to increasing income inequality, as was suggested in Chapters 3 and 4 by Ahluwalia and Kuznets. But Irma Adelman and Cynthia Taft Morris go beyond that finding to conclude that the poor lose in absolute terms as well. Hence, they support the old adage that “the rich get richer and the poor get poorer.” This finding is certainly controversial and has been disputed by critics. Finally; the investigation points to a number of policy instruments developing countries can employ to mitigate the impact of growth on income distribution. These conclusions are at variance with the thinking of many proponents of the dependency and world-system schools who generally see little opportunity for countries on the periphery to counteract the predominant role of systemic constraints on their development, unless they embark upon a revolutionary course.