ABSTRACT
The data that have been used by many analysts to show that the gap between rich and poor is considerably wider in the developing economies than it is in the developed ones is presented by this frequently cited study of Montek S. Ahluwalia. The study notes a number of major limitations of the data upon which this conclusion is based, but goes on to argue that these are “the only data we have” and that the conclusions drawn from such data can do more good than harm. Some critics of this view believe, however, that since large sums of development assistance funds are spent based upon the conclusions of studies such as this, faulty conclusions can do considerable harm because such funds will neither produce the desired result nor be of assistance to projects that might truly benefit from them. Moreover; entire national development plans could result in failure if such conclusions were found to be unsupported by better data or better analysis. As the chapters in Part Three will demonstrate, there is considerable controversy over both the quality of the data and the interpretations Ahluwalia has given them.
