ABSTRACT
This chapter presents a conceptual argument against the misconceived correlation between income growth and equality, or between growth and distribution. By looking at the Gini coefficient of the four East Asian economies over the decades, it will be argued that growth and equality are separate issues, and the more relevant socio-economic goal is poverty reduction. The Gini coefficient measures the degree of income inequality (the higher the Gini coefficient, the greater the degree of income inequality, or the larger the gap between rich and poor), but it is not necessarily the best measurement of distribution. Inter-personal income comparison always shows inequality, but intra-personal income comparison can reveal how the absolute income of an individual has increased and poverty has been reduced.
