[PEN-L:5186] poverty & growth

[dhenwood@xxxxxxxxx (Doug Henwood)]

I believe someone posted a question here recently about studies of income
distirubtion & growth. This is not a study, but it is rhetoric from an
interesting source, Stanley Fischer, First Deputy Managing Director of the
IMF, in a speech in Bombay, March 27, reprinted in the IMF Survey, May 22,
1995:

   "However, both East Asia's dramatic progress over the past two decades
and further research have made it clear that there is nothing inevitable in
the relationship between growth and income distribution. What happens to
poverty and income distribution during growth is determined in large part
by policy.
   More important, the evidence suggess that rapid growth is not only
compatible with, but is likely to be enhanced by, policies that also
improve income distribution and reduce poverty. A growing body of research
indicates that the key to rapid poverty reduction is high-quality growth,
that is, sustained, broadly based growth that generates employment,
improves the quality of human capital, and is outward oriented."

By these standards, growth in the US isn't too high-quality, is it?

Anyone have any comments on Fischer's academic work? From what I've seen he
seems conservative but neither rabid and nor unintelligent. Is this fair?

Doug

--

Doug Henwood
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