IMF points to problem with redistribution of incomes as high growth rates are not reducing inequality
New Delhi: The International Monetary Fund (IMF) has warned that both India and China face the social risk of growing inequality.
By implication, it is suggesting that there is a problem with the redistribution of incomes in both these economies as high economic growth rates are not reducing inequality.
In its regional economic outlook for Asia and Pacific, IMF said that Asian countries are unable to replicate the “growth with equity” miracle and pointed out that inequality has only increased in the past two and a half decades, lowering the effectiveness of growth to combat poverty and preventing the building of a substantial middle class.
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