From Equity to Growth - (Initiative for Policy Dialogue at Columbia: Challenges in De) (Hardcover)

About the Book

From Equity to Growth presents specific policy choices that can reconcile social demands with macroeconomic stability, providing a road map to escape the middle-income trap without sacrificing fairness.

Book Synopsis

In many emerging economies, impressive progress in reducing poverty has been overshadowed by persistent inequality and growing frustration with political elites. This widespread social discontent has driven governments to respond with short-term policies aimed at increasing equity that run the risk of jeopardizing long-term development. Is it possible to build fairer societies without undermining economic growth?

From Equity to Growth explores this dilemma, offering new perspectives on one of the defining challenges of the era. Combining economic theory, political analysis, and real-world case studies, the book contrasts two potential outcomes. In one, poorly designed redistributive policies distort markets, weaken institutions, and trap countries in middle-income stagnation. In the other, well-crafted equity strategies boost investment, strengthen institutional trust, and spur sustainable development.

Rejecting simplistic binaries between equity and growth, the authors argue that inclusive development is not only possible but essential. They highlight specific policy choices that can reconcile social demands with macroeconomic stability, providing a road map to escape the middle-income trap without sacrificing fairness. Clear, timely, and rigorous, From Equity to Growth offers both a diagnosis of many countries' current predicament and a hopeful vision of how to move forward.

Review Quotes

Those of us who study and teach the economic and social evolution of Latin American countries have long been awaiting a book like this. In our region, low economic growth has coexisted with high economic inequality for centuries. There can be no disagreement about the existence of this unfortunate characteristic of our countries. The data speak for themselves. Discrepancies arise, however, regarding the causal relationship between the two problems and the policy recommendations to address them. The analyses and conclusions on this matter tend to fall into two opposing extremes, which have cyclically influenced public policies and, judging by the results, have failed. Ocampo, Malagón, and Narváez now offer us a third way that clarifies the simultaneity between low growth and inequality, as well as more promising prescriptions to overcome the Latin American trap of insufficient development. The relevance and timeliness of this work must be emphasized, especially as we mark yet another "lost decade" for Latin America.--Ernesto Zedillo Ponce de León, Yale University, director of the Center for the Study of Globalization, and president of Mexico, 1994-2000

Amid the complexities of the global political landscape and current social unrest, this book offers a timely and insightful exploration of the intricate interplay between economic growth and social well-being. Drawing on compelling empirical evidence and theoretical insights, the authors present urgently needed ideas on how to move beyond the false dichotomy between entrepreneurial activity and equity. This work, a must-read for policymakers, academics, and concerned citizens alike, provides a revealing roadmap for building a more resilient and equitable global economy.--Mariana Mazzucato, University College London, founding director of the Institute for Innovation and Public Purpose

Combining economic growth with equity is the holy grail of economic policy. As this book demonstrates, global discontent over inequality has increased even as the world has become wealthier, making the challenge more pressing than ever. The authors warn that this discontent can fuel short-term policies that undermine both growth and democracy. However, it can also serve as a wake-up call, paving the way for better policies. This insightful and useful book clarifies the choices that policymakers must make to guide us down the best path.--Dani Rodrik, Harvard University, codirector of the Reimagining the Economy Program

About the Author

José Antonio Ocampo is a professor of professional practice and codirector of the Economic and Political Development Concentration at Columbia University's School of International and Public Affairs. He previously served as United Nations undersecretary general for economic and social affairs and minister of finance of Colombia, among other prominent roles.

Jonathan Malagón is the president and CEO of the Colombian Banking and Financial Institutions Association (Asobancaria) and the former minister of housing, cities, and sanitation of Colombia. He is also an adjunct associate professor at Columbia University's School of International and Public Affairs.

Andrés Narváez is the director of economics at PRIME Business School in Bogotá and a professor of microeconomics at the National University of Colombia. He has served as advisor to Colombia's minister of housing and the president of Asobancaria.

Michelle Bachelet Jeria is the former president of Chile and former United Nations high commissioner for human rights.