Poverty, inequality and development
Against the backcloth of the global financial crisis and economic recession the focus on regenerating economic growth has become a primary goal of most governments.
Across the globe there are many examples where such economic growth is being achieved. Yet this often hides the realities of the struggle that many communities face on a daily basis. Development is not merely about economic growth within a country. It is, fundamentally, about improving opportunities for the people who live there, especially for the poorest. However, in many places, growth is not currently benefiting those who need it most, but is instead concentrating wealth and power in the hands of those with access to opportunities and resources.
For example, in Paraguay, despite an impressive 13 percent growth rate and the emerging opulence of the capital Asunción, the benefits of growth are visible only in select areas of the country. Only a short distance outside the capital lay sprawling slums where the economic boom has left many behind. The country, one of the poorest and most unequal in South America, has a poverty rate over 30 percent.
Inequality has a negative impact not only on those who get left behind by growth, but also on society as a whole. Large income disparities compromise government accountability by concentrating political power in the hands of a few wealthy citizens, undermining institutions necessary for enduring economic growth
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