Chapter 1 The problem and some theoretical background (original) (raw)

Contributions To Conflict Management, Peace Economics and Development, 2008

Abstract

We consider the well-known and painful problem of countries, mainly in the developing world, that suffer not only from low levels of economic development, but also from high levels of inequality and poverty. They struggle to solve their development problems by implementing various policies for economic growth (investing in infrastructures and education, providing incentives for capital investments, etc.), but in many cases it seems that economic growth, even when it is achieved, does not necessarily resolve the fundamental problems of poverty and unequal income distribution (Selowsky, 1981; Cardoso & Helwege, 1992).

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