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Exercises · Q11

Q.Explain the growth-first versus equity-first debate in development strategy.

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A recurring debate in development planning concerns the balance between prioritising growth and prioritising equity in an economy's overall strategy.

A growth-first view holds that a country should focus primarily on maximising its overall rate of output growth, on the reasoning that a larger total output eventually provides more resources for redistribution, and that shifting resources towards redistribution too early risks slowing the very growth needed to generate those resources. This view aligns closely with growth-mediated poverty-alleviation strategies.

An equity-first (or redistribution-first) view holds that growth alone cannot reliably reduce poverty and inequality within an acceptable time frame, and argues that deliberate redistributive measures — such as land reform, progressive taxation, targeted social spending, and direct employment programmes — should accompany growth from the very beginning, rather than being postponed until growth has generated 'enough' resources. This view aligns closely with direct poverty-alleviation strategies. …

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