Inequalities and Growth in the Southern African Customs Union (SACU) Region
International Monetary Fund, Dec 10, 2012 - Business & Economics - 22 pages
This paper applies the work of Berg and Ostry (2011) to the SACU region, to identify how inequalities have played a role in growth in each of these countries, and elaborates policy options to mitigate the effects of inequalities and foster growth. Lower income inequalities could lead to significant gains, as SACU countries could almost double the duration of their growth periods, with much lower inequalities. While reducing inequalities may be desirable, the design of policies to achieve such objective is not trivial. Policies targeting income inequalities at the sources are expected to be the most effective to reduce inequalities and promote growth. However, direct redistribution, if carefully crafted can also be very effective in reducing inequalities while limiting its potentially negative impact on growth.
What people are saying - Write a review
We haven't found any reviews in the usual places.
Other editions - View all
2010 Minium spell 6.0 and authors Apartheid autocracy Available Bénabou benefits Berg and Ostry capita growth carefully crafted comparative advantages Customs Union Dashed lines duration of growth GDP per capita Gini coefficient growth period Growth Spell Duration growth spell periods growth spell vulnerabilities hazard ratio high income inequalities human capital investment IMF Staff computations impact on growth income per capita inequalities and foster inequalities and growth inequalities and promote INTERNATIONAL MONETARY FUND investment in human lines are downbreaks lines are upbreaks lower income inequalities market failures measures Minium spell period negative impact overall p-value p-value=25 Source Penn World Tables percent percentile Piketty political Polity IV potential gains poverty Pritchett private sector development profitability of human Promoting human capital Reducing income inequalities reducing inequalities Review of Economic SACU countries SACU region Saint Paul significant smaller SACU members Solid lines South Africa spell ending trade liberalization typically World Bank World Tables 6.0