The relationship between growth and poverty lies at the heart of development economics. While many see aggregate growth as both necessary and sufficient for reducing poverty, and consequently focus their efforts on achieving the desired macroeconomic outcomes, others stress that the benefits...

Inequality has risen in many countries over the last two decades, especially in the transition economies, but also in many developing and developed economies. This is disturbing since little progress can be made in poverty reduction when inequality is high and rising. Moreover, contrary to...