Income Distribution and Ineqality-Trends in Bangladesh
INTRODUCTION
The subject of economic growth and equitable distribution of income of any country is an economically important one. The fulfillment of economic development in each country is based on achieving two goals, including fairly rapid economic growth and income distribution in society. More growth and better distribution is not possible at the same time-some economist argued. So it needs to make trade-off. The issue of growth and income distribution is very much concerns to the economist and it is still a controversial issue of compatibility and non-compatibility between the goals of economic growth and income distribution. Income distribution in Bangladesh is worsening for the last two decades. The gap between the rich and poor people’s consumption changes. In this paper, it will be reviewed and explained the recent trends in income distribution in Bangladesh following the theories and as well as broader empirical evidence in the first part. Then, it will show the relationship in between these two major issues of Macroeconomics. In the second part, it will show the relationship between income distribution and growth scenario in some of developing countries. Finally, concluding remarks will be made to focus the whole idea.
Overview
The Concept of development started as economic growth. In the centre development was meant to be rapid growth of per capita income. While, in 1960s a change came when people began to raise question, where the growth itself is an adequate measure of development. And immediate concern of the time was distribution of income across the population. It was observed, from experience in a number of developing countries in the 50s and 60s, that was, although the development is taking place in quite a respectable pace in some of the countries, this growth was being accompanied by very unequal, in fact worsening income distribution. It meant, most of the benefits of the growth were going to the small number of this people and the
The subject of economic growth and equitable distribution of income of any country is an economically important one. The fulfillment of economic development in each country is based on achieving two goals, including fairly rapid economic growth and income distribution in society. More growth and better distribution is not possible at the same time-some economist argued. So it needs to make trade-off. The issue of growth and income distribution is very much concerns to the economist and it is still a controversial issue of compatibility and non-compatibility between the goals of economic growth and income distribution. Income distribution in Bangladesh is worsening for the last two decades. The gap between the rich and poor people’s consumption changes. In this paper, it will be reviewed and explained the recent trends in income distribution in Bangladesh following the theories and as well as broader empirical evidence in the first part. Then, it will show the relationship in between these two major issues of Macroeconomics. In the second part, it will show the relationship between income distribution and growth scenario in some of developing countries. Finally, concluding remarks will be made to focus the whole idea.
Overview
The Concept of development started as economic growth. In the centre development was meant to be rapid growth of per capita income. While, in 1960s a change came when people began to raise question, where the growth itself is an adequate measure of development. And immediate concern of the time was distribution of income across the population. It was observed, from experience in a number of developing countries in the 50s and 60s, that was, although the development is taking place in quite a respectable pace in some of the countries, this growth was being accompanied by very unequal, in fact worsening income distribution. It meant, most of the benefits of the growth were going to the small number of this people and the
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