From Equity to Growth: Social Discontent in Developing Countries

In many emerging economies, impressive progress in reducing poverty has been overshadowed by persistent inequality and growing frustration with political elites. This widespread social discontent has driven governments to respond with short-term policies aimed at increasing equity that run the risk of jeopardizing long-term development. Is it possible to build fairer societies without undermining economic growth?

From Equity to Growth explores this dilemma, offering new perspectives on one of the defining challenges of the era. Combining economic theory, political analysis, and real-world case studies, the book contrasts two potential outcomes. In one, poorly designed redistributive policies distort markets, weaken institutions, and trap countries in middle-income stagnation. In the other, well-crafted equity strategies boost investment, strengthen institutional trust, and spur sustainable development.

Rejecting simplistic binaries between equity and growth, the authors argue that inclusive development is not only possible but essential. They highlight specific policy choices that can reconcile social demands with macroeconomic stability, providing a road map to escape the middle-income trap without sacrificing fairness. Clear, timely, and rigorous, From Equity to Growth offers both a diagnosis of many countries’ current predicament and a hopeful vision of how to move forward.

José Antonio Ocampo is codirector of Banco de la Republica (Colombia’s central bank), professor in the School of International and Public Affairs (on leave for public service), and copresident of the Initiative for Policy Dialogue at Columbia University. His books with Columbia University Press are Growth and Policy in Developing Countries: A Structuralist Approach (2009, coauthor), Development Cooperation in Times of Crisis (2012, coedited with José Antonio Alonso), and Too Little, Too Late: The Quest to Resolve Sovereign Debt Crises (2016, also coedited with Joseph E. Stiglitz), and The Welfare State Revisited (2018).