Open AccessInequality in the Context Development Theories: Dependencia Theory and Washington Consensus
Author(s) -
Jorge A. Charles-Coll
Publication year - 2013
Publication title -
journal of economics and behavioral studies
Language(s) - English
Resource type - Journals
ISSN - 2220-6140
DOI - 10.22610/jebs.v5i10.442
Subject(s) - inequality , washington consensus , relevance (law) , context (archaeology) , economics , set (abstract data type) , economic inequality , positive economics , element (criminal law) , development theory , public economics , neoclassical economics , political science , economic growth , politics , law , computer science , mathematics , mathematical analysis , paleontology , biology , programming language
This paper describes the characteristics of two important development theories: The Dependencia theory and the Washington consensus as a policy guideline for promoting development, and analyzes the role that inequality plays on their postulates according to the results from the previous analysis. This theoretical exercise is intended to illustrate the relevance of issues related to inequality on any set of policies that intend to generate development and discusses the fact that inequality does matter for growth due to the fact that distributional issues are embedded in the basic principles of economic systems. Any growth promoting policy should incorporate distributional arguments as an element that generates optimal conditions for economic growth by hampering the negative effects on the economy of high income inequality levels.