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Latin American income distribution is among the most unequal in the world. Both the poor and the wealthy have paid a price for this inequality, which is in part responsible for the regions low growth rates. The essays in this book propose new ways of reducing inequality, not by growth-inhibiting transfers and regulations, but by enhancing efficiency?eliminating consumption subsidies for the wealthy, increasing the productivity of the poor, and shifting to a more labor and skill-demanding growth path. In Beyond Tradeoffs, Latin American experts demonstrate how market-friendly measures in key policy areas can simultaneously promote greater equity and greater efficiency. By identifying win-win strategies, the authors challenge the conventional wisdom that there is always a tradeoff between these two objectives. Extensive macroeconomic reforms in the region have provided opportunities to implement such strategies across many sectors.
The volume aims at building a InchInchLatin consensusInchInch on a second round of reforms?reforms that address the urgent issue of inequality without undermining efficient growth. Contributors include Jonathan Coles, Rene Cortazar, Ricardo Hausmann, Juan Luis Londoño, Nora Lustig, Moises Naím, and Joseph Stiglitz.
Copublished with the Inter-American Development Bank
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