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Expanding Unequally and Unproductively

In: Monetary Whispers Across Space

Author

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  • Iwan J. Azis

    (Cornell University, Dyson School of Applied Economics)

Abstract

As argued in the preceding chapter, interregional inequality is an important feature of any development process. The U-shape hypothesis is not always corroborated by the evidence. There is also little consensus on the causes of interregional inequality, let alone policies that could significantly affect–improve or worsen–it. In part because of these reasons, social planners and policy makers are not too willing to accept any measures to address inequality if such measures create trade-offs with aggregate indicators based on the standard macro-framework. If the proposed measures to reduce inequality make national growth slower than the target or require changes (postponement) of predetermined national projects, they are not favored and put the proposed measures on the shelf even if the repercussions of the projects will widen the development gap between regions. This could happen either because they are not aware that those national projects could have some detrimental effects or because they insist that the projects must proceed no matter what.

Suggested Citation

  • Iwan J. Azis, 2026. "Expanding Unequally and Unproductively," Springer Books, in: Monetary Whispers Across Space, chapter 0, pages 31-59, Springer.
    • Handle: RePEc:spr:sprchp:978-981-95-4625-1_3
    DOI: 10.1007/978-981-95-4625-1_3
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