Abstract
This paper reviews some of the major findings of recent research on income distribution in Taiwan, presents some of the policy conclusions which emerge from that analysis, and comments on the possible transferability of the lessons of the Taiwan case to other developing country situations. In particular, the paper treats the question of why the so-called inverse U-shaped or Kuznets effect was apparently avoided in Taiwan during a period 3f unusually rapid growth - as a counter-example to the dominant school of ‘trade-off pessimists’. The issue of transferability is discussed with reference to more ‘typical’ LDC conditions such as those of Colombia and the Philippines - ‘Colphil’. At a more general level, the author considers the relevant differences and similarities between Taiwan and ‘Colphil’ and the extent to which these can or cannot be overcome by policy actions.
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