The Developer’s Dilemma

Abstract

Abstract This chapter pulls together the book’s chapters, each examining the developer’s dilemma or ‘Kuznetsian tension’ between structural transformation and income inequality. Developing countries seek inclusive economic growth that improves the living standards of all, especially the poor. What are the types or ‘varieties’ of structural transformation that have been experienced in developing countries? What inequality dynamics are associated with each variety of structural transformation? What policies have been utilized to manage trade-offs between structural transformation, income inequality, and inclusive growth? The different chapters discuss these questions, while employing a common analytical framework and a set of common datasets. The intellectual contribution of the book is to provide a comparative analysis of the relationship between structural transformation, income inequality, and inclusive growth; to do so empirically at regional and national levels; and to draw conclusions from the cases on the varieties of structural transformation, their inequality dynamics, and the policies have been employed to mediate the developer’s dilemma.