2006 World Development Report (Equity and Development)

Author: World Bank, translated by Institute of Macroeconomic Research, Chinese Academy of Sciences & Tsinghua University
Publisher:
Publish Date: 2006-02-01
Features: The unequal outcomes in income, health, and education are a shocking reality that has long existed in many developing countries. These inequalities in outcomes stem from inequalities in opportunity, and addressing these inequalities has both intrinsic and instrumental reasons. Inequalities in opportunity are often accompanied by significant differences in influence, power, and social status (at both individual and group levels), making them tend to persist. Since unfairness leads to inefficient resource allocation and reduces institutional effectiveness, it is harmful to long-term development. Therefore, it is necessary to take public action to promote fairness and pursue equality, provided that such action recognizes the importance of individual freedom and the role of markets in resource allocation. The 2006 World Development Report: Equity and Development provides evidence of inequalities in opportunity within and between countries and explains how these inequalities undermine development. The report advocates for explicitly considering equity factors when setting development priorities: public action should focus on providing more opportunities to those who lack resources, voice, and capacity in the absence of policy intervention. Domestically, the report argues for the need to invest in people, expand access to justice, land, and infrastructure, and promote market fairness. Internationally, the report discusses the functioning of global markets and the rules governing their operation, complemented by aid to help poor countries and populations improve their endowments. The 2006 World Development Report: Equity and Development draws on 60 years of World Bank development experience and is a must-read to understand how increasing equity can reduce poverty, promote economic growth, advance development processes, and provide more opportunities for the poorest groups in society.