Trade off between equity and growth

Reference no: EM1373222

For a developing country to increase, it needs capital. The major source of capital in most nations is domestic saving, but the target of stimulating domestic saving usually is in conflict with the government policies targeted at decreasing inequality in the distribution of income. Comment on this trade-off between equity and growth. How would you go about resolving the issue if you were the president of a small, poor country?

Reference no: EM1373222

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