Addressing Inequality in South Asia

Inequality in South Asia examines the trends in multiple dimensions of inequality, analyses the drivers of inequality, and identifies policies for shared prosperity in South Asia. Part one of the book covers not only inequality of consumption, but also inequality of services and draws upon the most recent household surveys in each country to capture the trends. The South Asian experience is also compared to that of other countries. Part two focuses on the drivers of inequality, the lack of opportunity, insufficient mobility of the poor and the vulnerability of the poor to shocks which are keeping the high rates of growth being generated recently in South Asia from having a larger impact on inequality. Part three addresses policies that could lead to a more equitable path of growth.

The book highlights that because of the limited progressivity of tax systems in South Asia to address inequality, most of the public policy impact on inequality will be generated through the effect that expenditure policies have on opportunities and jobs. To ensure that growth generates more equity in the future, investment is needed in both resources to increase opportunities for more and better jobs, and management to address the variation in the quality of implementation in providing services to the poor. At the same time, social protection is needed to ensure that the health, economic, and natural disaster shocks that are so prevalent in South Asia do not make it impossible for the poor to accumulate assets and share in future prosperity.