Microsoft co-owner Paul Allen. And the North-South gap is worsening. There is high inequality between and within nations, and it is growing fast. There is not necessarily a trade-off between equity and growth. Both can and should go together.
Governments can do much more to promote growth with equity, and equity with growth.
To do so, there should be higher government expenditure on social services, as well as better quality in this expenditure. However there are disturbing signs at the national level that there is lower social expenditure in many countries due to debt and structural adjustment. The workshop also concluded that at international level, globalisation is accompanied by polarisation between rich and poor, as well as marginalisation of the poor. These trends are likely to get worse with the future workings of the world trade system under the World Trade Organisation, as strong countries are able to take advantage of liberalisation whilst the weaker countries may be threatened by cheaper imports and by more efficient foreign companies. There is a need to learn from some elements of the experiences of those countries in East Asia that have succeeded to attain high growth, together with a good measure of social development and equity.