Inequality and Development:

Economic growth has been  an  important motivator for individuals and policy makers to debate and  initiate policies that would  lead  to an increase in aggregate national wealth. We  find  that economists, policy makers, social scientists and  politicians are driven by  the  idea of high economic growth fo;  countries. Multilateral agencies like the World Bank  and  the International Monetary Fund  are  talking of a fast rate of economic growth so that people can improve their living standards  and make full use of  their  capabilities. However,  it  is observed that  in  spite  of  economic growth, development of all components of the economy is not taking place. We must start by understanding the terms like 'growth'  and  'development'. These terms are often used interchangeably, though  social  scientists have given  different meanings to the two terms.  

Inequality  refers  to disparities in distribution in income and economic assets of individuals or households. In an aggregative  context it may refer to disparities among nations in per capita income and standard of living. lnequality has existed always although its nature, extent and causes have been subjected to debate. The role of the government  and  government policies  in  reducing inequality  also  is  a  matter  of disagreement amongst economists.