Economic Growth and
Redistributive Justice
Economic growth and Redistributive justice
• An increase in the amount of goods and
services produced per head of the population
over a period of time.
• Economic growth can be measured through
an increase in GDP per capita income
• “Economic growth is the sustained secular
increase in total national income or national
income per head of population” (Phyllis
Deane).
• “Economic growth means more output. More
output may be the result of more input and
or greater efficiency and productivity”
(Kindleberger and Herrick).
• According to Amartya Sen “Economic growth is
one aspect of the process of economic
development.”
• Economic growth represents quantitative change
of economic system and determines the increasing
of country’s economic power, production level and
possibility of the national economy to meet the
growing needs for goods and services.
• Growth is a necessary condition for economic
development but it is not a sufficient condition.
Benefits of Growth
1. Growth move out poverty
• Economic growth is the most powerful
instrument for reducing poverty
• Growth can generate virtuous circle
• Research on developing countries finds strong
evidence that rapid and sustained growth is
the single most important way to reduce
poverty
• Example- China, India, Mozambique
2. Growth creates jobs
Economic growth generates job opportunities
and hence stronger demand for labour, the
main and often the sole asset of the poor
In turn increasing employment has been
crucial in delivering higher growth
3. Growth drives human development
• Positive link between economic growth and
broader measure of human development
• Growth is not fundamentally about materialism
• Growth generates virtuous circle of prosperity
and opportunity
• Weak economic growth implies vicious circle in
which poor human development contributes to
economic decline, leading to further
deterioration in human development
Redistributive justice
• Redistributive justice is concerned with the fair
allocation of goods and services
• A society in which inequalities in outcome do not
arise would be considered a society guided by the
principles of distributive justice.
• The concept includes the available quantities of
goods, the process by which goods are to be
distributed, and the resulting allocation of the
goods to the members of the society.
Welfare-Based Principles of Distributive Justice
• Distributive justice takes into account
the equitable distribution of many aspects.
• Other benefits and burdens that are
considered include potential income and
economic wealth, taxation, work obligations,
political power, education, housing,
healthcare, military service, and community
involvement.
Equity and Equality
Ways for redistribution
1. Identification of target groups for
redistribution of goods and services
2. Progressive tax policy,
3. social security policy,
4. Welfare policy
5. Inclusive policy

1.2 Economic_Growth_and_Redistributive_Justice.pptx

  • 1.
  • 2.
    Economic growth andRedistributive justice • An increase in the amount of goods and services produced per head of the population over a period of time. • Economic growth can be measured through an increase in GDP per capita income
  • 3.
    • “Economic growthis the sustained secular increase in total national income or national income per head of population” (Phyllis Deane). • “Economic growth means more output. More output may be the result of more input and or greater efficiency and productivity” (Kindleberger and Herrick).
  • 4.
    • According toAmartya Sen “Economic growth is one aspect of the process of economic development.” • Economic growth represents quantitative change of economic system and determines the increasing of country’s economic power, production level and possibility of the national economy to meet the growing needs for goods and services. • Growth is a necessary condition for economic development but it is not a sufficient condition.
  • 5.
    Benefits of Growth 1.Growth move out poverty • Economic growth is the most powerful instrument for reducing poverty • Growth can generate virtuous circle • Research on developing countries finds strong evidence that rapid and sustained growth is the single most important way to reduce poverty • Example- China, India, Mozambique
  • 6.
    2. Growth createsjobs Economic growth generates job opportunities and hence stronger demand for labour, the main and often the sole asset of the poor In turn increasing employment has been crucial in delivering higher growth
  • 7.
    3. Growth driveshuman development • Positive link between economic growth and broader measure of human development • Growth is not fundamentally about materialism • Growth generates virtuous circle of prosperity and opportunity • Weak economic growth implies vicious circle in which poor human development contributes to economic decline, leading to further deterioration in human development
  • 8.
    Redistributive justice • Redistributivejustice is concerned with the fair allocation of goods and services • A society in which inequalities in outcome do not arise would be considered a society guided by the principles of distributive justice. • The concept includes the available quantities of goods, the process by which goods are to be distributed, and the resulting allocation of the goods to the members of the society.
  • 9.
    Welfare-Based Principles ofDistributive Justice • Distributive justice takes into account the equitable distribution of many aspects. • Other benefits and burdens that are considered include potential income and economic wealth, taxation, work obligations, political power, education, housing, healthcare, military service, and community involvement.
  • 10.
  • 11.
    Ways for redistribution 1.Identification of target groups for redistribution of goods and services 2. Progressive tax policy, 3. social security policy, 4. Welfare policy 5. Inclusive policy