As inequality involves substantial economic, social and political costs. The crucial issue of how to measure inequality has been a major challenge. Many existing literature have linked the quality of governance to poverty related crises. It unknown whether political commitment is likely to minimise or magnify the level of inequality or not.
Yes good governance can minimize inequality by providing equal opportunities to all the people living in a state. This is what socialism is all about. Inequality is not a bad thing, provided the opportunities given to everybody would be same. Not like inequality that exists in capitalist society, where all the factor of production belongs to rich, cooperates exploits the middle class worker in anyway possible. And even government make the policies which benefits cooperates.
Redistribute policy is important to the reduction of inequality, but another probably more important method is upward mobility. Then, public education plays an important role for upward mobility.
When redistributive policy was in full swing in Scandinavia during former decades,, inequality was there the least among Western countries. Now the situation in Scandinavia is changing to more inequality, as redistribution is less. If I am not correct, please, reply with statistics.
In Central and Eastern Europe now is the situation like this - where redistribution is lower, the inequality is larger, for example, in Lithuania, where redistribution is about 30 percent to GDP, the difference between highest income and lowest income deciles is 7 times - more than in many OECD countries.
Article Introducing the Investment Redistributive Incentive Model (I...
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