Equity and growth are central concerns for development. They are often treated as separate questions, both in ecomic and social analysis and development policy. This separation is neither good theory r good practice. This book examines the relationship between equity and growth in Mexico. The central thesis is that Mexico's poor growth performance of the last twenty five years is intimately linked to inequity. Specific inequalities in power, wealth, and status have created and sustained ecomic institutions and polices that both tend to perpetuate these inequalities and are sources of inefficiencies and lack of dynamism in the ecomy. No Growth without Equity? analyzes this thesis at two levels: first, exploring the links between inequality, interests, and ecomic growth; second, providing specific examples as to how rent-seeking behavior in key sectors of Mexico's ecomy produce inefficiencies that are a source of low growth and income concentration. Mexico's growth problem is unlikely to be solved if these underlying inequalities are t tackled; this has large implications for policy design.
MICHAEL WALTON is Visiting Senior Fellow, Centre for Policy Research, Delhi, and a Lecturer in International Development at Harvard University's Kennedy School of Government SANTIAGO LEVY is Vice President for Sectors and Chief Economist for the Inter-American Development Bank. He was General Director of the Instituto Mexicano del Seguro Social from 2000 to 2005