## Growth, Income Inequality, and Policies

## Source details

**Canonical URL:** [Growth, Income Inequality, and Policies](https://www.imf.org/-/media/files/about/infographics/growth-income-inequality-and-policies.pdf)

## Other formats

- [Markdown version](/-/media/files/about/infographics/growth-income-inequality-and-policies.pdf.md)
- [Structured JSON version](/-/media/files/about/infographics/growth-income-inequality-and-policies.pdf.json)

---

### Overview
- Despite strong growth, income inequality remains stubbornly high in Low-Income Developing Countries (LIDCs).
- No one size fits all. Policy packages can be designed to be both pro-growth and inclusive.

### Key statistics and trends
- Average GDP growth in LIDCs, 1996-13: 5%
- Slight decline in income inequality in LIDCs, 1996-13
- Average adult population with a bank account in LIDCs: 20%
- Informal sector share of jobs in LIDCs (median): 70%

### Examples of pro-growth policies/reforms
- Reduce inefficient subsidies
- Financial sector reform (Banks)
- Tax reform for financing development
- Boost efficient infrastructure investment
- Increase financial access
- Invest in agricultural infrastructure and R&D
- Increase labor mobility
- Reduce informality
- Expand social assistance (Cash Transfers)

---


_Source: https://www.imf.org/-/media/files/about/infographics/growth-income-inequality-and-policies.pdf_