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International Monetary Fund. External Relations Dept.

This paper examines some dimensions of the problem of income inequality. The conventional approach to income inequality is to define the problem in purely relative terms. A familiar technique for this purpose is to measure inequality by the extent to which the income share of groups of individuals or households differs from their population share. The paper examines the problem in terms of income shares of the lowest 40 percent, the middle 40 percent, and the top 20 percent of households ordinally ranked by income.

David J. Bates and Graham F. Donaldson

Changes in the Bank Group’s development philosophy have led to a greater emphasis on lending for agricultural and rural development in the developing countries. The authors outline these changes and their effects.

Mr. Andrew M. Warner

For the latest thinking about the international financial system, monetary policy, economic development, poverty reduction, and other critical issues, subscribe to Finance & Development (F&D). This lively quarterly magazine brings you in-depth analyses of these and other subjects by the IMF’s own staff as well as by prominent international experts. Articles are written for lay readers who want to enrich their understanding of the workings of the global economy and the policies and activities of the IMF.

Jeremy warford and Zeinab Partow

For the latest thinking about the international financial system, monetary policy, economic development, poverty reduction, and other critical issues, subscribe to Finance & Development (F&D). This lively quarterly magazine brings you in-depth analyses of these and other subjects by the IMF’s own staff as well as by prominent international experts. Articles are written for lay readers who want to enrich their understanding of the workings of the global economy and the policies and activities of the IMF.

Francisco Ceron, Santacruz Pasto,, Anthony R. Perram, Arlington, Virginia,, Gunter Schramm, Jeremy J. Warford,, Yusuf J. Ahmad,, Salah El Serafy,, Ernst Lutz, George Ledec, Robert Goodland, Wans Gregersen,, Dennis J. Mahar, Daniel W. Bromley, and Michael M. Cernea

For the latest thinking about the international financial system, monetary policy, economic development, poverty reduction, and other critical issues, subscribe to Finance & Development (F&D). This lively quarterly magazine brings you in-depth analyses of these and other subjects by the IMF’s own staff as well as by prominent international experts. Articles are written for lay readers who want to enrich their understanding of the workings of the global economy and the policies and activities of the IMF.