Income distribution policies in East Asia

This paper focuses on the important measures implemented by East Asian countries to reduce income inequality and tries to assess policy effectiveness. These policies pertain to the following activities: (1) rural development programs including land reform, (2) promotion of off-farm (or nonagricultural) activities, (3) industrial policies emphasizing labor-intensive production, (4) promotion of skill formation and schooling, (5) policies to slow population growth, (6) public welfare spending, and (7) policies to reduce inter-regional income gaps. The author concludes that East Asia has been able to grow earlier and faster than Southeast Asia where rural development has been less successful and off-farm activities minimal. In the Southeast and South Asian countries the factors opposing equalization are still powerful, and only determined implementation efforts can succeed.