Citing a recent report from the Commission on Growth and Development, and a new book by Oxfam’s head of research Duncan Green, Larry argues in today’s Guardian that the key to development and prosperity is an effective state, accountable to its people, which seeks to address inequality. If the ethical arguments don’t sway you, the practical ones should:

‘The lesson of the past few decades is that those countries which have ensured health and education for all, and which have actively managed the growth process – nations such as South Korea, Mauritius and Botswana – have succeeded whereas those which have seen the strength of the state sapped have struggled. The old Washington consensus notion that a ‘rising tide lifts all boats’ is no longer fashionable, even in Washington.’

In the words of the Commission on Growth and Development report:

‘Governments should seek to contain this inequality at the bottom and top end of the income spectrum. Otherwise, the economy’s progress may be jeopardised by divisive politics, protest, and even violent conflict. If the ethical case does not persuade, the pragmatic one should.’