Why is there still severe deprivation inCeara after so many years of active development eforts? Havegovernment programs been well-designed? What can be donedifferently in the future? How can a more inclusive strategybe combined with the modernization effort? This reportargues that a well-designed redistributive strategy is notonly consistent with modernization, but is an importantcomplement. Societies that effectively manage inequality andinsecurity typically have deep and broad educationalsystems, and responsive and inclusive political andinstitutional structures. These can be sources ofcompetitiveness and resilience in the global economy. Butthere is no magic solution. Success will depend on a rangeof complementary actions to tackle the various areas ofdisadvantage to create a virtuous cycle of change that isboth redistributuve and growth-oriented. In particular, thereport finds that growth alone will be a weak instrument ofpoverty decline, precisely because of the extent ofinequality. Thus the report proposes complementary effortsin four areas: achieving a more equitable pattern of incomeand job growth; continuing and deepening the effort to getequitable skills development; use of redistributuvetransfers for the poor and indigent, as a means ofcomplementing human capital development; and strengtheninginstitutional change, especially at the municipal level.
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