A rise in living standards seems to benefit people in cities only, rather than those in rural areas. What problems can it cause? How can these problems be solved?

　　As economic development has accelerated in parts of the developing world, national GDP levels have risen simultaneously. However, GDP is not an accurate measure of how income is distributed across a country. Clearly, not everyone in the developing world has benefited from increased growth, with wealth disparities rife across many nations. This is particularly stark when making comparisons between urban and rural areas.

　　One of the biggest problems of wealth inequality is the potential for social unrest. If large sections of the population feel their needs are not being met, social turmoil becomes an ever-growing threat. This puts pressure on governments to maintain a balance between sustainable growth and maintaining domestic order. Additionally, wealth inequality can be a self-reinforcing problem. Rural parts of the country that are neglected tend to go into perpetual downward spirals, starved of opportunity and investment. Once this happens, private capital will not be invested in these areas, as entrepreneurs would reasonably conclude that such places do not have growth potential.

　　Wealth inequality is surely on of the greatest challenge facing governments and policy makers across the globe. Only a coordinated, international response to this problem will suffice. Governments must acknowledge that the private sector and the free market do not provide the most effective way to deliver opportunity and growth in some sectors. With regard to housing, infrastructure and public services, governments must be prepared to invest and deliver these essentials to the population.

　　Wealth inequality cannot be tackled by the free market: that much is clear. Thus, a more interventionist approach must be taken by governments to address this challenge. Public money must be invested in areas of greatest need and the richest in society must bear a higher tax burden.

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