PRODUCTIVITY-ENHANCING EGALITARIAN POLICIES

Post-war policies for egalitarian economic growth no longer apply. The central planning, nationalization and import-substitution models have collapsed and today's heightened international competition emphasizes productivity and competitiveness. Many hold that wage restraint and l imitation of social expenditure are necessary costs for achieving econ omic performance. The authors maintain that the choice before policy-m akers is much wider. Examining the performance of countries typifying east Asian corporatism, north European social democracy and Angle-Amer ican conservatism, they argue that incentive-compatible policies for e galitarian redistribution can attenuate many costly incentive problems and so can enhance productivity.