In the national context, the State must endeavour to create the preconditions for ensuring a more egalitarian economic development. Two strategic approaches are paramount: the proactive approach to preempt exclusion would seek to develop mechanisms and policies to ensure that the benefits of development would be widely shared. This requires the integration of social policy into the strategy of economic development. The second approach can be characterized as reactive. This would curb the adverse effects of exclusion and provide social safety nets. The time has come to evolve a new consensus on development, which should be concerned as much with equity as with efficiency, and as much with social progress as with economic growth. The focus must shift from economies to people, and from means to ends.
3. High income inequality translates into growth-impeding factors as it leads to political instability, uncertainty and, therefore, to less investment and slower growth.