“Equality is good for growth” claims World Bank Advisor Thorvaldur Gylfason

News / 16.2.16

World Bank Advisor Thorvaldur Gylfason and Economics professor Xavier Cuadras discussed the scale of states, growth and the European social model at a recent seminar in Barcelona, co-organised by Fundació Josep Irla and Centre Maurits Coppieters.

The results of several studies show that smaller countries are more egalitarian and do not necessarily have tradeoffs in terms of economic growth:  “small is good for social cohesion and growth” claims professor Gylfason.

Xavier Cuadras argues that globalisation is a game changer for economic performance of small and mid-size states. Small and mid-sized states that can adapt to new international trade landscape are far better off. This seems to facilitate economic development of those less rigid and flexible.

Thorvaldur Gylfason also finds that social cohesion and equality are good for economic development. He argues that the European social model is key to promote growth and fairer societies:  “New evidence suggest that we do not have to tolerate inequalities to promote growth, rather the other way around,” he concludes.

What the full interview here: