Over longer horizons, reduced inequality and sustained growth may be two sides of the same coin.
The analysis calls to mind the developing country debt crises of the 1980s and the resulting “lost decade” of slow growth and painful adjustment. That experience brought home the fact that sustainable economic reform is possible only when its benefits are widely shared. In the face of the current global economic turmoil and the need for difficult economic adjustment and reform in many countries, it would be better if these lessons were remembered rather than relearned.
(Berg and Ostry 2011)