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Review essay, ‘The 2006 World Development Report: Equity and Development’ Roemer 2007

Development must be conceived in terms of the development of human welfare rather than simply as an increase in GDP per capita. Notably, the UNDP Human Development Index, an index in which GDP per capita is averaged with measures of longevity and literacy was one of the first development indicators to take into account the idea of welfare. Similar to Amartya Sen´s idea of capabilities, the 2006 WDR is based on the idea of equal opportunity (Ronald Dworkin, G.A. Cohen, John Roemer).

The philosophical idea behind equality of opportunity is that individuals should not be held responsible for their circumstances, e.g. family background, but for their effort. That is, the definition of welfare in the 2006 WDR is a state in which individuals have equal opportunity to pursue the life of their choosing.

The Report argues that more equitable societies develop better institutions which in turn make these societies more prosperous, measured in terms of GDP. Roemer criticizes this claim arguing that maximizing equity could require substantial sacrifices in GDP per capita.

Roemer sees the 2006 World Development Report as an important contribution to the literature of development and as a significant step taken by the Bank:“The Report marks a major step forward in the discussion of poverty and development. Economists have, far too frequently, lauded themselves on their discipline’s being ‘value free’, and eschewed any justice talk in favor of efficiency talk. This is, I believe, a mistake, and the publication in question makes a strong case against that narrow view.”

John E. Roemer (2006): Review essay “The 2006 World Development Report: Equity and Development”; Journal of Economic Inequality, 2006, 4: 233-244