Inequality and capital accumulation in peripherical capitalism

The paper argues that in developing countries the changing political and social relations so as the technical progress create a systematic tendency for a dynamic disequilibrium between consumption and investment. Under these conditions, continued growth requires a macroeconomic policy directed to increase the rate of accumulation through a reduction in the aggregate consumption of both capitalist and working classes. Politically this kind of regulatory policy should be seen as an opportunity for the working class to increase its share in the wealth ownership.

KEYWORDS:
Inequality; economic growth; effective demand; productivity