In the former case, a rise in the skilled equilibrium wage can increase incentives for private investment in education, in the latter, an increase in the unskilled equilibrium wage can increase private resources available for such investment. In addition, it is argued that full development demands that all people in a society eventually enjoy the same opportunities of superior education, and that successful development ought to mean that development be managed in such a way that income inequalities are kept as low as possible without compromising people’s incentives to invest in education. In the long run, poverty is to be eradicated as part and parcel of this development process.