Against this backdrop, this Report addresses an old question: whether rising (or high) income inequality is an inevitable outcome - or a necessary factor - of economic development, or whether it is possible, and even desirable, to reduce income inequality, in order to achieve more inclusive growth as well as to overcome the present economic challenges and create the conditions necessary for a more sustainable and rapid development process in the long run. In contemporary debates, a distinction is often made betw'een equality before the law (or formal equality), and equality in terms of income and wealth. The latter form of equality is affected by ownership structures as well as by market processes, social stratification and political systems which may deny tme equality of opportunities to a large segment of a society.