The objective of this paper is to examine the trends and differences in income inequality in the high performing countries of East Asia and to identify important factors
that influenced inequality. We begin with brief discussions of early thinking about the determinants of income inequality and some of the practical difficulties encountered in measuring income inequality. We then turn to a closer examination of the East Asian experience. Taken as a group the countries of East Asia do have lower income inequality than the countries of Latin America or Africa. There is, however, wide variation.

Income inequality in Northeast Asia is very low; income inequality in Southeast Asia is similar to that found in Latin America and Africa. Moreover, the trends in inequality differ greatly from one country to the next. Even the most cursory inspection of the data suggests that income inequality is governed by exceedingly complex forces that differ greatly from country to country. Simple generalizations about the connection between
inequality and economic growth or inequality and the demographic transition are elusive. History, culture, agricultural conditions, e.g., weather and soil conditions, economic structure, development policies, and politics all play a role.

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