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This article discusses the definition of income in studies of budget incidence and income distribution. Interest in distribution has recently revived. In developed countries there is increasing explicit concern with the size-distribution of incomes, particularly with respect to their high and low extremes. In developing economies, growth of output as the overriding goal of public policy has been subordinated to concern with the distribution of the benefits from growth, and particularly with the persistence of deep low end poverty. Since governments directly allocate anywhere from an eighth to a third of total output, increasing concern with income distribution carries with it, logically, increasing concern with the incidence of public activity in the distribution of income. As a consequence the need to estimate such incidence correctly is also increasing.

The article discusses mankind's quest for development. The efforts of man for development will shape society's values and structures. Three critical aspects of development are poverty and structural change, elements of positive international cooperation between developed and developing countries and development with national self-respect.

Analyzes the progress of technology as determinants of economic growth in developed economies, thereby providing the foundation for a philosophy of poverty. Impact of the technological progress on the changing philosophy of poverty; Outline of the traditional perspective on poverty; Establishment of level of technology with the traditional perspective on poverty.