Among several adverse implications, they can lead to a deceleration of economic growth, hamper efforts aimed at eliminating extreme poverty and hunger, and weaken bonds of solidarity at the community level. Inequalities of outcome also correlate with political capture, especially by vested interest groups. A disproportionate political influence of the rich over policymaking increases rent-seeking activities at the expense of the broader society, hence undermining the global aspiration of "leaving no one behind". The chapter presents new research on the drivers and costs of income inequality in the region.3 Owing to data constraints, the chapter primarily focuses on income inequality at the regional and country levels.