Download - Reduced inequalities
Reduced Inequalities
By: Muhammad Adnan Ejaz
Outline
Definition
Types
Inequality in the Headlines
Some Facts and Figures
How to reduce Inequality
Definition
Social inequality is the existence of unequal opportunities and rewards for different social positions or statuses within a group or society.
Inequality is the Problem: What’s Our Response?
Types
Social Inequalities:
Political Inequality
Income and wealth inequality
Inequality of opportunity
Treatment and responsibility
Inequality of membership
Some other types:
Gender inequality
Racial and Ethnic inequality
Age Inequality
Inequalities in Health
Types (some other types…)
Between individuals (Global)
Between Countries
Within Countries
Inequality in the Headlines
Facts and Figures
On average—and taking into account population size—income inequality increased by 11 per cent in developing countries between 1990 and 2010
A significant majority of households in developing countries—more than 75 per cent of the population—are living today in societies where income is more unequally distributed than it was in the 1990s
Evidence shows that, beyond a certain threshold, inequality harms growth and poverty reduction, the quality of relations in the public and political spheres and individuals’ sense of fulfilment and self-worth
There is nothing inevitable about growing income inequality; several countries have managed to contain or reduce income inequality while achieving strong growth performance
In a global survey conducted by UN Development Programme, policy makers from around the world acknowledged that inequality in their countries is generally high and potentially a threat to long-term social and economic development
Evidence from developing countries shows that children in the poorest 20 per cent of the populations are still up to three times more likely to die before their fifth birthday than children in the richest quintiles
Despite overall declines in maternal mortality in the majority of developing countries, women in rural areas are still up to three times more likely to die while giving birth than women living in urban centres
Global poverty concentrated in few countries
• 80% live in rural areas
• 2/3 work in agriculture
• Half are children
• Most have little or no
formal education
• Yet, regional differences
How To Reduce Inequality?
We know much about the sources of inequality by economic, race/ethnic, &
immigrant origins
Ways to reduce inequality are less well understood
We support research on programs, policies, and practices that reduce
inequality in youth outcomes
Academic, social, behavioral, and economic outcomes
Fighting poverty is an important part of reducing inequality, but not all there
is to it
We’d like to reduce inequality across the spectrum
One can “reduce inequality” by elevating those lower down or holding back
those who are on top
Only the former is of interest
How To Reduce Inequality?
“Inequality” has two meanings
Overall dispersion of an outcome
Group differences in an outcome
We’d like to reduce the first and eliminate the second
How to reduce inequality? Country perspective: common elements
Lessons from country case studies reducing inequality, poverty, and strong SP premium and growth: Brazil, Cambodia, Mali, Peru, Tanzania
a. Context can vary: NO EXCUSE FOR NOT TACKLING INEQUALITY Inequality can be reduced in countries at different stages of development, pursuing different economic strategies, facing wide-ranging circumstances
b. But some factors are common to all: GOOD POLICY CHOICES Prudent macroeconomic management, ability to deal with
external shocks, and protracted and coherent economic and social policies;
Translate economic growth into inequality reduction through labor markets (increasing job opportunities, reducing income gaps)
How to reduce inequality? Country perspective: sustaining success
c. Favorable external conditions help: cheap and abundant credit, booming trade, high commodity prices plus favorable weather conditions
d. But good luck is short lived and success under fire recently: by unsound fiscal decisions (Brazil); conflict (Mali), low productivity (Peru); unfinished reforms (Tanzania)
How to reduce inequality? Policy perspective
Report focuses on six policy areas(with good evidence, significant impacts, and little
equity-efficiency tradeoff)
early childhood development and nutritionuniversal health care
quality education conditional cash transfers
rural infrastructure investmentstaxation
And some very simple lessons:Raise productivity of the poor:
Invest in children (ECD and quality education)Invest in health (universal health care)
Invest in Infrastructure (rural roads, electrification)
Make money work for the poor (CTs and progressive taxation)
ARE THESE REDUCTIONS OF INEQUALITY ENOUGH TO END
POVERTY BY 2030 IF GLOBAL GROWTH
CONTINUES SUBDUED?
SIMULATING POVERTY BY 2030 UNDER INEQUALITY SCENARIOS AND CURRENT GLOBAL GROWTH
TO END EXTREME POVERTY
BY 2030, WE HAVE TO
REDUCE INCOME INEQUALITY
AT A FASTER PACE