inequality: why does it matter; how does it differ to focussing on poverty?

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Inequality: Why Does it Matter; How Does it Differ to Focussing on Poverty? Duncan Green Oxfam GB Ambedkar University November 2013

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Inequality: Why Does it Matter; How Does it Differ to Focussing on Poverty?. Duncan Green Oxfam GB Ambedkar University November 2013. What do we mean by Poverty?. Absolute v Relative income Multidimensional – narrow ( eg Human Development Index) Asking Poor People (Voices of the Poor) - PowerPoint PPT Presentation

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Page 1: Inequality: Why Does it  Matter; How  Does it Differ to Focussing on  Poverty?

Inequality: Why Does it Matter; How Does it Differ to Focussing on

Poverty?

Duncan GreenOxfam GB

Ambedkar UniversityNovember 2013

Page 2: Inequality: Why Does it  Matter; How  Does it Differ to Focussing on  Poverty?

What do we mean by Poverty?

Absolute v Relative income Multidimensional – narrow (eg Human

Development Index) Asking Poor People (Voices of the Poor) Well/ Ill being Static v Dynamic – fear of tomorrow

Page 3: Inequality: Why Does it  Matter; How  Does it Differ to Focussing on  Poverty?

What’s happening to income poverty?

Page 4: Inequality: Why Does it  Matter; How  Does it Differ to Focussing on  Poverty?

What do we mean by inequality?

Income– Opportunity: soft and hard versions– Outcomes

Multidimensional inequality Vertical v Horizontal (spatial) Intergenerational (temporal) Measurement: Gini v deciles Power

Page 5: Inequality: Why Does it  Matter; How  Does it Differ to Focussing on  Poverty?

Inequality is a rising concern

Page 6: Inequality: Why Does it  Matter; How  Does it Differ to Focussing on  Poverty?

Shared by just about everybody

IMF links to major financial crises (rich elites recycling $) and social cohesion

World Bank highlights how much harder it is to end poverty in unequal countries (eg South Africa)

Stiglitz linking to political capture and positive feedback loops from influence

Planetary boundaries and the finite cake Behavioural economics and link to well-

being

Page 7: Inequality: Why Does it  Matter; How  Does it Differ to Focussing on  Poverty?

What’s happening to global income inequality? Global Gini improving due to rise of BRICS Global extremes getting worse 100 richest people = 4x poorest 1.4bn Gini within countries mixed Deteriorating in all but 4 G20 countries But improving in many non-G20 countries,

eg in Latin America

Page 8: Inequality: Why Does it  Matter; How  Does it Differ to Focussing on  Poverty?

Globally, it’s the 2%

Page 9: Inequality: Why Does it  Matter; How  Does it Differ to Focussing on  Poverty?

G20 doing badly

Page 10: Inequality: Why Does it  Matter; How  Does it Differ to Focussing on  Poverty?

And good and bad performers converging

Page 11: Inequality: Why Does it  Matter; How  Does it Differ to Focussing on  Poverty?

Brazil v the RICS

Page 12: Inequality: Why Does it  Matter; How  Does it Differ to Focussing on  Poverty?

Brazil’s success story on inequality

Over last decade, incomes of the poorest Brazilians have risen more than x5 faster than those of the richest

Hunger ‘largely dealt with’ Cf New Deal or post War UK Women > men Blacks > whites Northeast > Southeast

Page 13: Inequality: Why Does it  Matter; How  Does it Differ to Focussing on  Poverty?

Cutting inequality needs much more than social protection Rights-based constitution Centre-left government Full employment Rising minimum wage, universal pension An integrated and effective public

administration A high level of public participation Political and economic stability

Page 14: Inequality: Why Does it  Matter; How  Does it Differ to Focussing on  Poverty?

Gabriel Palma the most interesting

Deciles tell you more than Gini (Convergence)

In all countries, deciles 5-9 have (and keep) about 50% of wealth

Rest is up for grabs between top 10% and bottom 40%

Key political question is whether middle class allies with top or bottom

Page 15: Inequality: Why Does it  Matter; How  Does it Differ to Focussing on  Poverty?

What might an NGO inequality agenda look like? Structures matter (oil v jobs) Taxation – quantity and quality Ceilings v floors (eg land) Redistribution > income (eg tertiary ed =

16% social spending in Brazil) More on attitudes and beliefs: gender, but

also caste, ethnicity, children, disability Focus on inequality between or within

countries?

Page 16: Inequality: Why Does it  Matter; How  Does it Differ to Focussing on  Poverty?
Page 17: Inequality: Why Does it  Matter; How  Does it Differ to Focussing on  Poverty?

Oxfam India on Inequality

Income Missing Jobs, Low Wages and Discrimination Education & Health Public v Private To Have or Not a Toilet About Networks and Chances Rents and Redistribution

Page 18: Inequality: Why Does it  Matter; How  Does it Differ to Focussing on  Poverty?

Thanks!