Inequality Inconsistent with un charter vision


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Inequality

  • Inconsistent with UN Charter vision

  • Worsened by aspects of globalization

  • Confounds poverty reduction efforts

  • Not only in developing countries

  • Multidimensional and compromises development, security and human rights

  • Frustrates achievement of MDGs







Unequal GDP distribution



Per capita GDP in 20 poorest and richest countries



Income gap widened in recent years

  • Since 1980s, inequality has risen in most countries in all world regions

  • Income inequality trends in 73 countries for which data are available (1950s-1990s)

    • Risen in 48 countries
    • Relatively constant in 16 countries
    • Declined in 9 countries
  • Wealthiest 10% of global population increased share of global income from 51.6% to 53.4% (1980-92)

  • Related to greater wealth concentration



Global income inequalities (Gini coefficient values)



Shares of Global Private Consumption



Hunger and Malnutrition

  • Since 2000, the average number of food emergencies per year has been 30, compared with 15/year in 1980s

  • Sustained nutrition deprivation affects 852 million people

  • 1 billion overweight adults globally







Unemployment

  • Remains major source of inequality

  • Between 1993 and 2003:

    • Global number of unemployed rose by 31% to 186 million
    • Unemployment rates decreased slightly in developed countries while increasing in most other parts of the world
    • Spread of jobless growth


The informal economy

  • Those in informal economy typically “have-nots” in society

  • - 60% women

  • - 535 million earn less than $1/day



Informal employment dominant in many regions

  • Share of informal workers in non-agricultural workforce by region:

  • North Africa: 48%

  • Latin America & Caribbean: 51%

  • Asia: 65%

  • Sub-Saharan Africa: 78%

  • (excl. South Africa)



Informal economy share of Gross National Income, 2000

  • Developing countries: 41%

  • Transition economies: 38%

  • OECD Countries: 18%



Jobless growth

  • Jobless growth

  • Labour market flexibility

  • Reduction in public sector jobs

  • De-industrialization

  • Economic crises

  • Greater “outsourcing”

  • Household survival strategies



Health Inequalities

  • Great differences between and within countries

  • Intellectual Property Rights and Patent Monopolies

    • High drug prices
    • Unequal access
    • Compromised capacity to react to crises


HIV/AIDS

    • Highly unequal global and regional impacts
    • Lowers growth, increases dependencies
    • Worsens existing inequalities between women and men
    • Depletes human resources, threatening stability, security and development


Education, 2001 Despite progress, substantial inequities exist by region



Financial Liberalization

  • Net capital flows from ‘capital poor’ to ‘capital rich’

  • Increased financial volatility

  • Undermines use of inclusive targeted developmental credit

  • Slower economic growth in recent decades



Trade Liberalization

  • International terms of trade moving against developing countries

    • Primary commodities vs. manufactured commodities
    • Tropical agriculture vs. temperate agriculture
    • Generic products vs. those protected by intellectual property rights


Tariffs biased against developing countries

    • Imports between developed countries average 1%
    • Tariffs on textiles from developing countries as high as 9%
    • Tariffs on agricultural products from developing countries as high as 20%


Retreat of the state

  • Stabilization and structural adjustment programs

  • Less progressive taxation

  • Reduced redistributive role

  • Reduced role of government in many developing countries

    • Public education
    • Health
    • Housing
    • Utilities


Government Spending Priorities



Inequality and Violence

  • Violence often rooted in inequality

    • No simple causal relationship
  • Vicious cycle mutually reinforcing:

    • Poverty
    • (Horizontal) Inequalities
    • Authoritarian governance
    • Lack of opportunities
    • Armed conflict
    • Reduced growth and development
  • Links between inequalities and extreme aspects of social disintegration









Thank you



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