Inequality Inconsistent with un charter vision

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

• Access to healthcare
• Life expectancy
• Under-five mortality

• 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

• High-income countries spend 2½ times more of national wealth for health, education and welfare than low income countries.

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