Inequality poverty and growth where do we stand in our relationship

Economic inequality - Wikipedia

inequality poverty and growth where do we stand in our relationship

1 Our thanks go to the participants in the DIAL-Paris I development economics Relationship”, Journal of Development Economics, 40, . Fishlow A. ( ), “Inequality, Poverty and Growth: Where Do We Stand?, in Bruno M. Campaign group criticises development strategies as research shows in Africa are getting richer, because we're seeing a form of 'development' . So I'd say that Mozambique stands out in this report,” said Andrew Amoils, make The Guardian sustainable by deepening our relationship with our readers. [i]. Discrimination can both cause poverty and be a hurdle in alleviating poverty. . The relationship between discrimination, inequality, and poverty can Failure to do so may lead to unequal outcomes of development and.

A specific target of addressing the social and economic needs of the most marginalized or discriminated against groups in each country. The framework should establish the methodology for identifying marginalized or disadvantaged groups, but the groups identified would vary country to country.

What can monetary policy do about inequality?

Indicators should look to identify structural discrimination, including consideration of discriminatory laws and discrimination by private actors. Considerations should include whether governments have non-discrimination laws that bind public and private entities with a definition of discrimination consistent with international human rights lawrequire public and private institutions to develop non-discrimination action plans, and fully implement such laws and policies.

Indicators should measure realization of urgent social and economic needs of the most marginalized populations. Indicators which measure the achievement of each target for the most marginalized or discriminated against groups in each country.

In order to achieve this, disaggregated data will be essential. It may not be feasible to disaggregate date by all potential grounds of discrimination. The post framework should emphasize the importance of development reaching the poorest. A specific target of addressing the social and economic needs of the poorest two wealth quintiles in each country.

Indicators which measure the achievement of each target by wealth quintiles. This will require the collection of data along wealth quintiles. A specific target on reducing income inequalities within countries, with an emphasis on reducing the gap between the richest and poorest quintiles Other human rights treaties have since prohibited discrimination on the grounds of marital status, [xiii] descent or ethnic origin, [xiv] disability, [xv] nationality, [xvi] age, [xvii] and economic position.

HIV statushomelessness, or because they engage in sex work. Discrimination also includes incitement to discriminate and harassment. This includes addressing the urgent social needs of such populations as well as assessing difficulties that marginalized and excluded groups experience in enjoying economic, social and cultural rights, and taking the necessary steps to address these difficulties. According to Bureau of Justice Statistics approximately 3. The relationship between discrimination, inequality, and poverty can also be seen, for instance, in Burma.

Discrimination against certain ethnic minorities is widespread in Burma and addressing this discrimination should be a key element of poverty reduction strategies. The Burmese government has long denied Rohingya the right to obtain citizenship in Burma, which has facilitated human rights abuses against them and rendered them stateless, posing a serious obstacle to achieving a durable solution to the sectarian violence in Arakan State and resolving the situation of Rohingya refugees.

As international donors enhance engagement with the Burmese government in response to significant governance and human rights reforms, donors and the government should work to address the urgent social needs of the most in need. As set out below, dismantling discrimination and addressing inequality requires a range of fully implemented laws, policies and programmes, and may include temporary special measures.

It may also require a change in resource allocation, with devotion of greater resources to marginalized groups. Maintenance of state-sponsored discrimination can undermine development activities for specific sectors of the population, even if overall a country is meeting its goals and indicators. It has doubled female primary school enrollment in 10 years, and more than halved infant mortality.

According to some studies, both the rich and the poor have benefitted from these gains. However, Human Rights Watch research demonstrated that certain women and families may not benefit from these societal gains due to discriminatory family laws that push them deeper into poverty. Dismantle Discriminatory Practices The post framework should recognize the importance of identifying, prohibiting, and dismantling discriminatory practices—both of both a direct and indirect nature—for poverty alleviation.

Governments should implement the necessary strategies, policies, and action plans, which may include temporary special measures to accelerate the achievement of equality, to address discrimination.

inequality poverty and growth where do we stand in our relationship

Yet millions of children suffer from discriminatory barriers to education and either never attend school or are compelled to leave school early. While MDG 2 highlighted equal education for girls, it did not highlight other discriminatory barriers to education.

As a result, children with disabilities represent a significant proportion of theprimary school age children who remain out of school in Nepal. These patterns are replicated elsewhere—globally, children with disabilities are less likely to start school and have significantly lower rates of school completion than non-disabled children. The government, donors, and international institutions need to take the necessary steps to address the barriers that keep children with disabilities from attending school.

Human Rights Watch research has also documented how discrimination and abuse against women and children has impacted their ability to access quality health care. In the area of maternal health, research carried out by Human Rights Watch in South Africa has documented a strong link between the neglect and abuse of women's rights—especially during pregnancy and labor—and poor maternal health outcomes.

Similarly, Human Rights Watch found in a report that efforts to roll out antiretroviral treatment in Kenya had limited impact as they failed to address the discrimination, stigma, abuse, and neglect that many people living with HIV experience. Human Rights Watch identified a range of barriers and forms of discrimination which children faced in accessing HIV testing and treatment.

HIV-positive mothers who were victims of violence and property rights abuses were unable to access treatment for themselves or their children because they could not afford transport to health centers or enough food to avoid serious side effects from the drugs. Parents or caregivers lacked accurate information about medical care for children, or avoided testing and treatment because of stigma and discrimination.

Orphans also faced neglect and abuse. HIV testing and treatment programs should work to remove discriminatory barriers to care. Address Discrimination by Private Actors Discrimination by private actors in workplaces, the provision of services, or other sectors of society may prevent the enjoyment of human rights.

Gender-based violence is a form of private discrimination that may prevent some women equal access to the benefits of state or donor-led development programs. However, in Human Rights Watch found that women's unequal status in Zambian society gravely undermined their ability to access and adhere to antiretroviral treatment ART.

Nondiscrimination in the workplace is enshrined as a core labor right and key to addressing inequality and poverty. Human Rights Watch research has shown how user fees and transport costs present a barrier for poorer families are burdened in accessing health care or education.

It can go some way toward achieving this by including indicators which measure the achievement of targets by wealth quintiles, with a specific target of addressing the social and economic needs of the poorest two quintiles. Several NGOs have suggested also including a specific target on reducing income inequalities within countries, with an emphasis on reducing the gap between the richest and poorest quintiles The post framework should recognize the risk of discrimination in development policies and actively prevent against it.

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Human Rights Watch has documented discrimination in the distribution of aid, disproportionate negative impacts of development policies, and failure in project design to consider at-risk groups. We have also documented how development initiatives have violated the rights of indigenous peoples rather than seeking to realize their social and economic rights while respecting their cultural rights. There is no reference in the MDGs to people being hurt or disadvantaged by development efforts.

Nor do many developing country governments, bilateral donors, or the international financial institutions use a human rights framework for understanding, mitigating, and remedying the harm that may result from development efforts.

An explicit focus within the MDGs and in development strategies on human rights and associated principles of transparency, consultation, participation, and accountability could have helped to correct this.

Avoid Discrimination in the Distribution of Aid Too often, government funds or development aid are misused for political gain rather than investing in the realization of social and economic rights. This can come in the form of outright corruption, in discrimination on the basis of political opinion in the distribution of aid, or in investing in areas where politicians will most benefit rather than investing in the areas of greatest need.

Local officials denied these people access to seeds and fertilizer, agricultural land, credit, food aid, and other resources for development on the basis of their political opinion. The post framework should acknowledge this risk and work to prevent it. Design Projects to Consider At-Risk Groups and Avoid Adverse Impacts Governments and donors should ensure that their development strategies and projects are designed to consider at-risk groups and avoid any adverse rights impacts and develop accessible, effective accountability mechanisms for those discriminated against.

Background papers prepared for World Development Report The Links between Finance and Inequality: Much attention has recently been given to whether market reforms reduce or increase inequality. Inequality often reflects unequal access to productive opportunities and recent evidence has highlighted the presence of onerous barriers to entry, especially in developing countries.

This paper focuses on the relationships between inequality and finance. In principle, a better financial system can help overcome barriers, and thereby increase economic growth and reduce inequality. Indeed, a more developed, that is deeper, financial sector has been shown to aid economic growth. Financial reform will only reduce inequality, however, if it improves access for more individuals with growth opportunities.

Reforms thus need to broaden, not just deepen financial systems.


At the same, as recent theoretical and empirical work has shown, ex ante inequality can hinder welfare enhancing reforms. Also, by design or implementation, financial reforms can lead risks to be allocated unfairly and costs to be socialized, especially around financial crises, further worsening inequality.

Furthermore, reforms that do not provide gains for many may be followed by a political backlash that may make even valuable financial sector reforms not sustainable.

Building Equitable Legal Institutions.

  • Economic inequality
  • Discrimination, Inequality, and Poverty—A Human Rights Perspective
  • Africa wealth report 2015: rich get richer even as poverty and inequality deepen

The different legal or rule-based systems in any given society underpin the institutions that govern both market and non-market interactions; they determine the distribution of economic, social and political rights and obligations affecting both economic and non economic relationships.

They shape the regulation of market practices and the delivery of public services, and hence the opportunities people have to take part in economic activity and generate fair returns. The belief in the importance of legal institutions is reflected in the emergence of Justice Sector Reform JSR as a central concern for many development agencies. In the past fifteen years, the World Bank has financed hundreds of legal and judicial reform initiatives and numerous stand alone projects, and has recently committed to scaling up these efforts.

Other bi-lateral development agencies and multi-lateral donors have committed hundreds of millions of dollars to reforming judicial systems, with the majority of developing countries and former socialist states now receiving assistance for some kind of justice sector reform.

Despite concerted efforts, over a decade of projects have reported limited success and brought current approaches into question. There is a standard hypothesis in economics, the rational self-interest hypothesis, which is based on a radically simplified view of human nature. In this view, individuals are exclusively motivated by their material self-interest and unboundedly rational in the pursuit of it. This hypothesis provides accurate predictions for competitive markets with standardized goods.

However, much economic activity occurs outside of such markets—in markets with a small number of traders, within firms These two political dramas have used the discourse of religion and are leading to new and not surprisingly contradictory interpretive strands of modernity, development, and equity. In order to understand how religious movements are influencing the development process and in particular what implications they have for equity and an anti-poverty agenda it is critical first to explicate how religious movements may be interpreted using the lens of identity politics.

It has been argued that inequality should be of little concern in poor countries on the grounds that: This article takes i as given but questions ii. It is argued that there are a number of ways in which the extent of inequality in a society, and how it evolves over time, influences the extent of poverty today and the prospects for rapid poverty reduction in the future. Engaging with the Plurality of Justice Systems.

The importance of building effective legal and regulatory systems has long been recognized by development professionals, yet there have been few programmatic initiatives that have translated empirical evidence and political intention into sustained policy success. A key reason is that such efforts have too often consisted of top-down technocratic initiatives that have inadequately appreciated the social and cultural specificity of the particular context in which they operate, as well as the complexity of the systems they have attempted to create.

Reforms have often lacked any clear theory about the roles and functions of justice systems, and have failed to consider how successful legal systems in developed countries were actually constructed—including how they gained authority and legitimacy. Local level context and the systems of justice actually operating in many contexts were largely ignored. As such, justice sector reformers have failed to acknowledge, and thus comprehend, how the systems—which, at least in rural areas, are predominantly customary, idiosyncratic to specific sub-regional and cultural contexts, and residing only in oral form—by which many people if not most poor people in developing countries order their lives function.

The following papers were prepared in collaboration with the U. Andersson, Martin and Christer Gunnarsson. The Case of Sweden. Inter-sectoral and regional income disparities remain fairly limited and the gender income gap has been considerably narrowed.

By and large, it appears that equality remains a fundamental trait of society. The paper discusses the poverty and inequality reduction properties of non-contributory pension in Brazil, South Africa and Bangladesh. It examines the development of non-contributory pension programmes in the countries involved, and the institutional factors behind their extension and current sustainability. It also examines the incidence of non-contributory pension programmes on poverty and inequality.

Introduction International migration is a powerful symbol of global inequality, whether in terms of wages, labour market opportunities, or lifestyles. Millions of workers and their families move each year across borders and across continents, seeking to reduce what they see as the gap between their own position and that of people in other, wealthier, places. This includes not only international migration, but also permanent, temporary and seasonal migrations within poorer countries, a phenomenon of considerable importance across much of Africa, Asia and Latin America.

Yet it is also clear that migration - and perhaps especially international migration - is an activity that carries significant risks and costs. As such, although migration is certainly rooted, at least in part, in income and wealth inequalities between sending and receiving areas, it does not necessarily reduce inequality in the way intended by many migrants.

Much depends on the distribution of these costs and benefits, both within and between sending and receiving countries and regions. Also important in terms of the aggregate impact of migration on sending societies is the selectivity of migration itself.

Clearly if most migrants were to come from the poorest sections of society, and they were to achieve net gains from migration, this would act to reduce economic inequality at least, all other things being equal. But migrants are not always the poorest, they do not always gain, and other factors are not equal.

Development, Democracy and Equity. In the last half century Spain has undergone a dramatic and by most counts successful political and economic transformation from relative underdevelopment and authoritarianism to wealth and democracy. In the immediate aftermath of World War II, which resulted in the re-establishment of democracy in Western Europe, Spain remained a culturally and diplomatically isolated country, governed by authoritarian institutions.

Moreover, whereas democratic Europe experienced a period of rapid economic growth and growing trade integration, Spain was burdened by the destruction yielded by its civil war fought in the s, the pursuit of autarkic policies and a long history of relative poverty.

Following the decision to liberalize its economy in the late s, Spain quickly transformed into a modern manufacturing and service-based economy, experiencing unprecedented levels of prosperity, massive urbanization and a growing middle class. With the death of its dictator inSpain embarked in a peaceful transition to democracy, the construction of a broad welfare state and its integration in the European Union.

This successful transition to economic and political modernity is particularly relevant, both theoretically and from the viewpoint of policymakers, because Spain stands as one of the few countries that managed to move peacefully from underdevelopment and authoritarianism to democracy and prosperity in the last decades.

With the exception of a few Asian cases and, more recently, some small Eastern European nations, the rest of the world, which was either underdeveloped, undemocratic or both a few decades ago, has still a long way to catch up with the developed West. Power, Recognition and the Conditions for Equity. The World Development Report WDR will reflect some important shifts in popular thinking about the relationship between inequality, growth and poverty.

First, it will refute the Kuznetsian position that inequality has an invariably positive role and will, instead, assert that high levels of inequality can curtail the potential poverty-reducing impact of growth; conversely, where there is low or falling inequality, lower income groups will have a larger share of any increase in national income Naschold Second, following Sen ; and others, the WDR will stress the importance of equity, arguing that poverty reflects deprivation in income and consumption, as well as in capabilities, such as health, education and civil liberties.

It will maintain that individuals have differing levels of advantage, which, in addition to income, could be understood as their capability and freedom to make choices, and to convert their incomes into well-being—by establishing personal goals and having realistic means of attaining them.

Economic Growth and Inequality (Joseph Stiglitz)

Therefore, it will attempt to define those policies and institutional arrangements that will supply the assets— political, social and economic—and opportunities that people in poverty need to transform their lives In theory, new mineral wealth should offer governments a chance to boost economic growth and reduce inequality.

In practice, it often leads to economic stagnation, civil conflict, and heightened inequality. To avoid these problems, governments must navigate a complex series of economic, social, and political challenges. One of the most difficult challenges is deciding how to deal equitably with the regional or local communities where the extraction occurs. Mineral firms are often caught between the two sides. When these disputes can be resolved, mineral development can proceed; when they cannot — as in Bolivia, Sudan, Indonesia, and Papua New Guinea — the result may be political unrest and violent conflict.

This paper explores the problems and opportunities that governments, firms, and local communities face when they must divide the costs and benefits of a mineral development project. It makes four central arguments: The purpose of this study is to explore the relationship between distributions of asset inequality, how these distributions are created and maintained, and agricultural growth.

We intend to investigate what policies and institutions tend to promote equally shared growth. The motivating question that guides our study is: How does differential access to productive assets in the agricultural sector, at various levels regional, community and householdeffect inequalities in agricultural outcomes in terms of productivity and poverty?

The dominant discourse on agricultural productivity and distribution has been largely technocratic, focusing on input-output relationships, defined and measured with a yardstick specific to the discipline of economics.

We review certain strands of this literature in depth. A less well-known strand of literature emphasises the social and political constructions and reproductions of a variety of inequalities. While this is a relatively small literature we use it to broaden our understanding of the processes and institutions that link inequality and productivity. Furthermore, we use Ethiopian agriculture as a case study to highlight the persistent nature of inequality as causally related to historical choices and path dependency.

Rather than unidirectional causalities, what we observe is a complex system whereby inequality affects growth which in turn reinforces processes that exacerbate and reproduce inequalities.

From Columbia University The world distribution of income: Country distributions are constructed by combining national accounts GDP per capita to anchor the mean with survey data to pin down the dispersion.

inequality poverty and growth where do we stand in our relationship