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SECTION 1 2 3 INTRODUCTION<br />

Nthabiseng was born to a poor black family in Limpopo, a rural area in<br />

South Africa. On the same day, Pieter was born nearby in a rich suburb of<br />

Cape Town. Nthabiseng’s mother had no formal schooling and her father<br />

is unemployed, whereas Pieter’s parents both completed university<br />

education at Stellenbosch University and have well-paid jobs.<br />

As a result, Nthabiseng and Pieter’s life chances are vastly different.<br />

Nthabiseng is almost one and a half times as likely to die in the first year<br />

of her life as Pieter. 128 He is likely to live more than 15 years longer than<br />

Nthabiseng. 129<br />

Pieter will complete on average 12 years of schooling and will most<br />

probably go to university, whereas Nthabiseng will be lucky if she<br />

gets one year. 130 Such basics as clean toilets, clean water or decent<br />

healthcare 131 will be out of her reach. If Nthabiseng has children there<br />

is a very high chance they will also grow up equally poor. 132<br />

While Nthabiseng and Pieter do not have any choice about where they<br />

are born, their gender, or the wealth and education of their parents,<br />

governments do have a choice to intervene to even up people’s life<br />

chances. Without deliberate action though, this injustice will be<br />

repeated in countries across the world.<br />

This thought experiment is taken from the World Development Report 2006.<br />

Oxfam has updated the facts on life chances in South Africa. 133<br />

Economic inequality ** – the skewed distribution of income and wealth – has<br />

reached extreme levels and continues to rise. Seven out of 10 people on the<br />

planet now live in a country where economic inequality is worse today than<br />

it was 30 years ago. 136 South Africa, for example, is now significantly more<br />

unequal than it was at the end of Apartheid 20 years ago. 137 This inequality<br />

undermines global efforts to reduce poverty and hurts us all. This report is<br />

focused on the pernicious effects of inequality, and the possible solutions to it.<br />

“<br />

Extreme disparities in<br />

income are slowing the<br />

pace of poverty reduction<br />

and hampering the<br />

development of broad-based<br />

economic growth.<br />

KOFI ANNAN 134<br />

“<br />

“<br />

There’s been class<br />

warfare going on for the<br />

last 20 years and<br />

my class has won.<br />

WARREN BUFFET<br />

THE FOURTH WEALTHIEST<br />

PERSON IN THE WORLD 135<br />

“<br />

Even It Up: Time to End Extreme Inequality starts by showing that the gap<br />

between rich and poor is already very wide and is growing in the majority of<br />

countries. It then demonstrates why extreme economic inequality is bad for all<br />

of us. In more unequal societies, rich and poor alike have shorter lives, and live<br />

with a greater threat of violence and insecurity. Inequality hinders economic<br />

growth and stifles social mobility. It creates conditions in which crime and<br />

corruption thrive. It underlies many of the world’s violent conflicts and is<br />

a barrier in the fight against climate change.<br />

Critically, this report will demonstrate that unless we close the gap between<br />

the haves and the have-nots, we will not win the battle against extreme<br />

** Inequality has many different dimensions, including race, gender, geography and<br />

economy, which rarely work in isolation. This report is primarily concerned with the<br />

concentration of financial resources and wealth in the hands of the few, which can<br />

affect political, social and cultural processes to the detriment of the most vulnerable.<br />

As such, in this report we use the term ‘inequality‘ to refer to extreme economic (wealth<br />

and income) inequality. When referring to the various dimensions of inequality we make<br />

these distinctions.<br />

25

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