1FW2e8F

Recommendations

Info

SECTION 1 2 3 EXTREME INEQUALITY A multi-decade cross-country analysis by IMF economists, for instance, strongly suggests that not only does inequality hinder growth’s poverty reducing function it also diminishes the robustness of growth itself. 183 The IMF has documented how greater equality can extend periods of domestic growth 184 and that inequality was a contributing factor to the 2008 financial crisis. 185 Growth is still possible in countries with high levels of inequality, but inequality reduces the chances of such growth spells being robust and long lasting. Moreover, detailed analysis of developed and developing countries from the mid-1990s onwards shows that a high level of inequality constitutes a barrier to future economic growth 186 because it obstructs productive investment, limits the productive and consumptive capacity of the economy, and undermines the institutions necessary for fair societies. 187 If national governments care about strong and sustained growth, then they should prioritize reducing inequality. This is especially true for developing countries, where inequality is on average higher than in rich countries. The Asian Development Bank (ADB) has gone so far as to suggest that growth and equality can ‘be seen as part of a virtuous circle.’ 188 INEQUALITY HINDERS THE POVERTY-REDUCING POTENTIAL OF GROWTH If inequality is reduced, poverty reduction happens faster and growth is more robust. Conversely, if inequality becomes worse poverty reduction slows and growth becomes more fragile. 189 It is the distribution of economic growth that matters for poverty reduction rather than the pursuit of growth for its own sake. For example, in Zambia, GDP per capita growth averaged three percent every year between 2004 and 2010, pushing Zambia into the World Bank’s lower-middle income category. Despite this growth, the number of people living below the $1.25 poverty line grew from 65 percent in 2003 to 74 percent in 2010. 190 Nigeria had a similar experience between 2003 and 2009; poverty increased more than anticipated, and the richest 10 percent experienced a six percent increase in the share of national consumption while everyone else’s share fell. 191 Research by Oxfam suggests that inequality is the missing link that explains how the same rate of growth can lead to different rates of poverty reduction. 193 The World Bank has similarly found that in countries with very low income inequality, such as several in Eastern Europe, every one percent of economic growth reduced poverty by four percent. 194 In countries with high inequality, such as Angola or Namibia, growth had essentially no impact on poverty. 195 Even in medium-income countries, the level of inequality can have a huge impact on the poverty reducing impact of growth. 196 The World Bank’s researchers concluded that ‘the power of growth to reduce poverty depends on inequality,’ both its initial level and its evolution. 197 “ The power of growth to reduce poverty… tends to decline both with the initial level of inequality, and with increases in inequality during the growth process. F. FERREIRA AND M. RAVALLION 192 “ 40
SECTION 1 2 3 EXTREME INEQUALITY EXTREMES OF WEALTH AND INEQUALITY ARE ENVIRONMENTALLY DESTRUCTIVE The world is approaching a number of ‘planetary boundaries’, where humanity is using the maximum possible amount of natural resources, such as carbon or safe drinking water. The closer we get to reaching these limits, the more the hugely unequal distribution of natural resources matters. 198 Often it is the poorest that are hit first and hardest by environmental destruction and the impacts of climate change. 199 Yet it is the wealthiest who most impact on our planet’s fragile and finite resources. Narinder Kakar, Permanent Observer to the UN from the International Union for Conservation of Nature, has declared that environmental decline can be attributed to less than 30 percent of the world’s population. 200 The richest seven percent of world’s population (equal to half a billion people) are responsible for 50 percent of global CO 2 emissions; whereas the poorest 50 percent emit only seven percent of worldwide emissions. 201 Key to this are the consumption patterns of the richest. The majority of emissions from wealthier households in rich countries are indirect, such as through the consumption of food, consumer goods and services, much of which is produced beyond their nations’ shoreline. 202 It is the ‘population with the highest consumption levels [that] is likely to account for more than 80 percent of all human-induced greenhouse gas emissions’. 203 Such inequalities in emissions have a parallel in the disproportionate use of the world’s resources. Just 12 percent of the world’s people use 85 percent of the world’s water. 204 41
Page 1 and 2: Even it up TIME TO END EXTREME INEQ
Page 3 and 4: JEFFREY SACHS Director of the Earth
Page 5 and 6: ACKNOWLEDGEMENTS The paper was writ
Page 7 and 8: SECTION 1 2 3 FOREWORD FOREWORD The
Page 9 and 10: SECTION 1 2 3 FOREWORD Persistent i
Page 11 and 12: SECTION 1 2 3 EXECUTIVE SUMMARY Nth
Page 13 and 14: SECTION 1 2 3 EXECUTIVE SUMMARY Bil
Page 15 and 16: SECTION 1 2 3 EXECUTIVE SUMMARY The
Page 17 and 18: SECTION 1 2 3 EXECUTIVE SUMMARY pow
Page 23 and 24: SECTION 1 2 3 EXECUTIVE SUMMARY Des
Page 25 and 26: SECTION 1 2 3 EXECUTIVE SUMMARY and
Page 27 and 28: SECTION 1 2 3 EXECUTIVE SUMMARY gov
Page 29 and 30: SECTION 1 2 3 INTRODUCTION Nthabise
Page 31 and 32: A view across Santa Marta favela an
Page 33 and 34: SECTION 1 2 3 EXTREME INEQUALITY ME
Page 35 and 36: SECTION 1 2 3 EXTREME INEQUALITY FI
Page 37 and 38: SECTION 1 2 3 EXTREME INEQUALITY TA
Page 39 and 40: SECTION 1 2 3 EXTREME INEQUALITY 1.
Page 41 and 42: SECTION 1 2 3 EXTREME INEQUALITY FI
Page 43: SECTION 1 2 3 EXTREME INEQUALITY Th
Page 47 and 48: SECTION 1 2 3 EXTREME INEQUALITY 20
Page 49 and 50: SECTION 1 2 3 EXTREME INEQUALITY in
Page 51 and 52: SECTION 1 2 3 EXTREME INEQUALITY Ca
Page 53 and 54: SECTION 1 2 3 EXTREME INEQUALITY ed
Page 55 and 56: SECTION 1 2 3 EXTREME INEQUALITY (C
Page 57 and 58: SECTION 1 2 3 EXTREME INEQUALITY Si
Page 59 and 60: SECTION 1 2 3 EXTREME INEQUALITY Th
Page 61 and 62: SECTION 1 2 3 EXTREME INEQUALITY CA
Page 63 and 64: SECTION 1 2 3 EXTREME INEQUALITY Id
Page 65 and 66: SECTION 1 2 3 EXTREME INEQUALITY CA
Page 67 and 68: SECTION 1 2 3 EXTREME INEQUALITY On
Page 69 and 70: SECTION 1 2 3 EXTREME INEQUALITY MY
Page 71 and 72: SECTION 1 2 3 EXTREME INEQUALITY ma
Page 73 and 74: SECTION 1 2 3 WHAT CAN BE DONE THE
Page 75 and 76: SECTION 1 2 3 WHAT CAN BE DONE BURK
Page 77 and 78: SECTION 1 2 3 WHAT CAN BE DONE In S
Page 79 and 80: SECTION 1 2 3 WHAT CAN BE DONE wage
Page 81 and 82: SECTION 1 2 3 WHAT CAN BE DONE (CAS
Page 83 and 84: SECTION 1 2 3 WHAT CAN BE DONE Some
Page 85 and 86: SECTION 1 2 3 WHAT CAN BE DONE 2.3
Page 87 and 88: SECTION 1 2 3 WHAT CAN BE DONE Inte
Page 89 and 90: SECTION 1 2 3 WHAT CAN BE DONE appr
Page 91 and 92: SECTION 1 2 3 WHAT CAN BE DONE fisc
Page 93 and 94: SECTION 1 2 3 WHAT CAN BE DONE 2.4
Page 95 and 96:
SECTION 1 2 3 WHAT CAN BE DONE THE
Page 97 and 98:
SECTION 1 2 3 WHAT CAN BE DONE CASE
Page 99 and 100:
SECTION 1 2 3 WHAT CAN BE DONE Stro
Page 101 and 102:
Page 103 and 104:
SECTION 1 2 3 WHAT CAN BE DONE to 5
Page 105 and 106:
SECTION 1 2 3 WHAT CAN BE DONE 2.5
Page 107 and 108:
SECTION 1 2 3 WHAT CAN BE DONE hous
Page 109 and 110:
Page 111 and 112:
SECTION 1 2 3 WHAT CAN BE DONE CASE
Page 113 and 114:
SECTION 1 2 3 WHAT CAN BE DONE The
Page 115 and 116:
SECTION 1 2 3 WHAT CAN BE DONE (CAS
Page 117 and 118:
SECTION 1 2 3 TIME TO ACT Today’s
Page 119 and 120:
SECTION 1 2 3 TIME TO ACT • Imple
Page 121 and 122:
SECTION 1 2 3 TIME TO ACT • Commi
Page 123 and 124:
SECTION 1 2 3 TIME TO ACT • Ensur
Page 125 and 126:
SECTION 1 2 3 NOTES NOTES 1. Based
Page 127 and 128:
SECTION 1 2 3 NOTES 51. M. Carney (
Page 129 and 130:
SECTION 1 2 3 NOTES 106. S. Limwatt
Page 131 and 132:
SECTION 1 2 3 NOTES 168. The Transn
Page 133 and 134:
SECTION 1 2 3 NOTES 245. P. Engel,
Page 135 and 136:
SECTION 1 2 3 NOTES 324. Oxfam and
Page 137 and 138:
SECTION 1 2 3 NOTES 390. In C. Godf
Page 139 and 140:
SECTION 1 2 3 NOTES 449. P. Stevens
Page 142:
The widening gap between rich and p
show all

1FW2e8F

Create successful ePaper yourself

Delete template?

Save as template?