state of the world's cities 2012/2013 - United Nations Sustainable ...

Chapter 2.4Equity and theProsperity of CitiesThe past few decades have witnessed a notable surge ineconomic growth, but one which has been accompaniedby an equally daunting degree of inequity under variousforms, with wider income gaps and deepening povertyin many cities across the world. In the 1970s, wideningincome gaps began an unhealthy co-existence witheconomic growth, with reduced incomes for households inthe middle and lower classes and steady increases for thewell-off. Economic inequality is seriously detrimental to theequitable distribution among individuals of opportunitiesto pursue a life of theirchoosing and be sparedCities must realize from extreme deprivationfact that equity hasin outcomes.a significant impact onEquity involveseconomic performance, systematic (re)distributionsince the greater the degreeof the economic benefitsof equity, the greater theof growth or development,chances of a fuller, moreefficient use of available with legal frameworksresources, including skills ensuring a ‘level playingand creative talent. 1field’ and institutionsAs understood in protecting the rightsfact this Report urban of the poor, minoritiesprosperity thrives on equity, and vulnerable groups.which involves reduction Promotion of equityin barriers on individual/also involves enhancingcollective potential,socioeconomic equalityexpansion of opportunities,and strengthening ofand providing for civichuman agency 2 and civic participation by all in theengagement.social, political and culturalspheres.The unequal wealth of cities: increasedincome disparitiesThe 2011 OECD report Divided We Stand stresses thatincome gaps between rich and poor are expanding in bothdeveloped and developing countries. In OECD countries,inequalities are as steep as they have been for over 30years. The Report shows that, in advanced economies, theaverage income of the richest 10 per cent of the populationis about nine times higher than that of the poorest10 per cent. In Europe’s Nordic countries, the average is amultiple of six but growing,compared with multiplesof 10 in Italy, Korea andCities generatethe United Kingdom, and fact wealth, but itup to 14 in Israel, Turkey is not shared equitably.and the United States.Despite considerableincreases in capital andThese are overshadowedper capita GDP growthby countries such as Chilealong with reductionsand Mexico with multiples in extreme poverty,of 27, and in Brazil, despite inequality as a whole isrecent declines in inequity growing in most parts(the exception amongof the world – a processthat undermines urbanthe BRICs countries), theprosperity.ratio of incomes betweenrichest and poorest reachedIn many cities,facta staggering 50:1. 4 the populationInand local expertsthe 34 OECD memberconcur that inequalitiescountries, Gini coefficients are becoming steeper.have risen by 10 per cent A review of inequalityon average between thein cities reveals a1980s and the late 2000s steady increase over(from 0.29 to 0.316). 5the long term, as wellas in recent decades.In emerging economies3Paradoxically, this has(such as Argentina, Brazil, occurred as wealth roseChina, India, Indonesia,enormously around thethe Russian Federationworld.68