Rising inequality affecting more than two-thirds of the globe, but it’s not inevitable: new UN report

World Bank/Sarah Farhat Students attend class at Zanaki primary school in Dar es Salaam, Tanzania.

This article is brought to you in association with the United Nations.


Inequality is growing for more than 70 per cent of the global population, exacerbating the risks of divisions and hampering economic and social development. But the rise is far from inevitable and can be tackled at a national and international level, says a flagship study released by the UN on Tuesday.

The World Social Report 2020, published by the UN Department of Economic and Social Affairs (DESA), shows that income inequality has increased in most developed countries, and some middle-income countries – including China, which has the world’s fastest growing economy.

The challenges are underscored by UN chief António Guterres in the foreword, in which he states that the world is confronting “the harsh realities of a deeply unequal global landscape”, in which economic woes, inequalities and job insecurity have led to mass protests in both developed and developing countries.

“Income disparities and a lack of opportunities”, he writes, “are creating a vicious cycle of inequality, frustration and discontent across generations.”

‘The one per cent’ winners take (almost) all

The study shows that the richest one per cent of the population are the big winners in the changing global economy, increasing their share of income between 1990 and 2015, while at the other end of the scale, the bottom 40 per cent earned less than a quarter of income in all countries surveyed.

One of the consequences of inequality within societies, notes the report, is slower economic growth. In unequal societies, with wide disparities in areas such as health care and education, people are more likely to remain trapped in poverty, across several generations.

Between countries, the difference in average incomes is reducing, with China and other Asian nations driving growth in the global economy. Nevertheless, there are still stark differences between the richest and poorest countries and regions: the average income in North America, for example, is 16 times higher than that of people in Sub-Saharan Africa.

Four global forces affecting inequality

The report looks at the impact that four powerful global forces, or megatrends, are having on inequality around the world: technological innovation, climate change, urbanization and international migration.

Whilst technological innovation can support economic growth, offering new possibilities in fields such as health care, education, communication and productivity, there is also evidence to show that it can lead to increased wage inequality, and displace workers.

Rapid advances in areas such as biology and genetics, as well as robotics and artificial intelligence, are transforming societies at pace. New technology has the potential to eliminate entire categories of jobs but, equally, may generate entirely new jobs and innovations.

For now, however, highly skilled workers are reaping the benefits of the so-called “fourth industrial revolution”, whilst low-skilled and middle-skilled workers engaged in routine manual and cognitive tasks, are seeing their opportunities shrink.

Opportunities in a crisis

As the UN’s 2020 report on the global economy showed last Thursday, the climate crisis is having a negative impact on quality of life, and vulnerable populations are bearing the brunt of environmental degradation and extreme weather events. Climate change, according to the World Social Report, is making the world’s poorest countries even poorer, and could reverse progress made in reducing inequality among countries.

If action to tackle the climate crisis progresses as hoped, there will be job losses in carbon-intensive sectors, such as the coal industry, but the “greening” of the global economy could result in overall net employment gains, with the creation of many new jobs worldwide.

For the first time in history, more people live in urban than rural areas, a trend that is expected to continue over the coming years. Although cities drive economic growth, they are more unequal than rural areas, with the extremely wealthy living alongside the very poor.

The scale of inequality varies widely from city to city, even within a single country: as they grow and develop, some cities have become more unequal whilst, in others, inequality has declined.

Migration a ‘powerful symbol of global inequality’

The fourth megatrend, international migration, is described as both a “powerful symbol of global inequality”, and “a force for equality under the right conditions”.

Migration within countries, notes the report, tends to increase once countries begin to develop and industrialize, and more inhabitants of middle-income countries than low-income countries migrate abroad.

International migration is seen, generally, as benefiting both migrants, their countries of origin (as money is sent home) and their host countries.

In some cases, where migrants compete for low-skilled work, wages may be pushed down, increasing inequality but, if they offer skills that are in short supply, or take on work that others are not willing to do, they can have a positive effect on unemployment.

Harness the megatrends for a better world

Despite a clear widening of the gap between the haves and have-nots worldwide, the report points out that this situation can be reversed. Although the megatrends have the potential to continue divisions in society, they can also, as the Secretary-General says in his foreword, “be harnessed for a more equitable and sustainable world”. Both national governments and international organizations have a role to play in levelling the playing field and creating a fairer world for all.

Reducing inequality should, says the report, play a central role in policy-making. This means ensuring that the potential of new technology is used to reduce poverty and create jobs; that vulnerable people grow more resilient to the effects of climate change; cities are more inclusive; and migration takes place in a safe, orderly and regular manner.

Three strategies for making countries more egalitarian are suggested in the report: the promotion of equal access to opportunities (through, for example, universal access to education); fiscal policies that include measures for social policies, such as unemployment and disability benefits; and legislation that tackles prejudice and discrimination, whilst promoting greater participation of disadvantaged groups.

While action at a national level is crucial, the report declares that “concerted, coordinated and multilateral action” is needed to tackle major challenges affecting inequality within and among countries.

The report’s authors conclude that, given the importance of international cooperation, multilateral institutions such as the UN should be strengthened and action to create a fairer world must be urgently accelerated.

The UN’s 2030 Agenda for Sustainable Development, which provides the blueprint for a better future for people and the planet, recognizes that major challenges require internationally coordinated solutions, and contains concrete and specific targets to reduce inequality, based on income.                    

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

UN chief condemns deadly attacks in Pakistan

Mental health in times of pandemic: what can each individual do to lessen the burden?

The European Sting’s 2018 in most critical review

Obese people more likely to smoke, says new gene research: WHO

EU Directive makes haircut on uncovered deposits a standard in bank bail-ins

How India is solving its cooling challenge

How to maintain mental health in times of pandemic

Nearly two million Cameroonians face humanitarian emergency: UNICEF

Privatization and public health: a question of Human Rights

EU fight against tax-evasion and money laundering blocked by Britain

The US calls off globalization, targets Germany. Paris offer to Berlin comes at a cost

Why the fight against nature loss should be a business priority

Amazon, a pair of shoes and my Data Privacy walks away

Coronavirus: EU global response to fight the pandemic

The three US financial war fleets

Tackling youth unemployment through the eyes of a European entrepreneur

To reinvent the future, we must all work together

US, Russia oblige each other in Syria and Ukraine selling off allies

Sweden is fighting loneliness by housing older and younger generations together

Ambition, transformation, active citizenship: COP24 looks to next year’s big UN Climate Change Summit

Breaking news on European Youth Employment: European Youth Forum Guide tackles poor quality internships!

Senior UN officials call for return to sea rescues, after ‘the worst Mediterranean tragedy of this year’

UN chief outlines solutions to defeat ‘four horsemen’ threatening our global future

COVID-19: Mental balance in pandemic times

Tax revenues have reached a plateau

When is necessary understand the cultural marks in health-disease process

“The Belt and Road Initiative should be mutually beneficial for EU and China and every participating country”, Vice-President Papadimoulis of the European Parliament underscores from European Business Summit 2018

Single European Sky: for a more sustainable and resilient air traffic management

Antitrust: Commission imposes binding obligations on Gazprom to enable free flow of gas at competitive prices in Central and Eastern European gas markets

UN health agency identifies 5-year-old Congolese boy as first confirmed case of Ebola in Uganda

Nuclear testing has ‘disastrous consequences’ for people and planet, General Assembly told

Here’s how to find a job you really love

Youth and children in Europe set the new perspectives for the decades to come

COP24 addresses climate change displacement ahead of crunch migration meeting

The Indian case: health policies need to keep pace with public health literacy

Legendary Harlem Globetrotters slam-dunk at the UN, with message that brings families, nations together

Benefits of rural migration effect often overlooked, new UN report suggests

UN working with both sides, after hidden tunnels confirmed along Lebanon-Israel ‘Blue Line’

The MH17 tragedy to put a tombstone on Ukrainian civil war

Phone lines open between Ethiopia and Eritrea, and people are calling strangers

Permanent structured cooperation (PESCO) on the table of NATO Defense Ministers amid US concerns

Innovating together: connectivity that matters at ITU Telecom World 2019 – in association with The European Sting

Lithuania should find its own way in the EU

A money laundering case on Vatican Bank’s road to renovation

In the United States, there aren’t enough hours in the week to make rent

How the United States is falling in love with secondhand clothes

Altruism can be good for business, as these companies show

Is there a cure for corruption in Greece?

Environment and health at increasing risk from growing weight of ‘e-waste’

How digital entrepreneurs will help shape the world after the COVID-19 pandemic

How can newspapers survive? By measuring their social impact

Yemen agreement to end southern power struggle ‘important step’ towards peace: UN Special Envoy

Ukraine: Is there a political force able to undo the division?

EU elections: The louder the threats and the doomsaying the heavier the weight of the vote

EU will not deliver on promises without democratic accountability

EU and Japan select first Erasmus Mundus Joint Master Programmes

Can Kiev make face to mounting economic problems and social unrest?

The end of Spitzenkandidat: EU leaders concluded unexpectedly on EU top jobs

Copyright: European Union , 2017; Source: EC - Audiovisual Service; Photo: Frank Molter

EU hits deadlock on the future of glyphosate a month before deadline

Could Europe become the first climate-neutral continent?

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s