Inequality: Why Does it Matter; How Does it Differ to Focussing on
Poverty?
Duncan GreenOxfam GB
Ambedkar UniversityNovember 2013
What do we mean by Poverty?
Absolute v Relative income Multidimensional – narrow (eg Human
Development Index) Asking Poor People (Voices of the Poor) Well/ Ill being Static v Dynamic – fear of tomorrow
What’s happening to income poverty?
What do we mean by inequality?
Income– Opportunity: soft and hard versions– Outcomes
Multidimensional inequality Vertical v Horizontal (spatial) Intergenerational (temporal) Measurement: Gini v deciles Power
Inequality is a rising concern
Shared by just about everybody
IMF links to major financial crises (rich elites recycling $) and social cohesion
World Bank highlights how much harder it is to end poverty in unequal countries (eg South Africa)
Stiglitz linking to political capture and positive feedback loops from influence
Planetary boundaries and the finite cake Behavioural economics and link to well-
being
What’s happening to global income inequality? Global Gini improving due to rise of BRICS Global extremes getting worse 100 richest people = 4x poorest 1.4bn Gini within countries mixed Deteriorating in all but 4 G20 countries But improving in many non-G20 countries,
eg in Latin America
Globally, it’s the 2%
G20 doing badly
And good and bad performers converging
Brazil v the RICS
Brazil’s success story on inequality
Over last decade, incomes of the poorest Brazilians have risen more than x5 faster than those of the richest
Hunger ‘largely dealt with’ Cf New Deal or post War UK Women > men Blacks > whites Northeast > Southeast
Cutting inequality needs much more than social protection Rights-based constitution Centre-left government Full employment Rising minimum wage, universal pension An integrated and effective public
administration A high level of public participation Political and economic stability
Gabriel Palma the most interesting
Deciles tell you more than Gini (Convergence)
In all countries, deciles 5-9 have (and keep) about 50% of wealth
Rest is up for grabs between top 10% and bottom 40%
Key political question is whether middle class allies with top or bottom
What might an NGO inequality agenda look like? Structures matter (oil v jobs) Taxation – quantity and quality Ceilings v floors (eg land) Redistribution > income (eg tertiary ed =
16% social spending in Brazil) More on attitudes and beliefs: gender, but
also caste, ethnicity, children, disability Focus on inequality between or within
countries?
Oxfam India on Inequality
Income Missing Jobs, Low Wages and Discrimination Education & Health Public v Private To Have or Not a Toilet About Networks and Chances Rents and Redistribution
Thanks!