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Inequality: Why Does it Inequality: Why Does it

Inequality: Why Does it - PowerPoint Presentation

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Inequality: Why Does it - PPT Presentation

Matter How Does it Differ to Focussing on Poverty Duncan Green Oxfam GB Ambedkar University November 2013 What do we mean by Poverty Absolute v Relative income Multidimensional narrow ID: 592255

income inequality poverty countries inequality income countries poverty gini global social public deciles political g20 redistribution happening people what

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Presentation Transcript

Slide1

Inequality: Why Does it Matter; How Does it Differ to Focussing on Poverty?

Duncan Green

Oxfam GB

Ambedkar

University

November 2013Slide2

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 tomorrowSlide3

What’s happening to income poverty?Slide4

What do we mean by inequality?IncomeOpportunity: soft and hard versions

Outcomes

Multidimensional inequality

Vertical v Horizontal (spatial)

Intergenerational (temporal)

Measurement: Gini v deciles

PowerSlide5

Inequality is a rising concernSlide6

Shared by just about everybodyIMF 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-beingSlide7

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 AmericaSlide8

Globally, it’s the 2%Slide9

G20 doing badlySlide10

And good and bad performers convergingSlide11

Brazil v the RICSSlide12

Brazil’s success story on inequalityOver 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 > SoutheastSlide13

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 stabilitySlide14

Gabriel Palma the most interestingDeciles 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 bottomSlide15

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?Slide16
Slide17

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 RedistributionSlide18

Thanks!