SDG of the week: Reduced inequalities 1MS

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SDG of the week: Reduced inequalities

Reduce inequality within and among countries

09.03.2020.

Income inequality is on the rise—the richest 10 percent have up to 40 percent of global income whereas the poorest 10 percent earn only between 2 to 7 percent. If we take into account population growth inequality in developing countries, inequality has increased by 11 percent. Income inequality has increased in nearly everywhere in recent decades but at different speeds. It’s lowest in Europe and the highest in the Middle East.

These widening disparities require sound policies to empower lower-income earners and promote economic inclusion of all regardless of sex, race or ethnicity.
Income inequality requires global solutions. This involves improving the regulation and monitoring of financial markets and institutions, encouraging development assistance and foreign direct investment to regions where the need is greatest. Facilitating the safe migration and mobility of people is also key to bridging the widening divide.

The international community has made significant strides towards lifting people out of poverty. The most vulnerable nations – the least developed countries, the landlocked developing countries and the small island developing states – continue to make inroads into poverty reduction. However, inequality persists and large disparities remain regarding access to health and education services and other assets.

There is a growing consensus that economic growth is not sufﬁcient to reduce poverty if it is not inclusive and if it does not involve the three dimensions of sustainable development – economic, social and environmental. Fortunately, income inequality has been reduced both between and within countries. At the current time, the per capita income of 60 out of 94 countries with data has risen more rapidly than the national average. There has been some progress regarding creating favorable access conditions for exports from the least developing countries as well.

To reduce inequality, policies should be universal in principle, paying attention to the needs of disadvantaged and marginalized populations. There needs to be an increase in duty-free treatment and continuation of favoring exports from developing countries, in addition to increasing the share of developing countries’ votes within the IMF. Finally, innovations in technology can help reduce the cost of transferring money for migrant workers.

In 2016, over 64.4% of products exported by the least developed countries to world markets faced zero tariffs, an increase of 20% since 2010.
Evidence from developing countries shows that children in the poorest 20 percent of the population are still up to three times more likely to die before their fifth birthday than children in the richest quintiles.
Social protection has been significantly extended globally, yet persons with disabilities are up to five times more likely than average to incur catastrophic health expenditures.
Despite overall declines in maternal mortality in most developing countries, women in rural areas are still up to three times more likely to die while giving birth than women living in urban centers.
Up to 30 percent of income inequality is due to inequality within households, including between women and men. Women are also more likely than men to live below 50 percent of the median income

Targets:

10.1 By 2030, progressively achieve and sustain income growth of the bottom 40 percent of the population at a rate higher than the national average

10.2 By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or another status

10.3 Ensure equal opportunity and reduce inequalities of outcome, including by eliminating discriminatory laws, policies, and practices and promoting appropriate legislation, policies, and action in this regard

10.4 Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality

10.5 Improve the regulation and monitoring of global financial markets and institutions and strengthen the implementation of such regulations

10.6 Ensure enhanced representation and voice for developing countries in decision-making in global international economic and financial institutions in order to deliver more effective, credible, accountable and legitimate institutions

10.7 Facilitate orderly, safe, regular and responsible migration and mobility of people, including through the implementation of planned and well-managed migration policies

10.A Implement the principle of special and differential treatment for developing countries, in particular, least developed countries, in accordance with World Trade Organization agreements

10.B Encourage official development assistance and financial flows, including foreign direct investment, to States where the need is greatest, in particular, least developed countries, African countries, small island developing States and landlocked developing countries, in accordance with their national plans and programs

10.C By 2030, reduce to less than 3 percent the transaction costs of migrant remittances and eliminate remittance corridors with costs higher than 5 percent