Related to inequalities present in the world.

1. Reduced Inequalities
By: Muhammad Adnan Ejaz

2. Outline
 Definition
 Types
 Inequality in the Headlines
 Some Facts and Figures
 How to reduce Inequality

3. Definition
Social inequality is the existence of unequal opportunities and rewards for different
social positions or statuses within a group or society.
InequalityistheProblem:What’sOurResponse?

4. Types
Social Inequalities:
 Political Inequality
 Income and wealth inequality
 Inequality of opportunity
 Treatment and responsibility
 Inequality of membership
Some other types:
 Gender inequality
 Racial and Ethnic inequality
 Age Inequality
 Inequalities in Health

5. Types (some other types…)
Between individuals (Global)
Between Countries
Within Countries

6. Inequality in the Headlines

7. Facts and Figures
 On average—and taking into account population size—income inequality increased by 11 per
cent in developing countries between 1990 and 2010
 A significant majority of households in developing countries—more than 75 per cent of the
population—are living today in societies where income is more unequally distributed than it
was in the 1990s
 Evidence shows that, beyond a certain threshold, inequality harms growth and poverty
reduction, the quality of relations in the public and political spheres and individuals’ sense of
fulfilment and self-worth
 There is nothing inevitable about growing income inequality; several countries have managed
to contain or reduce income inequality while achieving strong growth performance
 In a global survey conducted by UN Development Programme, policy makers from around the
world acknowledged that inequality in their countries is generally high and potentially a threat
to long-term social and economic development
 Evidence from developing countries shows that children in the poorest 20 per cent of the
populations are still up to three times more likely to die before their fifth birthday than
children in the richest quintiles
 Despite overall declines in maternal mortality in the majority of developing countries, women
in rural areas are still up to three times more likely to die while giving birth than women living
in urban centres

8. Global poverty concentrated in few countries

9. • 80% live in rural areas
• 2/3 work in agriculture
• Half are children
• Most have little or no
formal education
• Yet, regional differences

11. How To Reduce Inequality?
 We know much about the sources of inequality by economic, race/ethnic, &
immigrant origins
 Ways to reduce inequality are less well understood
 We support research on programs, policies, and practices that reduce
inequality in youth outcomes
 Academic, social, behavioral, and economic outcomes
 Fighting poverty is an important part of reducing inequality, but not all there
is to it
 We’d like to reduce inequality across the spectrum
 One can “reduce inequality” by elevating those lower down or holding back
those who are on top
 Only the former is of interest

12. How To Reduce Inequality?
 “Inequality” has two meanings
 Overall dispersion of an outcome
 Group differences in an outcome
 We’d like to reduce the first and eliminate the second

13. How to reduce inequality?
Country perspective: common elements
 Lessons from country case studies reducing inequality, poverty, and
strong SP premium and growth: Brazil, Cambodia, Mali, Peru, Tanzania
 a. Context can vary: NO EXCUSE FOR NOT TACKLING INEQUALITY
Inequality can be reduced in countries at different stages of
development, pursuing different economic strategies, facing wide-
ranging circumstances
 b. But some factors are common to all: GOOD POLICY CHOICES
 Prudent macroeconomic management, ability to deal with
external shocks, and protracted and coherent economic and
social policies;
 Translate economic growth into inequality reduction through
labor markets (increasing job opportunities, reducing income
gaps)

14. How to reduce inequality?
Country perspective: sustaining success
c. Favorable external conditions help: cheap and abundant credit,
booming trade, high commodity prices plus favorable weather
conditions
d. But good luck is short lived and success under fire recently: by
unsound fiscal decisions (Brazil); conflict (Mali), low productivity (Peru);
unfinished reforms (Tanzania)

15. How to reduce inequality?
Policy perspective
Report focuses on six policy areas
(with good evidence, significant impacts, and little
equity-efficiency tradeoff)
early childhood development and nutrition
universal health care
quality education
conditional cash transfers
rural infrastructure investments
taxation
And some very simple lessons:
Raise productivity of the poor:
Invest in children (ECD and quality education)
Invest in health (universal health care)
Invest in Infrastructure (rural roads, electrification)
Make money work for the poor (CTs and progressive
taxation)

16. ARE THESE REDUCTIONS OF
INEQUALITY ENOUGH TO END
POVERTY
BY 2030 IF GLOBAL GROWTH
CONTINUES SUBDUED?

17. SIMULATING POVERTY BY 2030 UNDER INEQUALITY
SCENARIOS AND CURRENT GLOBAL GROWTH

18. TO END EXTREME POVERTY
BY 2030, WE HAVE TO
REDUCE INCOME INEQUALITY
AT A FASTER PACE