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[Combating poverty and inequality] Income inequality and structural change
Bangura, Yusuf
Bangura, Yusuf
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"Inequality is considered by some to be of little social concern. As long as poverty is minimized, it is argued, there should be no principled objection to the unbridled gains of the very rich. In some hands, this argument becomes one of active advocacy: that the concentration of wealth should be cultivated to generate savings, investment and growth.1 Yet the fact that high levels of inequality are often found in the poorest countries exposes the weakness of this argument. Evidence suggests, in fact, a two-way causal relationship between poverty and inequality. There are additional important grounds for a concern with inequality. The international human rights framework commits governments to uphold equality in civil and political rights and to take steps progressively to achieve this. Furthermore, some notion of equity is central to the construction of socially inclusive states and the realization of substantive citizenship.2 High levels of inequality are often found in the poorest countries, and evidence suggests a two-way causal relationship between poverty and inequality Easing inequality has, however, been marginal to the poverty reduction agenda of the international development community in recent years. Apart from a commitment to eliminate gender disparities in primary and secondary education, the Millennium Development Goals (MDGs) do not explicitly focus on inequalities, despite the affi rmation of the principles of equality laid out in the Millennium Declaration. More recently, several reports3 have underscored the intrinsic value of equality as well as its relevance for achieving growth and reducing poverty. But the view articulated in the World Bank’s World Development Report 2006 emphasizes equality of opportunities as opposed to outcomes. This argument justifi es unequal outcomes if the processes that generate them are “fair”,4 and advocates interventions only to protect those who fall below an absolute threshold of need. Such a view results in a weak redistributive agenda that shies away from any serious consideration of wealth and income redistribution now, emphasizing instead investments in opportunities that might produce a more equitable future.5 This chapter examines the causes, patterns and dynamics of inequality, with a particular focus on inequalities of income and wealth, often referred to as vertical inequalities. Inequalities among groups (horizontal inequalities) or based on factors that determine identity, such as ethnicity and gender, will be dealt with in chapters 3 and 4. In this and subsequent chapters, emphasis is placed on both the intrinsic and instrumental value of redistributive policies and processes that lead to equitable outcomes."(pg 59)
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Book chapter
Date
2010
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9789290850762
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With permission of the license/copyright holder