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The yawning divide between big city and countryside Tanzania

Nadia Belhaj Hassine's picture

Achieving shared prosperity, one of the World Bank’s twin-goals, isn’t just a middle-income country’s preoccupation. It has a special resonance in Tanzania, a US$1,000 per capita economy in East Africa.

Tanzania has seen remarkable economic growth and strong resilience to external shocks over the last decade. GDP grew at an annualized rate of approximately 7 percent.  Yet, this achievement was overshadowed by the slow response of poverty to the growing economy. The poverty rate has remained stagnant at around 34 percent until 2007 and started a slow decline of  about one percentage point per year, attaining 28.2 percent in 2012. To date, around 12 million Tanzanians continue to live in poverty, unable to meet their basic consumption needs, and more than 70 percent of the population still lives on less than US$2 per day. Promoting the participation of the poor in the growth process and improving their living standards remains a daunting challenge.

Could the UN’s new Progress of the World’s Women provide the foundations for feminist economic policy?

Duncan Green's picture

London launch of UN Women’s new flagship report,Progress of the World’s Women 2015-16Yesterday I went to the London launch of UN Women’s new flagship report, Progress of the World’s Women 2015-16, in the slightly incongruous setting of the Institution of Civil Engineers – walls adorned with portraits of bewigged old patriarchs from a (happily) bygone era (right).

The report is excellent. These big multilateral publications are usually a work of synthesis, bringing together existing research rather than breaking new ground. And that’s fine; it’s really important that a UN body has pulled such an excellent range of research together and made it accessible to policy makers. Gender and development debates suffer from a fair number of unsubstantiated claims and pretty dodgy stats (don’t get me started), and this report feels like something you can trust – I hope someone will go through it and pull out every major stat and graphic.

But the overall approach is both new and exciting, in that it applies an explicitly human rights approach to economic policy. Laura Turquet, UN Women researcher and report manager, summarized this as ‘bringing together human rights and economic policy-making to ask ‘what is the economy for?’’

This is a big deal, because the normal approach to gender and economic policy is incredibly reductive and instrumental – educate girls and get women into the workforce because it boosts growth! It ignores whether that will improve the lives of the said women or just pile more burdens onto their pre-existing roles as carers (of children, old people, neighbours), home maintainers etc etc.
 

Weekly Wire: The Global Forum

Roxanne Bauer's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

Tomorrow’s world: seven development megatrends challenging NGOs
The Guardian
As we move into 2015, many UK-based NGOs are wondering how to meet the challenges of a crucial year. What is the unique and distinct value that each organisation, and the UK sector as a whole, brings to international development, and how might this change in future? To help the sector get on the front foot we have identified seven “megatrends” and posed a few questions to highlight some of the key choices NGOs might need to make. At the end of next week we’ll be concluding a consultation with DfID on the future of the sector – all your thoughts are welcome.

Why emerging markets need smart internet policies
Gigaom
The Alliance for Affordable Internet (A4AI) has released its latest study into, well, the affordability of internet access. The study shows how big the challenge is on that front in emerging markets – for over two billion people there, fixed-line broadband costs on average 40 percent of their monthly income, and mobile broadband costs on average 10 percent of their monthly income. The United Nations’ “affordability target” for internet access is five percent of monthly income, so there’s clearly a ways to go in many developing countries. Almost 60 percent of global households are still unconnected and, unsurprisingly, those who can’t afford to get online tend to be poor, in rural communities and/or women.

The global women’s rights movement: What others can learn, a progress stocktake and some great videos for IWD

Duncan Green's picture

Duncan Green reviews the balance of achievements on gender equality as summarized in a new paper from Gender and Development Network and shares some videos in honor of International Women's Day.

Egyptian woman celebrates International Women's DayIt was International Women’s Day on Sunday, which is swiftly followed by celebrations around the 20th anniversary of the 1995 Beijing conference (I still remember the buzz from women returning from that) and the start of the 59th  Commission on the Status of Women at the UN – an annual spotlight on progress (or otherwise) on women’s rights.

Gender is a big deal in Oxfam, and I’ve often been struck by what the rest of the development business can learn from progress on gender rights, and the activism that underpins it. For starters:

Power begins with ‘power within’, when previously marginalized people kindle their sense of rights, dignity and voice. Far more of our work should start there.

Norms really matter. Gender activism shows just how shallow a lot of advocacy can be, when it concentrates on the ephemera of policy, and ignores the social norms that underpin identity and injustice. And international movements can have real impact on those norms.

Stamina: any struggle worth its salt takes decades – you don’t just look for a quick win and move on.

The world beyond money – work on areas such as the ‘care economy’ highlights just how much of what really matters lies outside the monetary economy that dominates thinking on development. We should be talking about shame and joy as much as about income and assets.

(I also happen to think the gender activists could learn useful lessons from others, but that’s another post.)

As for IWD, first some heavy policy, then some fun videos.

How to narrow the gap between the rich and poor in Malaysia?

Frederico Gil Sander's picture

If you could make one New Year’s wish for your country, what would it be?

For many Malaysians, Prime Minister Najib Razak’s wish for “a safer, more prosperous, and more equal society” likely resonated with their hopes for 2015.

Malaysians appear to be increasingly concerned about income inequality. According to a 2014 Pew Global survey, 77% of Malaysians think that the gap between the rich and poor is a big problem. The government has acknowledged that inequality remains high, and that tackling these disparities will be Malaysia’s “biggest challenge” in becoming a high-income nation.

How can Malaysia narrow the gap between the rich and poor? Global experience suggests two possible levers to achieve a more equitable income distribution.

Weekly Wire: The Global Forum

Roxanne Bauer's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

#Davosproblems: The financial crisis isn‘t over, and the inequality crisis is just beginning
Quartz
The World Economic Forum’s annual meeting has kicked off in Davos, Switzerland under the banner of “The New Global Context.” Falling in the long shadow of the financial crisis, the WEF’s theme reflects as much hope as a creeping sense that economic turmoil is the new normal. Some seven years into the current crisis, the participants at Davos are acutely aware that the world economy still hasn’t recovered its past momentum.

The Power of Market Creation, How Innovation Can Spur Development
Foreign Affairs
Most explanations of economic growth focus on conditions or incentives at the global or national level. They correlate prosperity with factors such as geography, demography, natural resources, political development, national culture, or official policy choices. Other explanations operate at the industry level, trying to explain why some sectors prosper more than others. At the end of the day, however, it is not societies, governments, or industries that create jobs but companies and their leaders. It is entrepreneurs and businesses that choose to spend or not, invest or not, hire or not.

Davos: New Briefing on Global Wealth, Inequality and an Update of that 85 Richest = 3.5 Billion Poorest Killer Fact

Duncan Green's picture

This is Davos week, and over on the Oxfam Research team’s excellent new Mind the Gap blog, Deborah Hardoon has an update on the mind-boggling maths of global inequality. 

 
 



Wealth data from Credit Suisse, finds that the 99% have been getting less and less of the economic pie over the past few years as the 1% get more. By next year, if the 2010-2014 trend for the growing concentration of global wealth is to continue, the richest 1% of people in the world will have more wealth than the rest of the world put together.


Measurements of wealth capture financial assets (including money in the bank) as well as non financial assets such as property. It is not just inefficient to concentrate more and more wealth in the hands of a few, but also unjust. Just think of all the empty properties bought by wealthy people as investments rather than providing housing for those in need of a home. Think of the billionaire chugging out carbon emissions flying around in a private jet, whilst the poorest countries suffer most from the impacts of climate change and the poorest individuals living want for a decent bicycle to get to school or work.
 

Devising Minimum Wages in Emerging Markets

Jobs Group's picture

Given the pros and cons of minimum wages in advanced economies, let alone in emerging markets, what types of information should policy makers be armed with? In this blog, we speak with two experts on the topic – John T. Addison (Professor of Economic Theory, University of South Carolina) and David Neumark (Professor of Economics, University of California, Irvine) – both of whom stress the importance of weighing the trade-offs for their own countries.

Raising awareness about Wisconsin's minimum wage, Milwaukee, August 1, 2012. Photo: Flickr/wisconsinjobsnow (Wisconsin Jobs Now)

It’s Everybody’s Business – So Make Social Issues Strategic: The Private Sector’s Stake in Fighting Gender-Based Violence

Christopher Colford's picture

If you’re in the private sector, and if you somehow imagine that social issues don’t have anything to do with your business, then you’d better think again. The dollars-and-cents costs of chronic social problems and dysfunctional behavior have a direct impact on private-sector productivity and profitability.

As Harvard Business School professor Michael Porter told a World Bank Group audience not long ago, explaining his theory of “creating shared value”: If business leaders are serious about ensuring future private-sector-led growth – and about the long-range stability of the economy – then the corporate sector had better prioritize pro-active steps to address serious social issues as a significant part of their strategy.

Social issues might not readily rise to the top of corporate leaders’ in-boxes, since many hard-headed businessmen – and I use the suffix “men” advisedly – might presume that “soft” human concerns aren’t central to day-to-day business operations. Yet the painful human toll inflicted by social dysfunction is everybody’s business. Corporate executives who truly aim to fulfill a positive leadership role in society, to which they so often aspire rhetorically, have a duty to raise their voices about the many kinds of social trauma that impede socioeconomic progress.

If a sense of social responsibility isn’t enough to get corporate leaders thinking pro-actively, they should at least consider their business’ long-term enlightened self-interest. A workforce that’s de-motivated or demoralized – or, worse, physically injured or emotionally abused – will suffer lower morale and higher absenteeism, will trigger higher health-care costs, will be distracted from seizing new business opportunities, and will fall short of fulfilling its full productive potential. That economic reality should spur the private sector to take constructive, preventive action.

An event on Wednesday at the World Bank Group will offer a reminder of how one vicious form of extreme antisocial behaviorviolence against women and girls – acts as a drag on society, a drain on the economy and an impediment to achieving every development priority. The 2 p.m. event in the J Building auditorium will launch a new World Bank Group report – the “Violence Against Women and Girls Resource Guide” – that surveys a wide range of analyses on the human suffering and social pain caused by gender-based violence.

Jointly sponsored by the Bank Group, the Inter-American Development Bank and the Global Women’s Institute based at George Washington University, the afternoon event will follow a morning panel discussion – at 10 a.m. in GWU’s Jack Morton Auditorium – featuring the authors of a landmark series of analyses of gender-based violence in The Lancet, the UK's pre-eminent medical journal.

Recognizing gender-based violence as a medical and public-health emergency – and reinforcing the World Health Organization’s recent declaration that gender-based violence is a global threat “of epidemic proportions” – The Lancet’s special edition is blunt about the grim toll of violence that deliberately victimizes women and girls: “Every day, millions of women and girls worldwide experience violence. This abuse takes many forms, including intimate physical and sexual partner violence, female genital mutilation, child and forced marriage, sex trafficking, and rape.”

Yet the special edition of The Lancet asserts that this social scourge is preventable. The analyses “cover the evidence base for interventions, discuss the vital role of the health sector in care and prevention, show the need for men and women to be involved in effective programmes, provide practical lessons from experience in countries, and present a call for action with five key recommendations and indicators to track progress.”

In a parallel, practical initiative, the government of the United Kingdom – through its Public Health England arm – has published a “toolkit” to help businesses identify, analyze and take protective action for those who may have been victimized by domestic abuse, psychological trauma or gender-based violence. PHE’s toolkit and awareness-building initiatives redouble the efforts of the UK’s Corporate Alliance Against Domestic Violence.

In the spirit of the United Nations’ recent observance of the International Day for the Elimination of Violence Against Women – and occurring amid the current “16 Days of Action Against Gender Violence” campaign – the Wednesday discussions with experts from The Lancet, the Global Women’s Institute, the IDB and the World Bank Group will help highlight the pervasive gender bias that hardens social inequality, and that can take the extreme form of violence targeting women and girls.

Corporate leaders who aim to take a leadership role in society have an opportunity to demonstrate their commitment: by rededicating their organizations to activist steps to mend a society too often torn by violence and the causes of violence: economic insecurity, social-class stratification, winner-take-all rapacity, misogyny, discrimination and exclusion – all of which threaten the ideals of eradicating extreme poverty and building shared prosperity.

Wednesday’s forums on gender-based violence will remind us that building a stronger, safer, more inclusive society is everybody’s business. That challenge should inspire private-sector leaders to include the long-term welfare of society as one essential factor as they calculate their bottom-line summation of success.

 

#TakeOn Violence Against Women and Girls

Demystifying the Impact of Minimum Wages

Jobs Group's picture

In recent years, the minimum wage has become an increasingly popular for reducing inequality in many emerging markets, while others are still weighing whether to adopt one. But a lot of confusion still surrounds the impact of minimum wages in advanced economies, let alone in the emerging markets. In this blog, we speak with two experts on the topic: David Neumark (Professor of Economics, University of California, Irvine) and John T. Addison (Professor of Economic Theory, University of South Carolina). They both point to some job loss, especially for skilled workers, in advanced economies.

Singapore Clarke Quay Elgin Bridge underpass 2013 (by RSCLS street art collective). Photo: Flickr/66944824@N05 (Denis Bocquet)


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