Blog
Working for the Few - Development and Inequality
25th January 2014
Notes from a talk given by Ricardo Fuentes-Nieva (Head of Research at Oxfam) at the Marshall Society Economics Conference in Cambridge in January 2014
Oxfam has a new report entitled Working for the Few - access it here: http://www.oxfam.org/en/policy/working-for-the-few...
Coverage here: http://www.usatoday.com/story/news/world/2014/01/2... and plenty of extensive coverage in other areas. Tim Harford made some criticisms of the report in his recent FT column - click here
The concentration of wealth in the world is enormous - 85 richest people in the world have the same wealth as the bottom 50% of the world's population. Those 85 people can fit into one of the large double-decker buses
The share of total income of top 1% has increased in 20 of 24 leading advanced rich nations - greatest rise has been in the USA
Actual inequality might be even higher as much of the data is based on tax records and those with extensive wealth have a great incentive to hide it!
Increasing inequality in middle income countries already a dominant theme in development policy at the moment
Branko Milosovic has important data on the income and wealth inequality discussion - link to previous blog and presentation
Inequality, Economic Growth and Development from tutor2u
Oxfam's analysis suggests that developed and developing countries can introduce effective policies for reducing inequality over time
- Cracking down on financial secrecy and tax dodging
- Redistributive transfers; and strengthening of social protection schemes
- Investment in universal access to healthcare and education
- Progressive taxation i.e. higher marginal tax rates for wealthier groups
- Strengthening wage floors and worker rights in labour markets
- Removing the barriers to equal rights and opportunities for women
Rejoinder: Bill Gates on dispelling three poverty myths (Economist Free Exchange Blog):
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.