News / Economy

UN Sounds Alarm on Worsening Global Income Disparities

Goldsmiths work on gold ornaments at a workshop in India, Jan. 6, 2014. A new UN report finds widening income disparities in countries like India, which has seen significant levels of economic growth in recent decades.
Goldsmiths work on gold ornaments at a workshop in India, Jan. 6, 2014. A new UN report finds widening income disparities in countries like India, which has seen significant levels of economic growth in recent decades.
Reuters
— The U.N. Development Program warned in a report on Wednesday that income disparities in countries around the world have been worsening, posing new risks for global economic and political stability.

The UNDP warning echoes remarks from U.S. President Barack Obama in his annual State of the Union address on Tuesday, in which he said there was a widening gap between rich and poor in the world's biggest economy and that while the stock market has soared, average U.S. wages have barely budged.

The UNDP report said income inequality increased by 11 percent in developing countries over the two decades between 1990 and 2010. The majority of households in developing countries - more than 75 percent of those nations' populations - are living today in societies where income is more unequally distributed than it was in the 1990s, the report said.

The UNDP says this is a global trend that, if left unchecked, could have dire consequences since it “can undermine the very foundations of development and social and domestic peace.”

The widening income gap comes as some major developing countries - such as China and India - have seen strong economic growth and an overall increase in national wealth. But that wealth has not been evenly distributed, which has contributed to greater inequality in those societies.

“The sharpest increases in income inequality have occurred in those developing countries that were especially successful in pursuing vigorous growth and managed, as a result, to graduate into higher income brackets,” the UNDP report said.

“Economic progress in these countries has not alleviated disparities, but rather exacerbated them,” it said.

In an interview with Reuters, UNDP chief Helen Clark made clear that this negative trend is reversible and that one of the key components is creating quality employment opportunities.

“The key thing is the focus on jobs - jobs, jobs, jobs,” Clark said, adding that it was important for governments to pay attention to ways of improving the skills of its labor force.

She also touched on the subject of the widening income disparities in countries like China and India, which have seen significant levels of economic growth in recent decades.

“It's the nature of the growth,” she said. “If it's uneven growth ... it does create tensions within society because people can see that others are doing much better than them.”

“The China example shows that you get fast growth and poverty reduction, but you also get the growing inequalities,” Clark said. “And this is of concern to China's leadership.”

The report said there was evidence that increases in inequality over the last two decades were mainly due to trade and financial globalization processes that weakened the bargaining position of labor.

Clark said one of the problems with globalization is that it “has proceeded in a very deregulated world.” She advocates more regulation of international trade and financial flows but without eliminating risk and the ability of companies to generate profits.

“It's a balance,” she said. “You have to leave room for risk.”

You May Like

Video On the Scene: In Gaza, Darkness Brings Dread and Death

Palestinians fear nighttime raids, many feel abandoned by outside world, VOA's Scott Bobb reports More

African Small Farmers Could Be Key to Ending Food Insecurity

Experts say providing access to microloans, crop insurance, better storage facilities, irrigation, road systems and market information could enable greater production More

University of Michigan Wins Solar Car Race

Squad guided its student-designed solar-powered vehicle to fifth consecutive time victory in eight-day bi-annual American Solar Challenge More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Vietnamese Staging Chinese Product Boycott After Oil Rig Spati
X
Reasey Poch
July 28, 2014 7:18 PM
China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video Vietnamese Staging Chinese Product Boycott After Oil Rig Spat

China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video ESA Spacecraft to Land on a Comet

After a long flight through deep space, a European Space Agency probe is finally approaching its target -- a comet millions of kilometers away from earth. Scientists say the mission may lead to some startling discoveries about the origins of the water on earth. VOA’s George Putic has more.
Video

Video Young Africans Arrive in US for Leadership Program

President Barack Obama's Young African Leadership Initiative has brought hundreds of young Africans to the United States for a six-week program aimed at building their knowledge and skills in fields such as public administration and business. Out of the 50,000 young Africans who applied for the program, just one percent was accepted. VOA's Laurel Bowman caught up with some of those who made the cut and has this report.
Video

Video In Honduras, Amnesty Rumors Fuel US Migration Surges

False rumors in Central America are fueling the current surge of undocumented young people being apprehended at the U.S. border. The inaccurate claims suggest the U.S. will give amnesty to young migrants from the region. As VOA's Brian Padden reports from Honduras, these rumors trace back to President Obama's 2012 executive order to halt deportations for some young undocumented immigrants already living in the United States.
Video

Video Students in Business for Themselves

They're only high school students, but they are making accessories for shoes, fabricating backpacks and doing product photography - all through their own businesses. It's the result of a partnership between a non-profit organization that teaches entrepreneurship and their schools. VOA's Mike O'Sullivan and Deyane Moses met the budding entrepreneurs near Los Angeles.
Video

Video Astronauts Train in Underwater Lab

In the world’s only underwater laboratory, four U.S. astronauts train for a planned visit to an asteroid. The lab - called Aquarius- is located five kilometers off Key Largo, in southern Florida. Living in close quarters and making excursions only into the surrounding ocean, they try to simulate the daily routine of a crew that will someday travel to collect samples of a rock orbiting far away from earth. VOA’s George Putic has more.

AppleAndroid

World Currencies

EUR
USD
0.7305
JPY
USD
101.53
GBP
USD
0.5830
CAD
USD
1.0656
INR
USD
60.075

Rates may not be current.