What are the main issues on the current agenda for international cooperation on inequality?
The agenda for international cooperation in the fight against inequality includes five overarching issues:
The data
Evidence is needed to better describe and measure inequalities in order to implement appropriate policies to reduce inequalities. However, there is a dearth of such data. This lack is related to the following factors:
- Lack of regular household or individual surveys that collect information on income, consumption and access to basic services that allow comparisons over time and across countries;
- Lack of panel data that provide insight into income dynamics and trajectories;
- The extreme segments of the distribution are rarely captured in the data.
The lack of data on inequalities can also be explained by the financial aspect as such surveys are usually very expensive.
Social protection programmes
This type of programme makes it possible to reduce both poverty (through policies to protect the most vulnerable populations) and inequality (through redistributive policies). Nevertheless, the redistributive dimension of social protection programmes depends largely on the will of governments and civil society, and remains insufficient for the time being. The prospect of setting up universal coverage based on the principle of solidarity-based financing could thus be a lever to overcome these shortcomings and encourage the development of the middle classes and the strengthening of solidarity.
The "Fourth Industrial Revolution”
This expression by Klaus Schwab refers to the process of industrial digitalization, reflected in a fusion of technologies that erases the boundaries between the physical, digital and biological spheres. All industrial revolutions have profoundly transformed societies. However, this latest revolution is special because it is characterized by a highly knowledge-intensive production of added value, which implies that the skill premium will increase even more, and that inequalities will continue to grow, contributing to the concentration of wealth at the top. Massive investment in education (at all levels) and the establishment of monitoring mechanisms are therefore necessary to enable the greatest number to benefit from this revolution in order to reduce inequalities between individuals and between territories.
Climate change
Climate change and inequality are deeply intertwined on several levels:
- The richest people pollute the most, but the effects of climate change are felt most by the most vulnerable populations;
- Policies to reduce global warming can increase inequality, such as the carbon tax;
- Conversely, policies to combat inequality can have an impact on global warming, for example through fossil fuel subsidies for the most vulnerable populations.
As inequality weakens social cohesion, it is likely that those states most affected by the effects of climate change and inequality will be reluctant to implement efficient environmental policies. This vicious circle could thus be mitigated by just transition policies, i.e. policies that recognize that justice and equity must be an integral part of the transition to a low-carbon world.
Gender inequalities
Educational inequalities between boys and girls (enrolment, years of schooling, primary school completion rates) have been considerably reduced over the past two decades. However, they remain significant in the Middle East, North Africa, South Asia and some parts of sub-Saharan Africa. Moreover, this reduction in gender inequalities has not yet translated into equality in the labour market, particularly in terms of participation or wages. This is partly due to the fact that women are predominantly represented in the informal sector, making them more vulnerable and leading to income inequalities compared to men.