Economic inequality


Economic inequality has always prevailed in human society in one form or the other

However, since the process of globalisation set in motion in the recent past, the balance has been tilting more and more in favour of the rich, resulting in an ever-widening gulf between the haves and have-nots

Now the number of poor worldwide has increased to unheard of levels, making it increasingly difficult for those at lower rungs of income to access even essential for survival

At present, 1% of the world’s population owns 40% of its economic resources

The increasing economic inequality is, however, more pronounced in Third World countries than ever before

The UNDP’s latest National Human Development Report places Pakistan’s powerful elite in an uncomfortable moral dilemma as it says this class has cornered economic privileges amounting to $17

4 billion or 6% of GDP

The beneficiaries of the lop-sided distribution of the national wealth are the corporate sector, feudal lords, politicians and other influential classes

The report says stark disparities concerning income and economic opportunities exist between the mentioned powerful elites and people belonging to other classes

It highlights that policies often result in exacerbating inequalities instead of reducing them

The elite use their power, mostly furtively, to obtain the lion’s share in the national income, leaving little for the less influential and only crumbs for the have-nots

According to the report released last week, the corporate sector is the biggest beneficiary of the unequal system

They get inputs cheap and sell their output at higher prices, and enjoy preferential treatment in access to land, capital and services

They acquire around $4

7 billion in benefits

Next on the list of beneficiaries are feudal lords

They are a mere 1

1% of the total population but they own 22% of all agricultural lands

The UNDP regional chief has discussed issues related to increasing economic inequality in Pakistan with the PM and his cabinet colleagues

They agreed on the causes, analysis and conclusions arrived at in the report, and pledged to take corrective steps as recommended in the report

 



Date:18-Apr-2021 Reference:View Original Link