inequality had increased between richer and poorer regions since
the start of the global recession and is likely to be exacerbated since
lower government expenditures disproportionately impact poorer
regions.^39 Current debates on reducing development assistance in
donor countries should be considered in this context.
In sum, the ongoing patterns in employment, food and fuel prices,
and public spending do not appear to bode well for equity
outcomes. What is needed is a Recovery for All that ensures that
the economic recovery benefits the most excluded households, and
invests in the future of their members, rather than perpetuating or
accentuating existing disparities (UNICEF 2010c).
- Concluding Remarks
Gross asymmetries in income distribution matter to people. To start
with, they are a sign of social injustice. Irrespective of methodology,
we inhabit a planet where, as an aggregate, the wealthiest quintile of
the population enjoys more than 70% of total income compared to
a meager two percent for the poorest quintile (83% versus one
percent under market exchange rates). We also live in a world where
more than eight million young children die each year (some 22,000
per day), and most of their deaths are preventable (UNICEF
2011:84). Hunger, malnutrition and lack of safe drinking water
contribute to at least half of child mortality, and their incidence is
highly concentrated among the poorer quintiles. The urgency to
address these inequalities cannot be more stressed.
But inequality also matters to economic growth. Developing
countries with higher income inequality tend to grow slower.
Inequality is economically inefficient and dysfunctional:
consumption is concentrated in the top income quintile in most
developing countries, making their markets smaller. In contrast,
most high-income economies developed by expanding domestic
(^39) For example, USAID Administrator Rajiv Shah testified before the United
States House Appropriations State and Foreign Ops Subcommittee on 30 March
2011 that the passed budget bill (to be approved by the Senate) would result in
the deaths of at least 70,000 children who depend on American food and health
assistance globally.