CHILD POVERTY AND INEQUALITY: THE WAY FORWARD

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macroeconomic and sector policies that guide national frameworks,


and advocating for actions, budgets and investments that contribute


to fulfilling the best interest of the child. As of 2011, 111 UNICEF


country offices are involved in social budgeting and child-friendly


public finance; 55 UNICEF country offices are undertaking analysis


of multidimensional child poverty and inequalities/disparities and


advocating policies to reduce them; 88 UNICEF country offices are


engaged in building social protection systems; and 44 UNICEF


country offices are tackling issues of economic policy reform and


children.


More recently, concerned with the implications of worsening


inequity in many countries, UNICEF is intensifying its efforts to


address bottlenecks to the realization of children’s rights. A key area


to ensure equitable outcomes for children is the lack of an enabling


policy environment. Indeed, history shows that economic policy


frameworks focusing on growth but not on redistribution have


resulted in widening inequity, which in turn is bad for long-term


growth, and that austere structural adjustments risk disrupting


essential social services, which could have largely irreversible


adverse impact on children’s survival and development, as we


demonstrated in 1987 with Adjustment with a Human Face.


This focus on equity cannot be more pertinent today, as an


increasing number of developing countries are undertaking austerity


adjustments with potentially adverse implications for equity and


children. UNICEF’s latest report, “Austerity Measures Threaten


Children and Poor Households,” finds that the scope of austerity is


severe and widening quickly, with 70 countries reducing spending


by nearly three percentage points of GDP during 2010, and 91


planning cuts in 2012. Moreover, nearly a quarter of developing


countries are undergoing excessive fiscal contraction, defined as


slashing public spending to below pre-crisis levels.


If history is any guide, planned austerity measures will risk removing


essential support to the most vulnerable when their need for public


assistance is urgent and great, thus further exacerbating existing


inequalities. It is thus critical for UNICEF and its partners to


engage in international advocacy to highlight these risks and show

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