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181. A Brief History of Equality

Author:
Melek Aylin Özoflu and Samet Yılmaz
Publication Date:
12-2022
Content Type:
Journal Article
Journal:
Uluslararasi Iliskiler
Institution:
International Relations Council of Turkey (UİK-IRCT)
Abstract:
Is neoliberalism in a deep crisis or not? If yes, what are the dynamics of this crisis? Does this crisis promise social, political, and economic transformations? If it does, what are the prerequisites? Will global levels of inequality continue to be dispersed? If one desperately searches for an answer to these questions, Thomas Piketty’s latest book, A Brief History of Equality, might offer a possible starting point. Piketty is known for his valuable r>g theory. He explains that return to capital exceeds the rate of economic growth, and it, in return, increases the concentration of wealth. This time, he does not put forward a new theoretical frame. Instead, building upon his r>g theory, he elaborates on his argument for the deepening of inequality in a multi-dimensional and multi-faceted way within a large time frame between 1780 and 2020. As for the primary source of data, he utilises the World Inequality Database (WID.world), which contains evidence about the distribution of income and wealth over the years. It provides the author with a multidisciplinary approach, while interpreting the progress in economic, political, and social developments.
Topic:
Inequality, Economic Growth, Neoliberalism, and Book Review
Political Geography:
Global Focus

182. The Impact of Carbon Taxation and Revenue Redistribution on Poverty and Inequality

Author:
Daniele Malerba, Xiangjie Chen, Kuishang Feng, Klaus Hubacek, and Yannick Oswald
Publication Date:
01-2022
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The global policy debate on just transitions is concerned with how to achieve a socially just and acceptable transition toward a climate-neutral and climate-resilient global economy. At the core of this debate is the assumption that efforts to combat environmental threats will not succeed unless combined with measures to reduce poverty and inequality. Our research explores the potential of carbon fiscal reforms, combining a carbon tax of levels deemed appropriate to achieve climate targets and the transfer of the revenues raised to vulnerable households. The current energy and cost-of-living crisis shows the importance of protecting the poorest and most vulnerable households from price increases. It also shows the difficulty of achieving short- and long-term policy priorities. Despite the current spikes in energy prices, carbon fiscal reforms can achieve both social and environmental goals through simultaneously decreasing emissions and reducing poverty and inequality. They should act as an effective enabler of just transitions. Carbon fiscal reform can avoid some environmental impacts by incentivising reductions in emissions. Carbon pricing has been increasingly advocated and is now at the centre of policy debates, including the UNFCCC Conference of the Parties (COP) and the recent German presidency of the world’s leading industrial nations (G7). But carbon fiscal reforms can also be used to raise revenue from carbon pricing instruments to offset the negative effects of higher prices on poorer households as well as further reaching distributional targets and poverty alleviation. Climate targets are negotiated every year, including at COP, hence it is critical to re-evaluate and improve estimates of the distributional impacts of climate policies such as carbon pricing. Public acceptability of climate policies is key to their implementation, but it depends to a large extent on the perceived fairness of such policies. Recycling revenues from carbon taxes directly back to vulnerable households is likely to gain the approval of a large number of people, especially in low-income countries where the high proportion of the population involved in the informal economy means that lowering income tax does not benefit the poorest and most vulnerable sections of society. But the targeting of these direct transfers needs careful consideration. Here, we assess the impact on poverty and inequality of a global carbon tax and national redistribution of revenues to vulnerable households. We look at different options for such redistribution, including a lump sum payment, the use of current social assistance programmes, and an expansion of social assistance following COVID-19. We find that a carbon tax of US$50/tCO2 without revenue redistribution could increase global extreme poverty, but the redistribution of revenue from such a carbon tax could substantially reduce poverty by between 16% and 27% (110 to 190 million people), and reduce inequality (the average Gini coefficient would decline by between 4% and 8%), depending on the scenario. This shows that the way in which revenue from a carbon tax is redistributed greatly affects its impact, underlining the importance of policy design and targeting mechanisms. The recycling of revenues should also take into account the specific political economy of a country and consider international transfers. These findings provide policy makers with a strong basis for informing discussions, starting off with those at COP27, in which ambitious climate targets and just transition should both remain central goals in the context of the ongoing international energy crisis.
Topic:
Climate Change, Poverty, Inequality, Economy, Carbon Tax, Carbon Emissions, and Revenue Management
Political Geography:
Global Focus

183. The Geopolitics of Inequality: Discussing Pathways Towards a More Just World

Author:
Tricontinental: Institute for Social Research
Publication Date:
10-2022
Content Type:
Working Paper
Institution:
Tricontinental: Institute for Social Research
Abstract:
What are the most characteristic elements of our moment in history? This question has multiple answers. Twenty-first century capitalism reflects an unprecedented pace: rapid international transitions, the shaping of an indisputably multipolar world, significant techno-productive innovations, and new developments in information technology and telecommunications that have changed the ways in which we interact, among many other issues. At times, this context of rapid change seems to obscure one of the most obvious and at the same time outrageous issues of our contemporary existence: the abysmal difference between the living standards of the rich and the poor the world over. Evidently, we are living in an era in which global capitalism has managed to sweep under the rug some of the most detrimental results of the process of social exclusion produced by the emergence of neoliberalism and its successive crises. Discourses that time and again reinforce the hegemonic view of concentrated global capital lead us to normalise the production and reproduction of inequality in contemporary societies, as if they were the result of individual decisions by people who do not try hard enough or of bad governments. Even when the World Bank and the various think tanks of neoliberal globalisation try to present themselves ‘with a human face’, they continue to reproduce these analyses, according to which the solution to reduce the extreme inequality in our world is to grant the same opportunities to all. However, the data does not seem to support this simplistic reading. The richest 1% of the world population today holds more than 70% of global wealth. This means that, as of January 2022, the world’s 10 richest men ‘own more than the bottom 3.1 billion people’, according to an OXFAM report.1 The world’s richest, a kind of plutocracy according to some analysts, have incomes that are unthinkable for 80% of the world population. Among the 2,668 billionaires, many of the top earners are familiar names: Elon Musk (the founder and CEO of Tesla, worth $219 billion), Jeff Bezos (the former CEO of Amazon, with a fortune of $171 billion), Bernard Arnault (the CEO of LVMH, with $158 billion to his name), Bill Gates (the former CEO of Microsoft Corp, worth $129 billion), and Warren Buffett (the CEO of Berkshire Hathaway, worth $118 billion).2 How can we understand inequality other than this approach of blaming the poor for being poor? It is worth keeping in mind that the enormous income and wealth gaps we are experiencing do not only have national origins, but that the reason for these gaps lies largely in the logic of polarisation brought about by capitalism as a world system. Therefore, we must differentiate between the global and the national scales to understand why these processes constantly produce an abyss between rich and poor in contemporary capitalism. That is why Tricontinental: Institute for Social Research’s dossier no. 57 is dedicated to discussing the geopolitics of inequality, the conditions of exclusion that the North imposes on the South and that attempt, by all means, to present the idea that this inequality is temporary and that we must make a greater effort to reduce the gaps.
Topic:
Development, Capitalism, Inequality, and Information Technology
Political Geography:
Global Focus

184. El empoderamiento femenino como estrategia para la igualdad de género. Un análisis multidimensional

Author:
Suelen Emilia Castiblanco Moreno
Publication Date:
02-2022
Content Type:
Policy Brief
Institution:
Centro Interdisciplinario de Estudios sobre Desarrollo (CIDER), Universidad de los Andes
Abstract:
Los Objetivos de Desarrollo del Milenio y, posteriormente, los Objetivos de Desarrollo Sostenible han tenido como elemento en común el reconocimiento de la igualdad de género como factor clave en los procesos de desarrollo. Este documento analiza el empoderamiento femenino como estrategia para el logro de la igualdad de género a partir de una caracterización de la situación de las mujeres en Colombia y la presentación de dos índices para la medición del empoderamiento femenino.. Las reflexiones giran en torno a cómo el monitoreo de las políticas públicas de igualdad de género requiere no solo el seguimiento a indicadores universales estandarizados, sino también herramientas metodológicas que se aproximen a las interrelaciones entre recursos, agencia y resultados que están a la base de relaciones de género más equitativas.
Topic:
Development, Women, Inequality, and Empowerment
Political Geography:
Colombia and South America

185. The great COVID-19 divergence: managing a sustainable and equitable recovery in the European Union

Author:
Gregory Claeys, Zsolt Darvas, Maria Demertzis, and Guntram B. Wolff
Publication Date:
05-2021
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
The COVID-19 pandemic has led to the biggest global recession since the Second World War. Forecasts show the European Union underperforming economically relative to the United States and China during 2019-2023. Southern European countries have been particularly strongly affected. While the ICT sector has benefitted from the COVID-19 crisis, tourism, travel and services have suffered. Business insolvencies have, paradoxically, fallen. While total employment has almost recovered, the young and those with low-level qualifications have suffered employment losses. Inequality could rise. The pandemic may lead to medium to long-term changes in the economy, with more teleworking, possibly higher productivity growth and changed consumer behaviour. Policymakers must act to prevent lasting divergence within the EU and to prevent scarring from the fallout from the pandemic. The first priority is tackling the global health emergency. Second, we warn against premature fiscal tightening and recommend instead additional short-term support from national budgets. Over the medium term, fiscal policymakers will need to gradually move away from supporting companies through subsidies, towards tax incentives for corporate investment. A review of the European fiscal framework is needed to achieve the EU’s green goals more rapidly. The quality of public finances, how policymakers spend resources and the associated reforms are of central importance to prevent scarring. Improving the efficiency of insolvency procedures will be crucial for speedy and effective recovery. Targeted labour market policies for the young and less-qualified are needed. As teleworking becomes a more permanent feature of the EU’s labour markets, it will be crucial to adapt social security and taxation systems in the context of the single market for labour. The EU should resist protectionist calls in the wake of the pandemic. Rigorous competition policy enforcement and an integrated EU market have been beneficial for European convergence and growth. Capital markets have an important role to play in a speedy recovery.
Topic:
Governance, European Union, Inequality, and COVID-19
Political Geography:
Europe

186. The unequal inequality impact of the COVID-19 pandemic

Author:
Zsolt Darvas
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
GDP contractions are typically associated with within-country income inequality increases. While official income inequality data for 2020 will not be available for about two years, the already available employment data for 2020 shows that the difference between highly-educated and low-educated people in terms of job losses is correlated with the economic shock from the COVID-19 pandemic, suggesting that the depth of the economic recession is related to the increase in within-country income inequality in 2020. Scenarios based on historical patterns of recessions and within-country income inequality increases suggest relatively small increases in global income inequality in 2020. Factors mitigating global inequality increases in 2020 include larger GDP per-capita declines in richer advanced countries than in poorer emerging and developing countries, and the positive GDP growth of China, which suggests that within-country inequality in the world’s most populous country might have not changed much in 2020. In contrast, it is quite likely there was a significant increase in European Union income inequality in 2020, partly reversing the decline during the previous decades.
Topic:
Poverty, European Union, Employment, Inequality, and COVID-19
Political Geography:
Europe

187. Crime, inequality and subsidized housing: evidence from South Africa

Author:
Roxana Elena Manea, Patrizio Piraino, and Martina Viarengo
Publication Date:
04-2021
Content Type:
Research Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
We study the relationship between housing inequality and crime in South Africa. We create a novel panel dataset combining information on crimes at the police station level with census data. We find that housing inequality explains a significant share of the variation in both property and violent crimes, net of spillover effects, time and district fixed effects. An increase of one standard deviation in housing inequality explains between 9 and 13 percent of crime increases. Additionally, we suggest that a prominent post-apartheid housing program for low-income South Africans helped to reduce inequality and violent crimes. Together, these findings suggest the important role that equality in housing conditions can play in the reduction of crime in an emerging economy context.
Topic:
Apartheid, Crime, Economics, Law, Inequality, Violence, and Legal Sector
Political Geography:
Africa and South Africa

188. Establishing the empirical basis for tracing the development outcomes of agricultural investments

Author:
Helle Munk Ravnborg, Bernard Bashaasha, Rikke Broegaard, Michael Byaruhanga, Evelyne Lazaro, Festo Maro, Khamaldin Mutabazi, Teddy Nakanwagi, and David Tumusiime
Publication Date:
04-2021
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
This DIIS Working Paper describes the design of a questionnaire survey developed and implemented in order to trace the development outcomes of foreign agricultural investments in six research locations in Tanzania and Uganda. The questionnaire survey was conducted as part of the Agricultural Investors as Development Actors (henceforward AIDA) research programme which, in particular, focuses on development outcomes in terms of employment, migration, food security and wider dynamic economic effects, such as access to technology, infrastructure and markets; land markets and perceived security of land tenure; and water access and security of tenure. The working paper which serves as a methodological reference document describes the approach which was employed for drawing six independent samples of 400 respondents each, as well as the approach developed for computing a foreign agricultural investment exposure index and for computing a locally informed household poverty index.
Topic:
Agriculture, Climate Change, Development, Economics, Emerging Markets, Environment, Poverty, Water, Food, Governance, Inequality, Investment, and Land Rights
Political Geography:
Sub-Saharan Africa and Africa

189. Eliminating child marriage in Ethiopia

Author:
Fana Gebresenbet
Publication Date:
06-2021
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
How can we explain the large gap between national legal and policy commitments to reduce and eliminate gender-based violence (GBV) and the reality and practice of GBV in Ethiopia? Hitherto explanations mainly centre on the conflict between and social and official norms, and the stubbornness of the former. In this new DIIS Working Paper, Fana Gebresenbet tries to go beyond this dichotomy to examine what happens in the ‘in-between spaces’. While the stubbornness of social norms only brings home to us the slow pace of change, it does not tell us what guides the emerging practices that contribute towards change. Instead, ‘practical norms’ are used here as an analytical tool to examine what happens as we move along the continuum from social to official norms. This helps us capture why routinised, coordinated and socially acceptable new practices occur before the major social norms change. This work is part of GLOW (Global Norms and Violence Against Women in Ethiopia), a research programme financed by the Danish Ministry of Foreign Affairs and coordinated by DIIS.
Topic:
Development, Diplomacy, International Organization, Poverty, Children, Women, and Inequality
Political Geography:
Africa and Ethiopia

190. Risks of technology use in humanitarian settings: Avoiding harm, delivering impact

Author:
Adam Moe Fejerskov, Maria-Louise Clausen, and Sarah Seddig
Publication Date:
08-2021
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
The use of emerging technology in humanitarian settings carries significant risks. The complexity of these risks entails a need to understand and imagine risks beyond those commonly associated with a particular technology, field, or implementing organization. Recommendations: Apply an extensive interpretation of what risks may look like, where, when, for whom, and how they might occur. The indiscernible nature of risks related to technology use means identifying or imagining these moves beyond existing organizational experiences. Recognize that technology-related risks can emerge across the data chain and are not only relevant for engineering or operational staff.
Topic:
Security, Democratization, Development, Migration, Poverty, Science and Technology, Capitalism, Inequality, Conflict, Borders, Violence, and Peace
Political Geography:
Global Focus