According to a newly released UN study, inequality is growing for more than 70 percent of the global population, exacerbating the risks of divisions and hampering economic and social development.
The World Social Report 2020, published by the UN Department of Economic and Social Affairs (DESA), shows that income inequality has increased in most developed countries, and some middle-income countries – including China, which has the worldās fastest-growing economy.
The challenges are underscored by UN chief AntĆ³nio Guterres in the foreword, in which he states that the world is confronting āthe harsh realities of a deeply unequal global landscapeā, in which economic woes, inequalities, and job insecurity have led to mass protests in both developed and developing countries.
āIncome disparities and a lack of opportunitiesā, he writes, āare creating a vicious cycle of inequality, frustration, and discontent across generations.ā
The study shows that the richest one percent of the population are the big winners in the changing global economy, increasing their share of income between 1990 and 2015, while at the other end of the scale, the bottom 40 percent earned less than a quarter of the income in all countries surveyed.
One of the consequences of inequality within societies, notes the report, is slower economic growth. In unequal societies, with wide disparities in areas such as health care and education, people are more likely to remain trapped in poverty, across several generations.
Between countries, the difference in average incomes is reducing, with China and other Asian nations driving growth in the global economy. Nevertheless, there are still stark differences between the richest and poorest countries and regions: the average income in North America, for example, is 16 times higher than that of people in Sub-Saharan Africa.
Whilst technological innovation can support economic growth, offering new possibilities in fields such as health care, education, communication and productivity, there is also evidence to show that it can lead to increased wage inequality, and displace workers.
Rapid advances in areas such as biology and genetics, as well as robotics and artificial intelligence, are transforming societies at pace. New technology has the potential to eliminate entire categories of jobs but, equally, may generate entirely new jobs and innovations.
For now, however, highly skilled workers are reaping the benefits of the so-called āfourth industrial revolutionā, whilst low-skilled and middle-skilled workers engaged in routine manual and cognitive tasks, are seeing their opportunities shrink.
To Ā find out more about the study visit: social.un.org/worldsocialreport
