Income
inequality has a "statistically significant impact" on economic
growth, according to research by the Organisation for Economic Co-operation and
Development (OECD).
In
the UK, rising inequality cost the economy almost nine percentage points of GDP
growth between 1990 and 2010, the think tank said.
The
US lost almost seven points.
The
OECD also found that redistribution of wealth via taxes and benefits does not
hamper economic growth.
"This
compelling evidence proves that addressing high and growing inequality is
critical to promote strong and sustained growth and needs to be at the centre
of the policy debate," said OECD's secretary general, Angel Gurría.
"Countries
that promote equal opportunity for all from an early age are those that will
grow and prosper."
Widening gap
In
the 34 countries that are members of the OECD, the gap between rich and poor is
at the highest level in 30 years, the group said.
The
richest 10% in those states earn, on average, 9.5 times the poorest.
In
the 1980s, they earned 7 times as much.
The
only countries in which the OECD found inequality had fallen were Greece and
Turkey.
Education
A
lack of investment in education was the key factor behind rising inequality,
the OECD said.
Fewer
educational opportunities for disadvantaged individuals had the effect of
"lowering social mobility and hampering skills development," the
report warned.
It
also said that those whose parents have low levels of education suffer most
when inequality rises, whereas family background matters less to those from a
more educated social sphere.
The
OECD called for policymakers to do more than just implement anti-poverty
programmes.
"Policy
also needs to confront the historical legacy of underinvestment by low income
groups in formal education," it said.
"Strategies
to foster skills development must include improved job-related training and
education for the low-skilled, over the whole working life."
BBC
Business
No comments:
Post a Comment