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1. Regionalism and the Agenda 2030: Inequality and Decent Work in Mexico

Author:
Karina Lilia Pasquariello Mariano, Roberto Goulart Menezes, and Marcela Franzoni
Publication Date:
12-2024
Content Type:
Journal Article
Journal:
Revista Brasileira de Política Internacional (RBPI)
Institution:
Instituto Brasileiro de Relações Internacionais (IBRI)
Abstract:
The present study analyzes the limits of regionalism in achieving SDG 8, with a focus on the Mexican reality. It is based on the hypothesis that the role of the national government is decisive for incorporation of the Agenda 2030 in cases of regionalism based on an intergovernmental dynamic. We argue that NAFTA had a limited impact on improving working conditions in Mexico, as it only affected export-oriented regions and sectors. Since 2019 there has been an increase in the minimum wage, which can be explained not only by enforcing the USMCA, but also by a compatibility between internal and external agendas. Therefore, the case of Mexico allows us to affirm that the national government was decisive for the incorporation of the Agenda 2030 in the context of intergovernmental agreements.
Topic:
Inequality, NAFTA, Regionalism, Work, and Agenda 2030
Political Geography:
Latin America and Mexico

2. How to create decent work for women: Policy lessons for low- and middle-income countries

Author:
Ashwini Deshpande, Janneke Pieters, Kunal Sen, and Maria C. Lo Bue
Publication Date:
03-2024
Content Type:
Policy Brief
Institution:
United Nations University
Abstract:
Despite advancements for gender equality in some spheres, labour market outcomes for women continue to be worse than for men. Gender gaps in pay, labour force participation rates, and measures of job quality are stubbornly persistent and continue to hamper women’s economic empowerment globally. Economic development and social change should improve women’s labour market outcomes, but even with large-scale public policy actions, gender-based inequalities are difficult to address.
Topic:
Women, Inequality, Income Inequality, Economic Development, Labor Market, and Gender
Political Geography:
Global Focus

3. Labour market inequality in two Asian giants Indonesia and India compared

Author:
Kunal Sen
Publication Date:
05-2024
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
We examine the nature of labour market inequality in Indonesia and India, using a common conceptual approach drawing from the job ladder framework. In the framework, we differentiate between self-employment and wage-informal and between formal, upper tier informal, and lower tier informal jobs. We find that both countries have a large proportion of workers in lower tier jobs, though the importance of wage-employment is larger in Indonesia. There are more workers in formal wage-employment in Indonesia than India. There are also sharp disparities in the earnings of workers in different tiers of the labour market in Indonesia and India, and there is limited evidence of convergence of the earnings of the lower tier informal workers to that of formal workers, at least for Indonesia. We also find that gender and educational level are important correlates of work status in both countries. Females and less educated workers occupy the lower tiers of the labour markets in the two countries.
Topic:
Employment, Inequality, Economy, Labor Market, and Informal Economy
Political Geography:
South Asia, Indonesia, India, and Asia

4. Not without her: A roadmap for gender equality and Caribbean prosperity

Author:
Wazim Mowla and Valentina Sader
Publication Date:
03-2024
Content Type:
Special Report
Institution:
Atlantic Council
Abstract:
The Caribbean is one of the most vulnerable regions globally. It harbors economies that are open-faced and import-dependent, making it susceptible to the ravages of climate change, fluctuating commodity prices, and inflationary pressures. While governments and financial institutions grapple with these perpetual stresses, it is the Caribbean citizens, particularly women and girls, who bear the heaviest burden. Nestled in this uniquely vulnerable region, women and girls face a multitude of challenges, demanding comprehensive support from both governments and financial institutions to enhance their resilience and opportunities throughout society. Their integration across various sectors, including government, business, and local organizations, emphasizes that addressing gender challenges cannot occur in isolation. The global issues looming over the Caribbean magnify the specific hurdles confronting women and girls. From gender-based violence (GBV) and economic barriers to limited political influence and the disproportionate impacts of climate change, the challenges intertwine, creating a crisis of gender inequality and inequity across the Caribbean. This publication compiles findings from a yearlong consultative effort, revealing that the challenges faced by women and girls are rooted in societal perceptions of their roles and restricted access to tools and resources. To overcome these barriers, a fundamental reshaping of social norms, alongside political and financial institutions, is imperative. Moreover, integrating women and girls into the development model aligns with the region’s broader ambitions of achieving UN Sustainable Development Goals (SDGs), unlocking untapped human capital and fostering long-term prosperity. In collaboration with the UN Women Caribbean Multi-Country Office, the Atlantic Council’s Adrienne Arsht Latin America Center and its Caribbean Initiative embarked on a year-long partnership. This initiative aimed to address GBV, economic empowerment challenges, limited political influence, and the disproportionate effects of climate change facing women and girls in the Caribbean. The extensive consultative process involved roundtable discussions, capacity-building sessions, and one-on-one consultations, shedding light on the preconceptions held by both men and women toward women and girls in Jamaica and Guyana during 2023. The partnership has honed in on social norms as a focal point, recognizing their impact on perceptions and discussions about the challenges faced by women and girls.
Topic:
Climate Change, Women, Inequality, Economy, Resilience, and Gender
Political Geography:
Latin America and Caribbean

5. Guide for the Social Inclusion of Formerly Incarcerated Individuals

Author:
Melina Risso, Vivian Calderoni, Camila Nadalini de Godoy, Carolina Loeb, Marina Alkmim, and Julia Quirino
Publication Date:
06-2024
Content Type:
Special Report
Institution:
Igarapé Institute
Abstract:
The social inclusion of formerly incarcerated individuals is a global challenge that requires reforms in the justice system, strengthening of the rule of law, and the implementation of specific public policies. This guide presents a synthesis of strategies adopted by programs on the topic in different countries, including Brazil, which can serve as a model for implementing and improving initiatives nationwide. Brazil ranks third in the world in the absolute number of incarcerated individuals, reflecting social, racial, and educational inequalities present in its prison population and highlighting the selectivity of the justice system, which tends to predominantly imprison young, low-educated Black individuals. Upon release, former prisoners face numerous challenges, such as difficulty accessing support and assistance programs due to limited availability, which is generally concentrated in capital cities. It is necessary to invest in overcoming this scenario by implementing and improving programs and strategies, considering regional specificities and significant variations in incarceration rates among states. Without preparation and material, financial, psychological, and social support, the challenges for social reintegration become often insurmountable obstacles. This not only makes communities more insecure but also contributes to criminal recidivism, establishing a vicious cycle of crime and social rejection. This guide was developed to support the reversal of this scenario by adopting a rights-guarantee perspective. Its objective is to assist in the implementation and improvement of initiatives directed at the social inclusion of formerly incarcerated individuals across the country. Based on the analysis of 123 national and international programs for the attention of former prisoners, this document presents the purposes of these programs and details the strategies adopted.
Topic:
Prisons/Penal Systems, Inequality, Public Policy, Labor Market, Inclusion, Reintegration, and Criminal Recidivism
Political Geography:
Brazil and South America

6. Social Reintegration of Former Inmates: Networked Strategies for Promoting Public Policies and Strengthening Civil Society Organizations

Author:
Melina Risso, Vivian Calderoni, Camila Nadalini de Godoy, Carolina Loeb, Marina Alkmim, and Julia Quirino
Publication Date:
04-2024
Content Type:
Special Report
Institution:
Igarapé Institute
Abstract:
The social reintegration process for former inmates presents challenges that extend beyond the confines of the justice system alone. In the Brazilian context, marked by regional disparities and social, racial, and educational inequalities, the lack of material, financial, and psychosocial support places ex-inmates in a cycle of social rejection and criminality. The deficiency of adequate investments, exacerbated by an emphasis on punishment over post-release reintegration, intensifies these challenges. Thus, it underscores the importance of networked collaboration among public, private, and civil society sectors to optimize resource use, promote integrated solutions, and overcome obstacles in assisting former inmtes, providing multidimensional support for social reintegration. This report outlines the strategies of five network-based initiatives aimed at former inmates, implemented both in Brazil and globally. The document details how these initiatives contribute to strengthening the social reintegration of former inmates and illustrates how they can serve as models to inspire other coordinated actions in the same field. Social reintegration of former inmates and its related concepts used here synonymously – such as (re)insertion, (re)inclusion, (res)socialization, (re)education, (re)adaptation, and (re)habilitation – should be seen as a priority not only by the criminal justice system but by all stakeholders who may have a direct or indirect influence on this process. It is a global challenge that requires reforms in the justice system, strengthening the rule of law, and implementing specific public policies focused on the various challenges these individuals face in their resocialization process, including aspects such as social interaction, employment opportunities, and access to housing, health, and education. This study acknowledges that the pursuit of social reintegration should be approached from the perspective of ensuring rights and not limited to the view of security and reducing criminal recidivism. This principle was adopted based on the recognition that the criminal justice system is an environment that creates and perpetuates inequalities for the individuals within it. Therefore, ensuring the rights that were denied before, during, and after incarceration is essential for effective social reintegration. Interventions and programs with multiple approaches for this group are rarely accessible, limited to sporadic opportunities to access essential services. In Brazil, which ranks as the third country worldwide in terms of the absolute number of incarcerated individuals, there is a significant variation in incarceration rates across states, which highlights the regional disparities. The composition of Brazil’s prison population also reflects social, racial, and educational inequalities, emphasizing the selective nature of a justice system which imprisons a disproportionate number of black, young, and uneducated people.
Topic:
Security, Civil Society, Human Rights, Prisons/Penal Systems, Inequality, Reintegration, and Criminal Recidivism
Political Geography:
Brazil, South America, and Global Focus

7. Challenges and Recommendations for the Amazon – Peru

Author:
Renata Avelar Giannini, Igor Novaes Lins, and Katherine Aguirre
Publication Date:
02-2024
Content Type:
Special Report
Institution:
Igarapé Institute
Abstract:
Women in the Peruvian Amazon face multiple pressures – environmental, economic, and social. Against a backdrop of profound social inequality in Peruvian society, exacerbated by the historical marginalization of indigenous communities, the defenders interviewed for this study conducted by the Igarapé Institute highlight the pressing need for inclusive policies that ensure territorial rights, land demarcation, and access to essential services. This report aims to analyze the intricate relationship between indigenous women and their territories in Peru, exploring their experiences, challenges, and achievements in protecting territories and mitigating climate change. It employs a participatory methodology that encompasses social and territorial mapping, classification of challenges and solutions, discussion groups, and in-depth interviews with key informants across four focus regions: Ucayali, San Martín, Madre de Dios, and Loreto. The study is divided into four sections and begins by framing the current state of the Peruvian Amazon, proceeds to outline the research methodology, then delves into the key challenges unearthed through interviews, and concludes with a compilation of recommendations aimed at strengthening the protection of territories and enhancing the living standards of indigenous women in Peru.
Topic:
Environment, Women, Inequality, Land Rights, Indigenous, Inclusion, and Amazon Rainforest
Political Geography:
South America, Peru, and Amazon Basin

8. The Impact of COVID-19 on Education in Latin America: Long-Run Implications for Poverty and Inequality

Author:
Jessica Bracco, Matias Ciaschi, Leonardo Gasparini, Mariana Marchionni, and Guido Neidhöfer
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Center for Distributive, Labor and Social Studies (CEDLAS)
Abstract:
The shock of the COVID-19 pandemic affected the human capital formation of children and youths. As a consequence of this disruption, the pandemic is likely to imply permanent lower levels of human capital. This paper provides new evidence on the impact of COVID-19 and school closures on education in Latin America by exploiting harmonized microdata from a large set of national household surveys carried out in 2020, during the pandemic. In addition, the paper uses microsimulations to assess the potential effect of changes in human capital due to the COVID-19 crisis on future income distributions. The findings show that the pandemic is likely to have significant long-run consequences in terms of incomes and poverty if strong compensatory measures are not taken soon.
Topic:
Education, Poverty, Inequality, Human Capital, COVID-19, and Income
Political Geography:
Latin America

9. The nexus between horizontal inequalities and violent conflicts: A case study of Kenya

Author:
Sylvan Odidi
Publication Date:
04-2024
Content Type:
Journal Article
Journal:
Conflict Trends
Institution:
The African Centre for the Constructive Resolution of Disputes (ACCORD)
Abstract:
Horizontal inequalities are defined as inequalities in economic, social or political dimensions or cultural status between culturally defined groups. Relationships between horizontal inequalities and conflict were first discussed by Frances Stewart in the Framework of Collaborative Project Series on socio-economic causes and the impact of humanitarian emergencies and internal conflicts.1 It is instructive to note that if horizontal inequalities endure over generations, it is likely to generate resentment and, subsequently, conflicts. Therefore, the duration, nature, and potency of horizontal inequalities are vital in comprehending conflict dynamics manifesting in societies. Contemporary conflict studies posit that horizontal inequalities result in conflict situations where they intersect with significant group identities.2 In addition, in circumstances where inequalities between various groups are large, the likelihood of conflict is high.3 In this regard, Stewart observes that horizontal inequalities lie at the centre of most violent conflicts in developing nations.4 Arguably, Kenya falls under the category of countries ranked as unequal globally. The distinguishing characteristic of Kenyan society lies in its regional and ethnic disparity in wealth spread among citizens.5 The degree of horizontal inequalities in Kenya typifies the interplay of ethnicity and politics as well as polarised loyalties among key institutional players. 6Existing horizontal inequalities in Kenya have culminated in violent conflicts. These conflicts lower economic productivity, weaken the capacity of institutions to provide essential services, deplete existing resources, and lead to loss of food production as well as capital flight. Ending these conflicts remains a major challenge for relevant stakeholders. This is partly due to the failure of existing leadership structures and institutions to address development challenges, equitably share resources, and promote peaceful coexistence of all communities in Kenya. Most individuals elected and/or appointed to serve Kenyans in leadership positions have failed to entrench the principles of fairness and inclusiveness in the distribution of the country’s resources since independence. While various Kenyan administrative regimes have instituted measures to minimise conflicts, such as the establishment of peace-building and conflict management policies, conflicts of varied forms have persisted. It is against this backdrop that this study seeks to explore the nexus between horizontal inequalities and conflict in the context of Kenya.
Topic:
Governance, Inequality, and Conflict
Political Geography:
Kenya and Africa

10. Climate migration amplifies gender inequalities

Author:
Sofie Henriksen, Sine Plambech, Kolja Dahlin, and Benedikte Raft
Publication Date:
08-2024
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Nepal is one of the countries in the world most vulnerable to climate change. International labour migration has become a strategy to secure funds to protect against the consequences of climate change, but for women it is not so simple.
Topic:
Climate Change, Migration, Poverty, Labor Issues, Women, Inequality, and Gender
Political Geography:
South Asia and Nepal

11. The Invisible Leverage of the Top 1 Percent: Absentee Debtors and Their Hedge Funds

Author:
Stefano Sgambati
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
City Political Economy Research Centre (CITYPERC), University of London
Abstract:
The existing literature on finance, debt and inequality depicts economic elites as a creditor class. According to a popular thesis, over the past four decades, the rich and ultra-rich households in the top 1 percent have experienced a saving glut (excess income), which they have invested in the debts of the poor and their governments. While it is undeniable that the rich have expanded their income share at the expenses of the poor, to refer to them as ‘creditors’ or ‘lenders’ is a misrepresentation of how they actually expand their wealth and income shares by financial means. For it conceals the fact that a great deal of their investments is leveraged, that is, carried out with borrowed money. This article shows that the debts generated by individuals and households in the top 1 percent easily surpass those of all other households and even exceed those of the most indebted states in the world. However, these debts are hard to estimate, and indeed they are not accounted for in statistics on household debt. This is because households in the top 1 percent do not borrow from banks, like normal households do, but they are instead absentee debtors who borrow through the hedge funds, private equity firms, personal investment trusts, and big banks of which they are dominant shareholders and ultimate beneficiaries. To gain an insight into their invisible leverage, the article looks at how much hedge funds borrow, and why their leverage matters.
Topic:
Debt, Political Economy, Inequality, Finance, Elites, Hedge Funds, and Leverage
Political Geography:
Global Focus

12. IMF Standby Agreements and Inequality: The Role of Informality

Author:
Ceyhun Elgin and Adem Elveren
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
In this paper we investigate the response of two inequality metrics to different IMF programs. To this end, we use a relatively large annual (unbalanced) cross-country panel dataset that includes the Gini index and the Estimated Household Income Inequality as the two relevant inequality metrics and covers the period from 1950 to 2016 in an annual basis for 159 countries. Our empirical analysis indicates that in countries where the informal sector size (as percentage of GDP) is relatively larger, the extent of income inequality increases after different IMF programs, but particularly so after standby arrangements. However, we also show that the opposite is true, when informal sector size is small, i.e., inequality declines after different IMF programs.
Topic:
Political Economy, Inequality, IMF, and Informal Economy
Political Geography:
Global Focus

13. Multidimensional Impact of COVID-19 on Education and Implications on Inclusive Recovery

Author:
Gee Young Oh
Publication Date:
04-2024
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
This report aims to present the findings of Oh et al. (2023), which analyzes the post-pandemic inequality levels in developing countries and derives policy implications for Korea's international development cooperation (IDC) to help reduce inequality, especially in the education sector. The impact of COVID-19 on education is multidimensional, with varying levels of heterogeneity across countries, regions, households, and individual stakeholders, including students, parents, and teachers. To comprehensively understand this multidimensionality, the study compares situations in two countries to explore inter- and intra-country educational disparities. After identifying such multidimensionality, the study derives policy implications on how Korea’s IDC can better target post-pandemic inequality in education.
Topic:
Development, Education, International Cooperation, Inequality, and COVID-19
Political Geography:
Asia and South Korea

14. Episode 01: Except for Palestine: The Limits of Progressive Politics

Author:
Mark Lamont Hill and Mitchell Plitnick
Publication Date:
02-2024
Content Type:
Video
Institution:
Center for Security, Race and Rights (CSRR), Rutgers University School of Law
Abstract:
Scholar Marc Lamont Hill and Israel-Palestine expert Mitchell Plitnick spotlight how holding fast to one-sided and unwaveringly pro-Israel policies reflects the truth-bending grip of authoritarianism on both Israel and the United States. 'Except for Palestine' deftly argues that progressives and liberals who oppose regressive policies on immigration, racial justice, gender equality, LGBTQ rights, and other issues must extend these core principles to the oppression of Palestinians.
Topic:
Human Rights, Politics, Authoritarianism, Inequality, LGBT+, Liberalism, Progressivism, Gender, Palestinians, and Racial Justice
Political Geography:
Middle East, Israel, Palestine, North America, and United States of America

15. The Path Through: Early COVID-19 Job Loss and Labour Market Trajectories in Austria

Author:
Stefan Jestl and Maryna Tverdostup
Publication Date:
05-2024
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper examines the socio-demographic disparities evident in the early labour market response to the COVID-19 pandemic in Austria, relying on the register-based labour market career dataset from the Austrian Micro Data Center (AMDC) for the 2018-2021 period. The analysis focuses on the divergences in out-of-unemployment transitions and medium-term employment stability among those who lost their jobs early in the pandemic in contrast to the group of the longer-term unemployed. We document that individuals affected by job loss during the initial phases of the pandemic did not exhibit enduring scarring effects. Unlike their longer-term unemployed counterparts, they did not demonstrate persistent labour market detachment, prolonged periods of unemployment or a diminished success rate in re-employment. However, certain socio-demographic cohorts – notably, women, parents with two or more young children, and individuals with lower levels of education – faced disproportionate challenges during the pandemic. They were more inclined to transition into precarious employment arrangements and experienced lower levels of employment stability in the months following re-employment.
Topic:
Employment, Inequality, Unemployment, COVID-19, Labor Market, and Gender
Political Geography:
Europe and Austria

16. Gender and Education Gaps in Employment: New Evidence for the EU

Author:
Aleksandr Arsenev, Meryem Gökten, Philipp Heimberger, Andreas Lichtenberger, and Torben Schütz
Publication Date:
06-2024
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper analyses (age-adjusted) employment rates by gender and education. We find that male female gender gaps and high-low education gaps in employment vary markedly across European Union (EU) countries and regions, with larger gaps existing in Eastern and Southern Europe than in Nordic and Continental EU countries. We estimate that closing existing education gaps in employment between high and lower education levels would raise the employment rate in the EU for the year 2022 by 10.6 percentage points, whereas closing the gender gaps between men and women would lead to an increase of 2.5 percentage points. At the same time, closing both the gender and education gaps would raise the EU employment rate from 76% to 89% of the population. Furthermore, we provide new evidence on the cyclical behaviour of employment gaps, finding that gender gaps are procyclical. While female employment rates tend to be more resilient than male employment rates during economic downturns, male employment rates tend to grow at a faster pace than female employment rates during upswings. In contrast, education gaps are more countercyclical, as employment risks are more strongly concentrated where education is low.
Topic:
Education, Labor Issues, European Union, Employment, Inequality, Macroeconomics, Unemployment, Gender, and Income Distribution
Political Geography:
Europe

17. Beyond Borders: Do Gender Norms and Institutions Affect Female Businesses?

Author:
Holger Görg and Ina C. Jäkel
Publication Date:
08-2024
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
In this paper, we investigate whether gender norms and institutions act as a constraint to the performance of female businesses. We exploit novel and unique micro data on start-ups in Denmark, which we combine with information on individual-level characteristics of the entrepreneur as main decision maker of the firm. We overcome the challenge of disentangling norms and institutional biases against women from other constraints and hurdles that female businesses might face by exploiting detailed trade data. In this trade context, we study the relative performance of firms across markets with varying institutions, while controlling for other factors that affect female businesses uniformly across all markets. We provide evidence that gender inequality and institutional biases against women in trade partner countries play an important role in explaining gender differences in export and import behaviour. We also perform an event study of a concrete policy change in a destination market – the introduction of quotas for the share of females on the boards of directors in Norway – and how it has affected the gender gap in trade participation.
Topic:
Globalization, International Trade and Finance, Inequality, Startup, Gender, Opportunity, and Firm Internationalization
Political Geography:
Global Focus

18. Who Will Cities Be For? Inequality, Housing, and the Future of African Urbanization

Author:
Paula Sevilla Núñez
Publication Date:
04-2024
Content Type:
Special Report
Institution:
Center on International Cooperation (CIC)
Abstract:
As urban areas absorb most of the population growth in the upcoming decades, urbanization presents unique opportunities to transform a society’s economic, social, and political landscape. How cities perform in these dimensions will determine whether societies can become more peaceful, just, and inclusive, and be effectively prepared to respond to future crises. In an urban age shaped by inequalities, policies on housing can either be a catalyzer of equitable and sustainable development or contribute to a vicious cycle of exclusion that hinders governments’ ability to address today’s global challenges. Approaching the issue of housing from a purely technical lens overlooks its political nature, wherein the tension between ensuring residents’ right to housing and promoting real estate financialization for economic gain encapsulates broader questions such as who belongs in a city, or a society’s vision of its own future. Housing is therefore not just a technical or financial issue, but also one of governance. Two-thirds of African cities that will exist in 2050 have yet to be built. Making space to house these new urban residents by building new homes presents an opportunity to do it with a people-centered approach. Effective housing governance requires dismantling past structures that perpetuate exclusionary practices; challenging simplistic narratives of urban glory that end up promoting the financialization of housing; and building coalitions that work for a renewed social contract through access to housing.
Topic:
Urbanization, Inequality, Cities, and Housing
Political Geography:
Africa

19. From Rhetoric to Reality: Uncovering Strategic Division and the Linkages Between Polarization and Inequality

Author:
Raquel Jesse
Publication Date:
07-2024
Content Type:
Special Report
Institution:
Center on International Cooperation (CIC)
Abstract:
Amid the economic, climate, and health crises, in addition to deteriorating socio-economic conditions and escalating conflicts in many contexts around the world, societies are facing a new major threat: fragmentation. That is, many societies are experiencing a mixture of increased divisions at various levels of society characterized by worsening polarization, not merely along partisan lines, but across various groups. In addition, the prevalence of hate speech and violence, intermixed with a heightened sense of discord, the resurgence of marginalization for some communities, and widespread insecurity, distrust, and hardship, has resulted in a fracturing both at the political and community level. In a time when we need to work together more than ever, the era of soundbites, disinformation, and reactionary rhetoric makes thoughtful debate and dialogue, consensus-building, and coalition formation increasingly difficult. This paper aims to disentangle the threads of escalating global fragmentation, the dynamics fueling it, and emerging solutions to counteract its adverse effects. This work stems from listening to the recurring concerns and challenges from policymakers and civil society about navigating the emerging backlash, division, and disinformation when pursuing inclusive policy agendas. Whether it is to recognize Indigenous communities in legal documents, plans to implement a transformative climate agenda, policies to advance gender equality, increase public investments, or provide safe passage and resources to people on the move—divisive narratives are derailing these efforts. This report attempts to understand why and how different communities, actors, and policy agendas are being undermined in similar ways. Although these are difficult times, numerous solutions, actionable strategies, and dedicated communities are addressing these challenges—if we know where to look. We aim to highlight successful examples of tackling disinformation, bridging divides, and driving the desperately needed change. The report is organized as such: Navigating the Twin Storms of Inequality and Polarization Unveiling Strategic Division: The Power Play Behind Societal Divides Mapping Vulnerabilities: Factors Fueling Susceptibility to Strategic Division Tackling Division at its Core: Comprehensive Policy Interventions While the mechanisms and solutions to societal fragmentation are complex, there is comfort in the understanding that this challenge is not unique to any single nation or community but is shared. By shedding light on these issues, we can pave the way for solutions—together. As demonstrated in this report and the dialogues that preceded it, numerous individuals, communities, and initiatives are dedicated to innovating and meeting the challenges of our time, bridging divides with the conviction that our strength is amplified when we stand together. We hope this paper can contribute in some small way to these efforts.
Topic:
Inequality, Polarization, Fragmentation, and Rhetoric
Political Geography:
Global Focus

20. Mapping Fragility – Functions of Wealth and Social Classes in US Household Finance

Author:
Orsola Costantini and Carlo D'Ippoliti
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
Which households are more exposed to financial risk and to what extent is their debt systemically relevant? To provide an answer, we advance a new classification of the population, adapted from Fessler and Schürz (2017), based on the type of wealth families own and their sources of income. Then, we investigate data from eleven waves of the Survey of Consumer Finances (SCF), a triennial survey run by the U.S. Federal Reserve, to explore the association of different debt configurations and motives to get into debt with our class distinctions. Our new approach allows us to assess competing hypotheses about debt and financial vulnerability that have so far been analyzed separately in disconnected strands of literature. The results of our study reinforce and qualify the controversial hypothesis that relative poverty and inequality of income and access to services have been important factors explaining household indebtedness and its relationship with economic growth over time.
Topic:
Debt, Poverty, Inequality, Finance, Fragility, and Income Distribution
Political Geography:
North America and United States of America