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Begin New Search Topic Inequality Publication Year within 25 Years

81. Inequality, Current Account Imbalances and Middle Incomes

Author:
Océane Blomme and Jérôme Héricourt
Publication Date:
04-2023
Content Type:
Working Paper
Institution:
Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
Abstract:
This paper investigates the complex relationship between current account balance and income inequality, putting specific emphasis on the potential sources of non-linearities in the latter. Based on a dataset for 52 developed and developing countries over the period 1990-2019, we first show a one-standard-deviation increase in various income inequality indicators generates a decrease in the ratio of current account over GDP by -0.5 to -0.9 percentage points in developed countries, but no significant impact when the sample is expanded to include emerging and developing countries. We then show those average impacts are distorted along the distribution of economic and financial development variables: for those countries displaying low GDP per capita, low levels of financial deregulation and of capital account openness, additional income inequality actually improves the current account balance. Conversely, the impact of income inequality on current account is all the more negative that financial markets are bigger, more deregulated and more open. In addition, the decrease in the current account balance is 1.2 to 1.4 times more important in countries with higher financial development or more open capital account when the increase in inequality is driven by the income of top earners relative to the middle class rather than by the increase in top earners' incomes at the expense of the lowest percentiles of the distribution. Those results are robust to various robustness checks for endogeneity concerns, possible impact of the Great Financial Crisis, and variable definitions.
Topic:
Inequality, Finance, Middle Class, and Income
Political Geography:
Global Focus

82. The Post-COVID Consensus

Author:
Shahid Yusuf
Publication Date:
10-2023
Content Type:
Policy Brief
Institution:
Center for Global Development (CGD)
Abstract:
Development economics is turning a full circle with a difference. This paper addresses the circling back to the policies in vogue during the 1980s and earlier, including industrial policies, coupled with protectionism; accounts for the regression to earlier certitudes after an extended spell of globalization underpinned by market fundamentalism; and indicates how a transforming global environment has enlarged the policy agenda. There is a new policy consensus in the making, which borrows some elements of the Washington Consensus but goes beyond to encompass a broader policy agenda.
Topic:
Development, Markets, Poverty, Inequality, Economic Development, and COVID-19
Political Geography:
Global Focus

83. Informe Iberoamérica 2023

Author:
Marcos Criado De Diego, Daniel Gayo Lafée, Marisa Ramos Rollon, Erika Rodríguez Pinzón, Loreno Ruano, and José Antonio Sanahuja
Publication Date:
05-2023
Content Type:
Special Report
Institution:
Fundación Alternativas
Abstract:
Hoy la realidad de los países que conforman la Asociación Estratégica entre la UE y la CELAC es completamente diferente. Si bien tomaron contacto en la última Cumbre Iberoamericana en República Dominicana, prevalecieron las fracturas y las diferencias entre países y posturas. Ambas regiones enfrentan un contexto desafiante. Ha aumentado el riesgo de fragmentación en bloques geopolíticos y económicos. América Latina y el Caribe están ante el dilema de pertenecer al hemisferio occidental o fortalecer su integración intrarregional. Europa con desafíos inéditos, ante una agenda influída totalmente por el conflicto entre Ucrania y Rusia con una fuerte desaceleración de su crecimiento a un magro 0,1% para 2023, con gastos militares crecientes para apoyar a Ucrania lo que implica dejar atrás otras prioridades de desarrollo y con dilemas sociales para preservar su sociedad de bienestar. América Latina y el Caribe por su parte, es hoy una región más desigual, más pobre, más endeudada, más polarizada y más desconfiada. Enfrenta múltiples crisis sufriendo los impactos del conflicto de Ucrania con altos niveles de inflación (7,7% en promedio) a pesar de que los precios de combustibles y alimentos parecen haber llegado a su límite. El impacto de la pandemia, la crisis climática, las disrupciones en las cadenas de suministro, el endurecimiento de las políticas monetarias y el financiamiento internacional y la deuda pública y privada y baja recaudación fiscal agobian hoy día a esta región. Los riesgos económicos han aumentado junto con la incertidumbre y el desencanto social generando mayor polarización política.
Topic:
Security, Foreign Policy, Climate Change, Inequality, and Russia-Ukraine War
Political Geography:
Europe and Latin America

84. Crisis alimentarias en el norte de África

Author:
Laurence Thieux
Publication Date:
04-2023
Content Type:
Working Paper
Institution:
Fundación Alternativas
Abstract:
La guerra en Ucrania, sumándose a las crisis anteriores, ha tenido un fuerte impacto sobre los países de Norte de África dependientes de los mercados mundiales para alimentar a su población. La inflación y la perturbación de las cadenas de suministro han agudizado las crisis económicas y sociales y los riesgos de inseguridad alimentaria de las franjas más vulnerables de la población de esta región incrementando las fracturas territoriales y las desigualdades. Este documento, a cargo de Laurence Thieux, profesora ayudante doctor del Departamento de Relaciones Internacionales e Historia Global de la Universidad Complutense de Madrid, trata de arrojar luz sobre las causas estructurales de las crisis de los sistemas alimentarios y agrícolas de algunos países del norte de África (Marruecos, Argelia, Túnez, Libia y Egipto). Se analiza también sus consecuencias y la contestación de unos modelos de desarrollo agrícola cuya sostenibilidad es cada vez más cuestionada por las injusticias sociales que conllevan y el uso desmedido de recursos naturales cada vez más exiguos por el cambio climático.
Topic:
Foreign Policy, Food Security, Inequality, and Crisis Management
Political Geography:
Africa, Europe, Spain, North Africa, and Sub-Saharan Africa

85. Keeping up with the Dlaminis: Perceived inequalities and satisfaction with democracy in Africa

Author:
Thomas Isbell
Publication Date:
05-2023
Content Type:
Working Paper
Institution:
Afrobarometer
Abstract:
Does perceived inequality shape how satisfied ordinary Africans are with how democracy is functioning in their countries? I use nationally representative Afrobarometer survey data (collected in 2016-2018 in 34 countries, N=45,811) to test whether satisfaction with democracy (SWD) is higher among people who (1) feel that their living conditions are equal to others’ or (2) feel that they are better off than other people. Controlling for both individual- and country-level effects, I show that feeling better off than other people increases satisfaction, and feeling worse off than other people decreases satisfaction, with how democracy is functioning in the respondent’s country. People who feel equal to others are more satisfied than those who feel relatively deprived, but less satisfied than people who say they are better off than others. These results suggest egocentric expectations of the functioning of democracy among ordinary Africans. I demonstrate that these relative assessments are significant and comparable in effect size to widely used predictors of satisfaction with democracy found in the literature, such as economic country-level evaluations, partisanship, and political interest. These results therefore should encourage future research to include individual-level comparative assessments as predictors of SWD. Our results represent the most recent cross-national re-examination of predictors of SWD in Africa. My regression results are widely in line with past empirical research – both in and outside of Africa – and suggest that SWD is primarily shaped by political and economic performance evaluations. This points to the explanatory model of SWD in Africa being relatively stable across time.
Topic:
Development, Democracy, Inequality, and Economy
Political Geography:
Africa

86. Industrial Feudalism and Wealth Inequalities

Author:
Hanna Szymborska and Jan Toporowski
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
The possibility, first raised by Rudolf Hilferding, of stabilizing a capitalist economy through the operations of a ‘general cartel’, leaving only social and political ‘contradictions’ to disturb the functioning of the system, gave rise to a discussion among Marxists not only on whether such a stabilization was at all possible, but also on the nature and scope of those contradictions. This discussion had been anticipated in the 1890s in the work of the Polish Marxist Ludwik Krzywicki (1859 – 1941). He put forward the idea that, in a capitalist economy stabilized in this way, a state of ‘industrial feudalism’ would prevail, in which society would become stratified into social classes without the possibility of mobility between those classes. This analysis was extended in 1940s by Oskar Lange (1904-1965) as he attempted to make sense of the American New Deal and rediscovered in the 1950s by Tadeusz Kowalik (1926-2012). This paper explains the concept of industrial feudalism and argues that the main mechanism for such a stratification today is the unequal distribution of wealth, in the context of declining welfare provision.
Topic:
Industrial Policy, Inequality, Feudalism, Industry, and Wealth
Political Geography:
North America and United States of America

87. Why Turkey’s Gender Inequality Matters

Author:
Dimitris Tsarouhas
Publication Date:
06-2022
Content Type:
Policy Brief
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
Women’s underrepresentation in Turkey’s public life is a persistent and long-lasting phenomenon, despite the socio-economic progress achieved over the last two decades. Some indicators suggest that the problem has been getting worse in recent years, and Turkey’s withdrawal from the Istanbul Convention in 2021 has compounded fears of a further deterioration. Discrimination against women is not only normatively wrong, it is also practically self-defeating, since it deprives the country of resources, talent and expertise it needs to raise prosperity levels. However, women’s organizations in Turkey are numerous, visible and persistent in their demands for genuine equality and an end to discrimination. To address key aspects of the problem, such as record low female employment rates, Turkey needs to return to high-level, sustainable growth and promote female entrepreneurship.
Topic:
Women, Inequality, Discrimination, Representation, and Gender
Political Geography:
Turkey and Middle East

88. Levelling up: what England thinks

Author:
Suzanne Hall, Will Jennings, Lawrence McKay, Sophie Stowers, Paula Surridge, and Alan Wager
Publication Date:
10-2022
Content Type:
Special Report
Institution:
UK in a Changing Europe, King's College London
Abstract:
For all the discussion there has been about ‘levelling up’ and the problem of regional inequality in the UK, little energy has been expended in finding out how people feel about their areas, what could and should be done to improve them, and who they trust to actually do it. The following report aims to fill this gap. UK in a Changing Europe partnered with YouGov to carry out a survey of over 20,000 people from across England. This was the first survey of its kind on levelling up and regional inequality, and the first to assess the impact of changes to how England is governed, including the effect of the introduction of Metro Mayors. This survey was accompanied by a series of focus groups conducted by NatCen and King’s College London’s Policy Institute in Barking and Dagenham, Blackpool, Nottingham, Blyth and Barnsley – designed to capture the views of metropolitan boroughs, rural towns and coastal communities. The aim was to find out how people in England feel about their local communities, what policies they feel would be most effective when it comes to ‘levelling up’ the country, how they would like these policies to be delivered, and who they trust to deliver them.
Topic:
Public Opinion, Inequality, Economy, and Public Policy
Political Geography:
United Kingdom and Europe

89. Inequality in Education Among Turkish Young Individuals, 1988-2020.

Author:
Nursel Aydıner Avşar and Bengi Yanık İlhan
Publication Date:
07-2022
Content Type:
Journal Article
Journal:
AURUM Journal of Social Sciences
Institution:
Altinbas University
Abstract:
This paper studies the changes in education inequality in the youth population (15-29 age group) in Turkey using the Household Labour Force Survey data for the 1988-2020 period. The average year of schooling is calculated to investigate the changes in the level of educational attainment, and standard deviation in years of schooling and education Gini coefficient are calculated to examine how within-group education inequality changes over time. These statistics are calculated for young men and young women separately to also find out how gender inequality in educational attainment and education inequality changes over time. The findings of this study show that the average years of schooling increases for both young men and young women in Turkey while education inequality measured by the Gini coefficient decreases for both groups between 1988 and 2020. This seems to reflect the positive implications of the expansion in compulsory education for both average years of schooling and education inequality. Average years of schooling is higher for young men while education Gini is higher among young women despite the closing of the gender gap in both measures over time.
Topic:
Education, Inequality, Youth, Labor Market, and Gender
Political Geography:
Turkey, Middle East, and Mediterranean

90. Türkiye’de Bölgelerarası Sosyo-Ekonomik Gelişmişlik Farklarının Azaltılmasına Yönelik Politikalar: Güneydoğu Anadolu Projesinin (GAP) İncelenmesi (Policies for Reducing Inter-Regional Disparities of Socio-Economic Development in Turkey: An Investigation of the Southeastern Anatolia Project (GAP))

Author:
M. Kemal Aydın and Alptegin Albayraktaroğlu
Publication Date:
12-2022
Content Type:
Journal Article
Journal:
AURUM Journal of Social Sciences
Institution:
Altinbas University
Abstract:
Bir ülkedeki gelişmişlik düzeyinin ülke genelinde dengeli bir şekilde dağılması ve bölgeler arası farkın az olması önemlidir. Bunu gerçekleştirmek amacıyla hazırlanan bölgesel kalkınma planlarında, ülkeler bölgelere, bölgeler türlere ayrılmıştır. Bu bağlamda homojen, polarize ve plan bölge şeklinde üç farklı bölge türü vardır. Bölgesel kalkınma, bölgeler arası dengesizliklerin giderilmesi ve bölgede bulunan iktisadi ve toplumsal potansiyellerin faaliyete geçirilmesiyle refah düzeyinin yükseltilmesini ifade etmektedir. Türkiye’de özellikle 1950’li yıllardan itibaren bölgesel politikalar önem kazanmış ve ülkenin kalkınması için çok önemli bir politika olarak görülmüştür. Bu kapsamda ülkedeki bölgeler için birçok proje hayata geçirilmiştir. Güneydoğu Anadolu Bölgesi’nin sahip olduğu kaynaklardan faydalanılması fikriyle, bütünleşik ve çok sektörlü bir kalkınma projesi olarak Güneydoğu Anadolu Projesi (GAP), 6 Kasım 1989’da Resmî Gazete’de yayımlanan Kanun Hükmünde Kararname (KHK) ile başlatılmıştır. Bu proje 9 ili kapsamaktadır ve Cumhuriyet tarihinin en etkin şekilde uygulanan projesidir. Proje kapsamında master plan, bölge kalkınma planı, eylem planları ve kalkınma programları uygulanmaktadır. Günümüzde GAP bölgesindeki illerde başta tarım, enerji ve sanayi olmak üzere birçok sektör için iyileştirme süreçleri devam etmektedir. Bu çalışmada 2000’li yıllardan itibaren GAP kapsamındaki gelişmeler resmi veriler üzerinden incelenmiştir. Ardından seçilen sektörlerdeki gelişmeler ele alınmıştır.
Topic:
Development, Inequality, Economy, Domestic Policy, and Socioeconomics
Political Geography:
Turkey, Middle East, and Mediterranean

91. A gender perspective on artificial intelligence and jobs: The vicious cycle of digital inequality

Author:
Estrella Gomez-Herrera and Sabine Köszegi
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
The worldwide artificial intelligence market is expected to increase enormously in the next few years. Because of AI’s immense potential, virtually all industries will be affected by the implementation of AI systems, resulting in the digitalisation and automation of work processes. This will cause disruptive shifts in labour markets, in terms of the number and profiles of jobs in industries as well as worker skill requirements. We take a gender perspective and analyse how gender stereotypes and gendered work segregation on the one hand, and digitalisation and automation (as a consequence of AI implementation) on the other hand, are entangled and result in a vicious cycle of digital gender inequality. We provide insights into the gender-specific impact of AI technologies, which is relevant for the mitigation of the potential risk of the creation of social inequality and exclusion. We show that existing empirical evidence already indicates that AI will not increase gender equality but will somewhat further exacerbate the gender inequality in labour markets, ranging from further horizontal and vertical occupational gender segregation to an increase in the gender pay gap. We summarise policy guidance and measures to decrease gender inequality in the future.
Topic:
Inequality, Digital Economy, Artificial Intelligence, Gender, and Work
Political Geography:
Global Focus

92. Intergenerational Mobility of Economic Well-being in Latin America

Author:
Guido Neidhöfer, Matias Ciaschi, and Leonardo Gasparini
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
Center for Distributive, Labor and Social Studies (CEDLAS)
Abstract:
We estimate, for the first time, long-run trends in intergenerational economic mobility for a multitude of countries in Latin America going beyond parent-child correlations in educational attainment. We use several indicators of well-being, such as the socio-economic situation of individuals, job stability, homeownership and assets. Unlike estimates based on education, which mostly show increasing social mobility trends, we find that opportunities to achieve a certain level of economic well-being and climb up the social ladder are rather unequally distributed and have not changed much over time in Latin America.
Topic:
Inequality, Economy, Economic Mobility, and Well-Being
Political Geography:
Latin America

93. The Commitment to Reducing Inequality Index 2022

Author:
Jo Walker, Matthew Martin, Emma Seery, Nabil Abdo, Anthony Kamande, and Max Lawson
Publication Date:
10-2022
Content Type:
Research Paper
Institution:
Oxfam Publishing
Abstract:
The 2022 Commitment to Reducing Inequality (CRI) Index is the first detailed analysis published looking at governments’ policies and actions to fight inequality during the first two years of the pandemic. This fourth edition of the CRI Index reviews the spending, tax and labour policies and actions of 161 governments during 2020–2022. COVID-19 has increased inequality worldwide, as the poorest people were hit hardest by both the disease and its profound economic impacts. Yet the CRI 2022 Index shows clearly that most of the world’s governments failed to mitigate this dangerous rise in inequality. Despite the biggest global health emergency in a century, half of low-and lower-middle-income countries saw the share of health spending fall during the pandemic, half of the countries tracked by the CRI Index cut the share of social protection spending, 70% cut the share of education spending, while two-thirds of countries failed to increase their minimum wage in line with gross domestic product (GDP). Ninety-five percent of countries failed to increase taxation of the richest people and corporations. At the same time, a small group of governments from across the world bucked this trend, taking clear actions to combat inequality, putting the rest of the world to shame.
Topic:
GDP, Inequality, Tax Systems, Pandemic, and COVID-19
Political Geography:
Global Focus

94. Our climate future depends on conflict dynamics in Congo

Author:
Peer Schouten, Judith Verweijen, and Fergus Simpson
Publication Date:
11-2022
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
The Congo Basin rainforest – the second largest on earth – absorbs four percent of global CO2 emissions and constitutes a crucial line of defense against cataclysmic climate change. However, a complex mix of illegal resource exploitation and conflict is currently threatening the rainforest. To curb these threats and their global consequenses, we need to understand the interplay between resources, conflict and environmental protection in Congo.
Topic:
Agriculture, Climate Change, Development, Environment, Poverty, Food, Non State Actors, Armed Forces, Inequality, Fragile States, Violence, Police, and Justice
Political Geography:
Africa and Democratic Republic of the Congo

95. Characterisation of Danish agricultural investments in Tanzania and Uganda

Author:
Rikke Broegaard, Helle Monk Ravnborg, Evelyne Lazaro, Teddy Nakanwagi, and David Tumusiime
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
This DIIS Working Paper presents key characteristics of each of the six cases including main crop focus, size and business model, as well as types of investors, their investment approach and the factors that motivate them. It also presents the different objectives that the investors have expressed wanting to achieve. As most of the investments involve private funds, it is reasonable to expect that one important goal is to ensure a viable economy in the investment. However, in addition to an economically sound investment, all of the investors behind these six cases have ambitions regarding ways in which they see themselves - through the investment - as contributors towards a positive societal development in the area of the investment. Thus, the paper presents the different ways the investors see their investments contributing to development in the area. The paper is based on interviews with the investors and field work in the areas of investments.
Topic:
Agriculture, Development, Environment, Poverty, Natural Resources, Food, Inequality, Investment, and Land Rights
Political Geography:
Europe, Denmark, Tanzania, and Africa

96. How renewable energy transitions impact power structures in local communities

Author:
Maria-Louise Clausen
Publication Date:
03-2022
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
International donors often see renewable energy transitions in fragile and conflict-affected states as a building block for peace and development. But donor-supported transitions to small-scale renewable energy generation can both mitigate and exacerbate local conflict dynamics and undermine the central state. In fragile and conflict-affected states, it is often difficult for the central authorities to protect large-scale energy infrastructure from attacks and sabotage, and thus guarantee long-term stability. Moreover, local communities often use fuel-driven generators to supplement the state-driven national grid, but national diesel supply lines are also vulnerable to disruptions. Consequently, international donors increasingly support small-scale renewable energy generation as a climate friendly alternative to centralised and state-led energy generation. Solar photovoltaic (PV) in particular has become a widely promoted, affordable and accessible technology for local energy generation.
Topic:
Security, Climate Change, Development, Water, Non State Actors, Governance, Inequality, Renewable Energy, and Energy Transition
Political Geography:
Global Focus

97. Economic and Social Impacts of FDI in Central, East and Southeast Europe

Author:
Doris Hanzl-Weiss and Branimir Jovanovic
Publication Date:
11-2022
Content Type:
Special Report
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This study assesses the economic and social impacts of foreign direct investment (FDI) in 17 economies in Central, East and Southeast Europe (CESEE). More precisely, we investigate how different FDI inflows have affected various economic and social indicators, such as GDP growth, labour market outcomes, and poverty and inequality, for the period since the fall of communism until 2020. We pay particular attention to FDI that originates from the EU, as well as FDI from Germany and Austria, in order to evaluate whether their effects are different from the effects of FDI from other places of origin. We also examine whether there are differences in the impacts of different types of FDI – equity capital, reinvested earnings and intra-company debt, as well as of FDI that goes to different sectors of the economy – the primary, secondary and tertiary sectors. We find that FDI inflows have had, in general, a positive effect on economic growth in CESEE, and that this effect has been particularly strong for German and Austrian FDI. For total FDI, higher inflows of 1 percentage point (pp) of GDP are associated with 0.19 pp higher GDP growth. For FDI from Germany and Austria, this effect is five times higher – FDI inflows of 1 pp of GDP have led to 0.9 pp higher GDP growth. The positive GDP effects have come from the higher consumption and exports that the FDI has induced. FDI inflows have also reduced unemployment and increased wages, but have had no effects on labour productivity. Total FDI has had only limited effects on inequality and poverty, but FDI from Germany and Austria has been found to reduce both inequality and poverty, likely because they have benefitted mainly lower-income persons. There are differences in the effects of the different types of FDI, with reinvested earnings and equity capital having in general more beneficial effects than intra-company loans. Also, FDI in different sectors of the economy has had different effects, with inflows to the secondary and tertiary sectors having greater effects than inflows to the primary sector. The policy implications of these results are that CESEE economies should not give up on their efforts to attract more FDI, but also that their endeavours should be more targeted, focusing on investments that have greater economic and social impacts. Moreover, foreign investment should not be criticised for the perhaps unsatisfactory economic and social performances of the economies from this region. Instead, the reasons for this should be sought in domestic factors and in the modest growth of the European Union during the past two decades.
Topic:
Development, International Trade and Finance, Poverty, Foreign Direct Investment, Inequality, Economic Growth, and Unemployment
Political Geography:
Europe, Eastern Europe, Germany, and Austria

98. Ten Recommendations for Germany’s Feminist Development Policy

Author:
Ina Friesen and Alma Wisskirchen
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
In early 2022, Germany’s development minister Svenja Schulze announced the adoption of a feminist development policy. With this announcement, Germany joins a growing group of governments that have adopted or declared the adoption of an explicitly feminist perspective in their external policies. Drawing on these governments’ policies and the observations and recommendations by civil society and researchers, this Discussion Paper outlines ten key recommendations for Germany’s first feminist development policy. The first three recommendations focus on the conceptual foundation of the policy and lay out the importance of 1) an inclusive definition of gender, 2) a clarification of the feminist approach and the policy’s overall goal as well as 3) the need for an intersectional approach. The second set of recommendations concerns the implementation of the policy and stresses the importance of 4) a permanent cooperation with gender-focused and feminist organisations and 5) the necessity to increase funding for gender-related objectives in general and 6) for feminist organisations in particular. Further recommendations include 7) widening the range of sectors that target gender equality through a transformative approach and context-sensitive programming and by providing mechanisms to monitor and evaluate the implementation of the strategy’s goals, objectives and activities. The last three recommendations emphasise institutional aspects and the importance of 8) creating an institutional environment that best supports gender equality within the development ministry and its main implementing organisations, 9) the necessity of a coherent feminist approach between the different ministries, and 10) the importance of addressing possible challenges the ministry might face in the implementation of its feminist development policy.
Topic:
Development, Inequality, Feminism, and Gender
Political Geography:
Europe and Germany

99. Inequality and Social Cohesion in Africa: Theoretical Insights and an Exploratory Empirical Investigation

Author:
Francesco Burchi and Gabriela Zapata-Román
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Inequality is bad per se and has adverse effects, among other things, on economic development and the environment. It is also often argued that high and increasing inequalities put societies under stress, which increases the likelihood of social conflicts. However, the literature on this topic is scarce and some of the conclusions are not adequately supported by empirical evidence. This is mainly because there are different definitions and measurements of social cohesion. Moreover, some definitions of social cohesion incorporate inequality, thus making it impossible to examine how these two phenomena interact with one another. This paper analyses both theoretically and empirically, the relationship between inequality and social cohesion. To do so, it employs a recent definition of social cohesion provided by Leininger et al. (2021). According to this definition, social cohesion is composed of three core attributes, namely trust, inclusive identity and cooperation for the common good. These attributes are examined in two dimensions, namely the horizontal (relationship among individuals) and vertical (relationship between individuals and state institutions) dimensions of social cohesion. This paper provides an overview of the empirical evidence regarding the relationship between inequality and the three attributes of social cohesion. We find that while inequality is likely to have a negative effect on all three attributes, the intensity of the relationship may depend on some key mediating factors. Moreover, we highlight the main pathways through which inequality could affect each of the three key attributes. The empirical analysis focuses on Africa. While there is some work in this field in Europe and Asia, to the best of our knowledge, there has not been any related empirical work thus far that has focused on African countries. To measure the three attributes of social cohesion, we use a database generated by Leininger et al. (2021), which is based on data from Afrobarometer and the V-Dem Institute. Inequality is mainly measured by the Gini coefficient and data are sourced from the World Income Distribution dataset. As expected, our analysis shows that countries with higher inequality usually have lower levels of social cohesion, which is measured by an aggregate index. This negative correlation holds when we analyse the relationship between the Gini coefficient and the three attributes separately; however, the intensity varies. It is stronger for trust (rho=0.25) compared with the other two attributes (both of which have a rho equal to approximately 0.1). Additional investigations point to substantially different results for the horizontal and vertical dimensions of social cohesion. Higher levels of inequality are associated with lower levels of horizontal trust and horizontal cooperation. On the other hand, higher levels of inequality are associated with higher levels of vertical trust and are essentially uncorrelated with vertical cooperation. These relationships remain substantially unchanged when we use measures of income inequality other than the Gini coefficient. Further analyses that aim to explain the puzzling results for the vertical dimension of social cohesion reveal that our findings are not clearly driven by trust in a specific institution and are also not an artefact of the specific data we used. Indeed, we obtain similar results using data from the World Values Survey. At the same time, it appears that the positive relationship between inequality and vertical trust is visible only among African countries, whereas it is not observed at the global level or for other regions. Further research is needed to confirm whether Africa is truly exceptional in this regard, and if so, why that may be the case.
Topic:
Development, Inequality, Economy, and Social Cohesion
Political Geography:
Africa

100. Just Transitions: A Review of How to Decarbonise Energy Systems While Addressing Poverty and Inequality Reduction

Author:
Daniele Malerba
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Germany promotes “just transition” as a guiding principle for the global transition to a socially and environmentally sustainable economy that incorporates the necessary climate, environmental and energy policy measures. This includes the urgent transformation of economies to become emission neutral while ensuring a process whereby poverty and inequality are reduced, and no one is left behind. The German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE), the World Bank and the German Federal Ministry for Economic Cooperation and Development (BMZ) worked together to explore ways to implement the concept of just transition in German development cooperation. The two papers that have resulted from this process outline approaches to a “just transition for all” and highlight its potential to reduce poverty and inequality (SDG 1 and SDG 10). In recent decades, the interdependencies between social and ecological development have become clear: negative effects of climate change particularly affect vulnerable and marginalised groups living in poverty. At the same time, social inequalities contribute to an exacerbation of climate change. A just transition must effectively address the consequences at the international, national, regional and local levels. Both papers provide an overview of existing approaches and challenges to foster a “just transition for all”. They offer different but complementary perspectives on an increasingly important complex of topics. This first paper, by DIE, takes a broad perspective by considering the decarbonisation of the energy sector as a whole, outlining the connections between just transition, poverty and inequality, and exploring how to ensure a just transition (for both workers and consumers) through the use of different social protection mechanisms. It argues that it is possible to make energy transitions just, but that properly designed combinations of socio-economic and climate policies are needed. A second paper, by the World Bank, zooms in on the transition away from coal. It lays out key social and community impacts resulting from the decommissioning of coal assets, based on experience gained from World Bank operations and from industrialised countries, and articulates an enhanced approach to supporting the coal transition. Both provide practical recommendations for international development cooperation in general, and for German development cooperation in particular.
Topic:
Development, Poverty, Inequality, Economy, and Decarbonization
Political Geography:
Europe and Germany