The rich-poor gap, a pervasive issue worldwide, signifies not only economic disparity but also broader concerns regarding social justice and access to decent work opportunities. As this chasm widens, it becomes imperative to examine its implications and explore avenues for equitable progress.
Understanding the Rich-Poor Gap
Economic inequality, encapsulated by terms like income inequality and wealth distribution, has reached alarming levels globally, nationally, and locally. The World Inequality Report 2022 paints a stark picture of India's landscape, where the top 10 per cent command 57 per cent of the national income, contrasting sharply with the meagre 13 per cent held by the bottom 50 per cent.
According to the IMF the top 10% of people worldwide own over 190 times as much as the lowest half, who own just 3000 USD (in purchasing power parity) per adult. The disparities in income have hardly improved. 52 percent of all income is now owned by the richest 10 percent of people. The bottom half only receives 8.5 per cent.Factors such as economic policies, globalisation, and technological advancements contribute to this widening gap, highlighting systemic issues demanding attention.
The Human Cost of Inequality
Beyond statistics lies the human toll of inequality, manifested in job scarcity, rising poverty, and dwindling opportunities. Decent work opportunities are essential for breaking the cycle of poverty and exclusion, highlighting the need for systemic reforms to foster inclusive growth and equitable opportunities, particularly for marginalised groups.
Implications for Social Justice: The rich-poor gap's ramifications permeate various aspects of social justice. The uneven distribution of access to essential services such as education, healthcare, housing, perpetuates cycles of disadvantage. Marginalised groups, including women, and people with disabilities, bear the brunt of these disparities, facing systemic barriers that hinder their advancement and well-being.
In recent years, the world community has paid close attention to the social justice movement in India. But is it genuinely a movement that cares about the welfare of the underprivileged segments of Indian society, or is it merely a means for the privileged segments to maintain their position of power?
Defining the paradigm of Work Opportunities
Work possibilities are one of the most important topics to discuss when it comes to social fairness and economic injustice.
What Constitutes a Decent Work Opportunity?
Decent job prospects offers growth opportunities, safe workplaces, fair hours, and job stability. Economic inequality affects employment quantity and quality. Since opportunity is concentrated among a few, marginalised populations have trouble getting into high-quality
jobs. Inequalities in healthcare, social services, and education make it harder to obtain and hold decent employment, perpetuating disadvantage. Globalisation boosts economic development but worsens inequality by moving employment to low-wage countries and increasing competition for talent. Automation displaces people and promotes job insecurity, particularly for low-skilled workers.
Policy Responses and Solutions: Addressing economic inequality requires a multifaceted approach. Evaluating existing policies reveals gaps in implementation and coverage, necessitating reforms to taxation systems and labour rights protections.
Existing Policies Aimed at Tackling Inequality:
1. The National Rural Employment Guarantee Act (MNREGA) guarantees every rural household in India 100 days of wage employment. It aims to enhance livelihood security in rural areas by providing employment opportunities to the poor. Under Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) a total of 11.37 Crore households availed employment and a total of 289.24 crore person-days employment has been generated (till 15th December, 2022).
2. Affirmative Action Programmes: Various affirmative action programmes, such as reservations in education and employment for marginalised communities like Scheduled Castes (SCs), Scheduled Tribes (STs), and Other Backward Classes (OBCs), aim to address historical injustices and promote social inclusion.
3. Social Welfare Schemes: India has several social welfare schemes targeting vulnerable populations, including the Public Distribution System (PDS) for food security, the Pradhan Mantri Jan Dhan Yojana (PMJDY) for financial inclusion, and the Pradhan Mantri Awas Yojana (PMAY) for housing for all. More than 46.25 crore beneficiaries banked under PMJDY since inception, amounting to Rs. 1,73,954 crore
4. Progressive Taxation: While India's taxation system is not as progressive as some developed countries, it still includes measures like income tax brackets with higher rates for higher income levels. However, there is room for improvement in making the tax system more equitable.
Proposed or Potential Policies and Reforms to Address Inequality:
1. Universal Basic Income (UBI): Implementing a UBI scheme could provide all citizens with a basic level of income, regardless of their employment status. UBI has the potential to alleviate poverty, reduce inequality, and provide financial security to vulnerable populations.
2. Labour Rights Protections: Strengthening labour laws to ensure fair wages, safe working conditions, and opportunities for collective bargaining can empower workers and reduce income disparities between employers and employees.
3. Investments in Education and Training: Increasing public spending on education and vocational training programmes can equip individuals with the skills needed to access better job opportunities and break the cycle of poverty.
4. Healthcare Reforms: Expanding access to affordable healthcare through initiatives like universal health coverage can improve health outcomes and reduce disparities in healthcare access between different socio-economic groups.
5. Social Security: Strengthening social security by expanding coverage and increasing benefits can provide a safety net for the most vulnerable segments of society, including the elderly, disabled, and unemployed.
A Glimpse of Hope Amidst Inequality
Amidst the prevailing inequality, policy initiatives such as the Decent Work Country Programme for India 2023–2027 offer rays of hope. By prioritising decent, productive job opportunities and fostering gender inclusivity in the labour market, such initiatives align with global visions of equity and social justice, offering pathways towards a more just and equitable society Charting a Path Towards Equity
India finds itself at a critical juncture, necessitating the development of a path that promotes equity and inclusion.. to mitigate entrenched inequalities and pave the way for inclusive growth and sustainable development.
(The views expressed in the article above have been crafted exclusively for BW PEOPLE publication by Amit Malik, President Japan,Asia, Pacific & Australia)
