Oxfid inequality discussion Kevin Watkins, ODI 24 February 2014

Inequality reflections: who said it? We are creating societies where we have large groups of haves and have nots – and we need to address this Distribution should undo excess and each (person) have enough In far too many countries the benefits of growth are being enjoyed by far too few people When wealth captures government policymaking, the rules bend to favor the rich, often to the detriment of everyone else Today we also have to say “thou shalt not” to an economy of exclusion and inequality Poverty matters; injustice matters. Mere inequality is beside the point. I didn’t come into politics to make sure David Beckham earns less money 3

Inequality: what worries us? Inequality of what – and how much is a bad thing? ‘Wealth versus capability’ ‘Opportunity versus outcome’ ‘Absolute versus relative deprivation’ Social mobility versus ‘steady state’ inequality and poverty Interlocking disparities – gender, wealth and location 4

5 Source: An inequality snapshot

World poverty trends – two scenarios to 2030 Source: Brookings 2013

Changes in share of national consumption by decile Source: Brookings 2013

Projected and actual change in poverty incidence Zambia Poverty should have fallen but increased Nigeria Poverty increased more than anticipated Source: Brookings 2013

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The wealth effect: People from the poorest households who are in education poverty 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Philippines Turkey Vietnam Egypt Kenya Congo India Nigeria Yemen Nepal Pakistan Morocco Senegal Chad Burkina Faso Share of the population with less than 4 and less than 2 years of education Extreme education poverty People with less than 2 years of education Education poverty People with less than 4 years of education The gender effect: Girls from the poorest households who are in education poverty In Yemen, the poorest 20% of households have an education poverty incidence double the national average And, for girls from the poorest 20% of households, the proportion triples. The education poverty threshold (age 17-22)

Richest 20% Poorest 20% Poor, rural Hausa girls Rich, rural girls Poor, urban boys Poor, rural girls Nigeria Rural Hausa Rich, urban boys Urban Rural Urban Rural Rich, rural boys C. A. R. Chad Bangladesh Cameroon Honduras Indonesia Bolivia Cuba Ukraine 14 Average number of years of schooling (Age group years) Education poverty Extreme education poverty 3.3 years 6.4 years 3.5 years 9.7 years 0.5 years 10.3 years 2.6 years 0.3 years Boys Girls 6.7 years 10 years Education disparities in Nigeria The case of Nigeria Source: UNESCO GMR

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‘Progress’ on child survival 14