Wednesday, February 4, 2015

inequality in South Asia

World bank report can be justified by charity group Oxfam that said “The richest one percent of the world’s population will have more wealth than the remaining 99 percent by next year."
The reasons behind growth of inequality are:
1. the greater proportion of the population in South Asia people lives in rural areas;
2. the incidence of poverty tends to be higher in rural than in urban areas.
3. Trade liberalization has flooded the markets with cheaper and higher-quality goods and services, it has also engendered an influx of foreign participation in South Asia, it devastated small and local businesses, and created a substantial discrepancy between the incomes of the wealthy and the impoverished population.
4. Poverty impacts women and men differently and a number of factors, such as biased macroeconomic and institutional structures, discriminatory laws and customs, and societal attitudes make it more likely that women will fall into and remain in poverty than men.
Measures to Bridge Them:
1. Fairer Tax code is vital and easy to implement. Increasing progressive taxes such as the higher rate of income tax from 30% to 60% will take more income from those on high income levels. This enables cuts in regressive taxes and increased benefits which help increase the income of the poor. This can be an effective way for reducing relative poverty.
2. Government spending on education, health and skill development should be progressively increased.
3. It is also necessary to decrease Birth rate of population, China with its one-child policy achieved better results than other south Asian nations
Government should change its economic policy of neo-liberalism to fabianism for achieving better distribution of resources to masses.

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