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| Sunday, 28 August 2005 |
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Features |  |
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The
inequality predicament
The Report on the World Social Situation 2005: the Inequality Predicament released by the United Nations countries that were once able to achieve growth with equity have experienced a sharp increase in income inequality in recent years. Since the 1990s, inequality has become a common feature in several Asian countries, even as average per capita income has risen. In some cases, the increase in income inequality appears to be closely related to a growing distance between the urban and rural areas; this type of income inequality is particularly stark in China, and to a lesser extent, India and Thailand. In the case of China, half of the overall increase in income inequality since 1985 is attributable to differences in income distribution among the country's regions. Inequality has also increased during the 1990s in the Central Asian republics. Population In Tajikistan, over the decade, a 14 per cent increase in the country's population was accompanied by a 64 per cent decline in gross domestic product (GDP) and escalating poverty levels. In Azerbaijan, sound macroeconomic policies have ensured economic stability and high real GDP growth; however, these economic successes have not been reflected in the lives of people, 49 per cent of whom live in poverty. In 2002, about half of the population in Kyrgyzstan lived below the poverty line. Although the overall level of unemployment rose in East Asia, it remained well below those of other regions. The East Asia unemployment rate stood at 3.3 percent in 2003, compared to 12.2 in the Middle East and North Africa, and 8 per cent in Latin America and the Caribbean. Informal South-East Asia registered the most substantial increase in unemployment between 1993 and 2003, largely because of the high annual labour force growth rate and the fact that some of the countries in the region, including Indonesia (the largest), were slow to recover from the Asian financial crisis of 1997/98. The Report discusses how the informal economy, sometimes referred to as a "necessary survival strategy", expands during periods of economic adjustment or transition, as experienced by the countries of South-East Asia in the 1990s. The share of informal workers in the non-agricultural labour force has grown to about 65 per cent in Asia. The human impact of these crises included increased unemployment, poverty and inequality, and the erosion of social cohesion. Impact The AIDS epidemic threatens to reverse the progress made in the past two decades; it also illustrates the strong link between poverty and health inequalities. According to the Joint United Nations Programme on HIV/AIDS, South and South-East Asia represent the second hardest hit region (after sub-Saharan Africa) with 7.1 million people currently living with HIV/AIDS. Thailand is known for its strong prevention policies that were instituted early in the epidemic with notable political and financial backing. Disaster Now Thailand, along with other parts of the region, is concerned with rising incidence of HIV/AIDS among the youth population. Though we will never live in a world that is void of natural disasters, the earthquake and tsunami disaster that devastated parts of South-East Asia in late December 2004 demonstrated the effects of unequal socio-economic vulnerabilities. No natural disaster in recent history has directly affected so many people in so many countries, with the gains made by the rural poor through hard work reversed so suddenly. Where the economic impact was felt most severely was at the local and community levels, as damage was largely confined to rural areas rather than key economic and densely populated urban centres and industrial hubs. Inequalities Stark inequalities in the ability to cope with and recover from the effects of the disaster were evident in the relief and some of the subsequent rebuilding efforts. Studies indicate that inequality declines as the average level of educational attainment increases. Recognising these farreaching implications, many countries in Asia have given priority to ensuring universal access to and coverage of basic education, especially for girls, and to expanding secondary education. Education is typically seen as a means of narrowing inequalities, and projections indicate that the region as a whole will reach universal primary education in the next few years. However, the transition from school to work is one area of concern that needs more attention. In the coming years, Asia and the Pacific will account for the vast majority of the increase in the youth population. In some Asian countries, such as Afghanistan, Cambodia, Iran, the Lao People's Democratic Republic, Nepal and Pakistan, at least half of the population is aged below 20 years. Region In many countries of the region, youth unemployment constitutes over 30 per cent of total unemployment. The bulk of new jobs are generated by the informal economy, where there is high youth presence and where there is often little respect for the rights and legal protections of workers. Youth often work for long hours with low job security and low pay; wages are estimated to be far below those of the formal sector while the working conditions are generally more perilous. No matter what part of the economy youth are working in, they are also more vulnerable to any shocks in the labour market. |
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