How to tackle the inequality pandemic

From the exercise of global power to racism, gender discrimination and income disparities, inequality threatens our wellbeing and future. We desperately need new thinking to halt and reverse it. We often hear that a rising tide of economic growth lifts all boats.

 But a rising tide of inequality sinks all boats. High levels of inequality have created the global fragility being exposed and exploited by Covid-19.

The virus is shining a spotlight on inequalities. It poses the highest risk to the health of the most vulnerable, on whom its social and economic impact is concentrated.

Unless we act now, 100 million more people could be pushed into extreme poverty and we could see famines of historic pro-portions.

RAISING VOICES

Even before Covid-19, people were raising their voices against inequality. From 1980-2016, the world’s richest one per cent captured 27 per cent of the total cumulative growth in income. But income is not the only measure of inequality.

People’s chances in life depend on their gender, family and ethnic background, race, whether or not they have a disability, and other factors. Multiple inequalities intersect and reinforce each other across the generations For example, more than half of 20-year-olds in countries with very high human development, and three per cent in low ones, are in higher education. More shocking, 17 per cent of the children born 20 years ago there have died.

The anger fuelling recent social movements, from the anti-racism campaign around the world over George Floyd’s killing to the chorus of brave women calling out the powerful men who have abused them, is another sign of disillusionment with the status quo.

 And the two seismic shifts of our age — the digital revolution and the climate crisis — threaten to entrench inequality and injustice even more deeply.

HUMAN TRAGEDY

Covid-19 is a human tragedy. But it has also created a generational opportunity to build a more equal and sustainable world, based on a New Social Contract, and a New Global Deal. Education and digital technology must be two great enablers and equalisers.

We need fair taxation on income and wealth, and a new generation of social protection policies, with safety nets including universal health coverage and the possibility of a universal basic income.

The New Social Contract will need a New Global Deal to ensure power, wealth and opportunities are shared more broadly and fairly. The latter must be based on a fair globalisation, human rights and dignity, living in balance with nature, respect for the rights of future generations and success measured in human rather than economic terms.

We need global governance that is based on full, inclusive and equal participation in global institutions. We need a more inclusive and balanced multilateral trading system that enables developing countries to move up global value chains.

Reform of the debt architecture and access to affordable credit must create fiscal space to generate investment in the green, equitable economy.

The New Global Deal and the New Social Contract will put the world back on track to realise the promise of the Paris Agreement on Climate Change and achieve the Sustainable Development Goals. Our world is at breaking point. But by tackling inequality, we can find our way to better days ahead.

Mr Guterres is the UN Secretary-General. [email protected] or @unicnairobi