Reducing inequalities and ensuring no one is left behind are integral to achieving the Sustainable Development Goals.
Inequality within and among countries is a persistent cause for concern. Despite some positive signs toward reducing inequality in some dimensions, such as reducing relative income inequality in some countries and preferential trade status benefiting lower-income countries, inequality still persists.
COVID-19 has deepened existing inequalities, hitting the poorest and most vulnerable communities the hardest. It has put a spotlight on economic inequalities and fragile social safety nets that leave vulnerable communities to bear the brunt of the crisis. At the same time, social, political and economic inequalities have amplified the impacts of the pandemic.
On the economic front, the COVID-19 pandemic has significantly increased global unemployment and dramatically slashed workers’ incomes.
COVID-19 also puts at risk the limited progress that has been made on gender equality and women’s rights over the past decades. Across every sphere, from health to the economy, security to social protection, the impacts of COVID-19 are exacerbated for women and girls simply by virtue of their sex.
Inequalities are also deepening for vulnerable populations in countries with weaker health systems and those facing existing humanitarian crises. Refugees and migrants, as well as indigenous peoples, older persons, people with disabilities and children are particularly at risk of being left behind. And hate speech targeting vulnerable groups is rising.
Inequality within and among nations continues to be a significant concern despite progress in and efforts at narrowing disparities of opportunity, income and power. Income inequality continues to rise in many parts of the world, even as the bottom 40 per cent of the population in many countries has experienced positive growth rates. Greater emphasis will need to be placed on reducing inequalities in income as well as those based on other factors. Additional efforts are needed to increase zero-tariff access for exports from least developed countries and developing countries, and assistance to least developed countries and small island developing States.
- In more than half of the 92 countries with comparable data during the period 2011–2016, the bottom 40 per cent of the population experienced a growth rate that was higher than the overall national average. However, the bottom 40 per cent received less than 25 per cent of the overall income or consumption. In many places, the increasing share of income going to the top 1 per cent of earners is of significant concern.
- Robust and sound financial systems are essential for supporting equal access to financial services. High loan asset impairment, measured by the ratio of non-performing loans to total loans for deposit takers, is a potential risk to the soundness of the banking system. For almost half of the 138 reporting countries, the percentage of non-performing loans to total loans was less than 5, while the average median for the period 2010–2017 was 4.3 per cent.
- While countries in developing regions represent over 70 per cent of the membership of the General Assembly and World Trade Organization, which utilize a one member, one vote system, their voting share in other international organizations remains far below these levels. Governance reforms are being negotiated at the International Monetary Fund, and changes were adopted at the World Bank in October 2018. However, full implementation will leave developing countries with just over 40 per cent of the voting rights, still short of the 75 per cent they represent in World Bank membership in terms of the number of countries.
- Duty-free access continued to increase for least developed countries, small island developing States and developing regions at large. More than 50 per cent of exports from developing countries are now eligible for duty-free treatment. The increase of duty-free access in world markets was the largest for least developed countries, namely in the industrial and agricultural sector.
- In 2017, total receipts by developing countries from donors of the Development Assistance Committee of the Organization for Economic Cooperation and Development, multilateral agencies and other key providers were $414 billion, of which $163 billion were ODA. Total ODA to small island developing States from all donors was $4.3 billion in 2017, a decrease of 33 per cent in real terms over 2016, due to exceptional debt relief operations for Cuba in 2016.