Policy highlights:

  • The lack of transparency about the dynamics driving inequality and the extent to which it exists limits the possibility for peaceful, democratic discussions about what constitutes an acceptable level of inequality and how to reach it. The World Inequality Report 2018 brings the latest and most complete data to the public arena, with the aim of informing debates about global, regional and national inequality. At the global level he top 1% richest individuals in the world captured twice as much growth as the bottom 50%. In addition, globally income growth has been slow or non-existent for the group between the bottom 50% and top 1%.
  • Challenges specific to Sub-Saharan Africa include: 1) low growth, which has increased global inequality (incomes in Sub-Saharan Africa are only 0.3 times of the world average incomes today), 2) stable, but extreme levels of, inequality (in 2016, only 12% of national income was received by the bottom 50% in the region), and 3) a lack of data, which is common for low- and middle income countries in general (e.g. the income-tax data for Ghana, Kenya, Tanzania, Nigeria, and Uganda covers less than 1% of the estimated adult population of these countries). Furthermore, the available data suggests that inequality is greater than previously assumed.
  • National policies and institutions play a clear role in shaping inequality. It is recommended that governments should:
  1. adopt progressive tax policies (those earning higher incomes should pay more taxes, with a specific focus on inheritances, which will add to public income and reduce the motivation of elites to capture higher shares of e.g. incomes);
  2. cooperate in creating a global financial register that records the ownership of financial assets (as the Paradise Papers revealed, tax evasion is one of the main challenges of tax systems, with tax havens holding around 10% of global GDP);
  3. provide more equal access to (higher) education and to well-paying jobs;
  4. invest in the future (especially in education, health, and environmental protection) to address current inequalities in income and wealth levels, and to prevent further increases in these inequalities.
Share this post

Related items

Digital Skills for Youth Employment in Africa

Digitalisation and technological advancements are changing the world of work and the skills needed for employment. In Sub-Saharan Africa alone an estimated 230 million jobs will require digital skills within the next decade offering employment opportunities for its ever growing youth population. However, young people in Africa face several barriers that prevent them to obtain the types of skills required for employment. The evidence synthesis paper published by INCLUDE explores the challenges and opportunities of this digital transformation and presents recommendations of how to equip Africa’s youth for the future of work.

+2
By Ruth van de Velde +2 more
A decent proposal: self-employment for women in Uganda

This blog is part of a case study that examined decent work in the context of the work lives of self-employed and rural women in central Uganda in collaboration with 100WEEKS, a cash transfer graduation programme.

Six key insights for green jobs for youth in Africa

The African green transition has the potential to create a plurality of job opportunities that help tackle the negative consequences of climate change: green jobs. To find out what is needed to facilitate green jobs for young people in Africa, INCLUDE and Palladium engaged in a collaborative research project in the context of the Challenge Fund for Youth Employment.

Siri profile picture
youth at work 2 pager
Youth @ Work: 5 pathways for change

How to address the African missing job crisis through green and digital jobs, while assuring that none is left behind? INCLUDE's recently published evidence synthesis paper series provides a number of potential solutions: they were discussed in the webinar series Youth@Work, from which we present five key insights.

Maya Turolla Profile
AERC Regional Policy Forum summary

The AERC hosted a virtual Regional Policy Forum on 28 March 2022. The forum brought together key stakeholders who play important roles in shaping new research findings, paving new policy directions, and initiating innovative practices in the areas of youth and employment.