Wealth Gap Harms Countries' Growth - OECD

Written By Unknown on Selasa, 09 Desember 2014 | 23.12

The growing wealth gap between the middle class and poor households is the single biggest factor affecting a country's economic growth, according to a new global report.

The Organisation for Economic Co-operation and Development (OECD) said income equality has a "significant impact" on a nation's ability to expand.

The report looked at countries around the world and estimated by how much growing inequality harmed potential expansion.

"The single biggest impact on growth is the widening gap between the lower middle class and poor households compared to the rest of society," the Paris-based group said.

"Education is the key - a lack of investment in education by the poor is the main factor behind inequality hurting growth."

It said almost nine percentage points were missed from the UK's GDP over the two decades preceding the banking-led global financial crisis.

This compared to 10 percentage points in Mexico and New Zealand, and around 6.5% in the US, Italy and Sweden.

It added that greater pre-crash equality in Spain, France and Ireland helped those countries' growth rates.

The OECD, previously described by The Economist as a "rich-country think tank", said its results showed inequality needed to be central to policy formulation.

It said inequality affects growth by undermining education opportunities for children from poor backgrounds, which in turn hampers social mobility and skill development.

By contrast the OECD, which represents 34 countries, said there was little or no effect on people with middle or high levels of parental education.

"This compelling evidence proves that addressing high and growing inequality is critical to promote strong and sustained growth and needs to be at the centre of the policy debate," OECD secretary-general Angel Gurria said.

"Countries that promote equal opportunity for all from an early age are those that will grow and prosper."


Anda sedang membaca artikel tentang

Wealth Gap Harms Countries' Growth - OECD

Dengan url

http://plumpangraya.blogspot.com/2014/12/wealth-gap-harms-countries-growth-oecd.html

Anda boleh menyebar luaskannya atau mengcopy paste-nya

Wealth Gap Harms Countries' Growth - OECD

namun jangan lupa untuk meletakkan link

Wealth Gap Harms Countries' Growth - OECD

sebagai sumbernya

0 komentar:

Posting Komentar

techieblogger.com Techie Blogger Techie Blogger