Gender issues, racial disparities, and the wage gap, among others, found their place during the deliberations on increasing inequality at the B20 India Summit on August 26.
Global executives across countries and international trade bodies recognise rising inequality as the number one global issue that can turn down the economic growth trajectory of the world.
Though inequality among countries has decreased, there is an increase in inequality within those countries, they said.
"Inequality is the number one issue that we face today....Cross-country income gaps are narrowing. However, 70 percent of the current population lives in a country where the income gap is widening," said Bob Sternfels, Global Managing Partner, McKinsey & Company, USA, at the panel in New Delhi.
In India, the top 10 percent of the income population has grown 100 percent faster than the bottom half, he added.
Industry leaders cited that the current increase in inequality is the consequence of COVID-19, the Russia-Ukraine war, and protectionism and continues to dampen growth that has been achieved in the last few decades.
In a move to change the narrative about trade focused on just economic growth, John Denton, Secretary General of the International Chamber of Commerce (ICC), said, "We (ICC) want to reanimate trade as a driver to decrease inequality."
"We don't see trade being balanced with growth or inclusion. We must realise that trade is an important driver for decreasing inequality and increasing inclusivity, and it is an integral vector that holds critical importance," he said.
Supporting the argument, his Chinese counterpart said that the ultimate goal of growth is to increase the happiness of the people rather than the deposits in their bank accounts.
"We (China) have made a lot of investments in green energy and renewable energy," said Sun Xiao, Secretary General of the China Chamber of International Commerce (CCOIC), China.
Against inequality
Despite the world-facing group of trends posing serious challenges to inclusion, such as geopolitical fragmentation, increasing trade protectionism, and climate change, the hope to change the tide of rising inequality remains undeterred.
Citing India as a positive indicator, Martin Schroeter, Chairman and Chief Executive Officer (CEO) of Kyndryl, USA, highlighted that the world's largest democracy has used technology to bring people into the economy through straightforward approaches.
"The Indian government has connected the people by giving them access to the internet and technology and bringing public and private institutions together to educate people on how to use it," he said.
India witnessed 135 million (13.5 crore) people moving out of multidimensional poverty between 2015-16 and 2019-21, with the fastest reduction in Uttar Pradesh, Bihar, Madhya Pradesh, Odisha, and Rajasthan, according to a Niti Aayog report released in July 2023.
"India has registered a significant decline of 9.89 percentage points in the number of multi-dimensionally poor from 24.85 per cent in 2015-16 to 14.96 per cent in 2019-21," it said.
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