French
Spanish
GLOBAL MOVEMENT FOR A CULTURE OF PEACE

On the left below, please find an article for the Culture of Peace News Network and on the right the discussion related to this article. You are invited to read and join in the discussion by clicking on any of the questions listed here, or, if you wish, you may enter a new discussion question as described on the bottom of this page. Please take the time to check one of the boxes below as to whether this article should be given a high priority, a medium priority or no priority

Learn Write Read Home About Us Discuss Search Subscribe Contact
by program area
by region
by category
by recency
United Nations and Culture of Peace
Global Movement for a Culture of Peace
Values, Attitudes, Actions
Rules of the Game
Submit an Article
Become a CPNN Reporter


Oxfam agrees with IMF on 'Redistribution, Inequality, and Growth'
an article by Oxfam

The IMF has released a discussion note, authorized for distribution by chief economist Olivier Blanchard, on the damaging effect of income inequality on economic growth and supporting redistributive efforts.



click on photo to enlarge

Titled “Redistribution, Inequality and Growth”, the paper finds extreme income inequality harmful for the pace and sustainability of economic growth. It also makes the case that redistribution efforts – including progressive taxation tax and spending on health and education – are pro-growth.

The IMF report says: “It would still be a mistake to focus on growth and let inequality take care of itself, not only because inequality may be ethically undesirable but also because the resulting growth may be low and unsustainable.” (page 25).

“The combined effects of redistribution are on average pro-growth” (page 4).

A recent report by Oxfam found that almost half the world’s wealth is owned by one percent of the population and that the bottom half of the world’s population owns the same wealth as the richest 85 people in the world.

Head of Oxfam’s Washington office Nicolas Mombrial said: “Oxfam agrees with the IMF – extreme inequality is damaging not only because it is morally unacceptable, but it’s bad economics.”

"The IMF has debunked the old myth that redistribution is bad for growth and demolished the case for austerity. That redistribution efforts -essential to fight inequality- are good for growth is a welcome finding. Low tax and low public spending are clearly not the route to prosperity.”

“This is a green light for governments to use fair tax systems and investments in health and education to reduce damaging income inequality.”

“In the bad old days, the IMF asked governments to cut public spending and taxes. We hope this research and Christine Lagarde’s recent statements are a sign that they are changing their tune.”

(Thank you to Janet Hudgins, the CPNN reporter for this article.)

DISCUSSION

Question(s) related to this article:


Can UN agencies help eradicate poverty in the world?,

* * * * *

Latest reader comment:

for an updated listing, click here

This discussion question applies to the following articles:

The Hungry Know No Peace
Report on the UN Millennium Development Goals: we can eliminate world poverty by 2030
Tackling Economic Poverty in Afghanistan
Oxfam agrees with IMF on 'Redistribution, Inequality, and Growth'
WFP Launches Major Study Into Brazil's Success In Buying From Smallholder Farmers
ONU: Líderes mundiales logran consenso sobre la nueva Agenda para el Desarrollo Sostenible
Les Etats membres de l’ONU s’accordent sur le nouveau programme de développement
UN: Consensus Reached on New Sustainable Development Agenda to be adopted by World Leaders in September
Developing Nations Seek Tax Body to Curb Illicit Financial Flows


This report was posted on March 15, 2014.