Inclusive development and minimization of income inequality problem are introduced in this essay. Starting from inclusive development, we should mention that, nowadays, this is one of the main problems of the world. A part of people of the world, especially in poor countries is excluded from the economic development. The reasons of that are their differentiations and the conditions that they live today. It is very important for countries to promote inclusive development and to create a legal framework for minimizing income inequality.
As an example for promotion of inclusive development, I will mention UNDP case. As it’s known UNDP has policies in this regard. Their main goals are to reduce the poverty in the countries and to increase the effects of economic development to all parts of societies, to include them in decision-making process, to improve their living standards etc. In this regard, UNDP has a several directions that can accelerate this process. UNDP has a shared work with countries. They try to assist governments in the creation of new strategies for development and new policies for reduction poverty in their countries. UNDP helps governments to establish monitoring system for poverty and to establish a data system for the generation of evidences. Also, UNDP plays a role for ensuring countries with policy advices for social sustainability and for plans against poverty level. Other contributions of UNDP as evidence are support of countries with reviews of budgets, set up new partnerships with poor countries for provision of sustainable inclusive development. All these points are the evidences in case of UNDP for promotion of inclusive development.
The second part is about what kind of policies are likely to minimize income inequality. As evidence, Germany’s policies in this case were introduced. Germany is one of the countries in the world that has a low level of income inequality. German governments faced a lot of problems in wealth inequality after the reunification of West and East Germany. Today, government realizes programs for decreasing of income inequality, design tax system, transfer system of country and several such types of policies in terms of minimizing income inequality. As a result, today German has a satisfactory level of income inequality. But exactly, their policies are not perfect and have a need for improvement. Government promotes new policies for decreasing income inequality in Germany.
- UNDP official website
- APCD, Community-based Inclusive Development, principle and practice.
- Florian, R. Rose, C. Tilstone, Promoting inclusive practice
- M.De. Nardi, L. Ren, C. Wei, Income inequality and redistribution in five countries
Author: PhD candidate, Tahmasib Alizada, UNEC, International Economics Chair