Сivil 20 Proposals for Strong, Sustainable, Balanced and Inclusive Growth
Economic inequality is increasing both within and across countries. Growing inequality has negative economic, social and political consequences, it constrains economic growth, undermines social cohesion and political stability. Eradicating causes of inequality and turning structural barriers to equality into opportunities is fundamental for generating strong, sustainable, balanced and inclusive growth. Transition to this growth model will depend on G20 coherent policy actions globally and nationally.
In the run up to the St. Petersburg G20 summit the Civil 20 initiated preparing a report and recommendations to G20 focused on surmounting the risks originating from growing income inequality. A special Task Force, bringing together experts from G20 member countries has been established to draft the report. Presented and discussed within the Russian G20 Presidency Civil Society Track (www.g20civil.com), the report provides an independent analysis and proposals for a dialogue between a wide range of stakeholders and the G20 governors on the G20 concerted policies and actions to improve economic equality within their countries and beyond.
This set of policy recommendations on how G20 can address inequality takes full account of the existing authoritative, best available, consensus, analysis and evidence of the IMF, OECD, UNDP, other international organizations and relevant scholarly, civil society and policy communities, as summarized above. It builds directly upon the extensive evidence and analysis of the causes and practical policy cures for income inequality in the G20 member countries, as identified in the country reports prepared by and for members of the Civil 20 Task Force on Equity (currently including Australia, Canada, China, France, India, Indonesia, Mexico, Korea, Russia, Turkey and the US).
The Civil 20 propose that G20 leaders at their St. Petersburg summit can act together to improve income and economic equality within their countries and beyond by agreeing the Saint Petersburg Initiative for Strong, Sustainable, Balanced and Inclusive Growth affirming the value of equality and inclusion along with economic growth and efficiency.
Inequality is a part of the economic reality of any society. It is also a constant focus of attention of academic community, from time to time becoming a matter of heated social and political debates. Social scientists consider the growth of income inequality as one of the major socio-economic risks posed by globalization. Inequality issues have acquired a particular importance in connection with the market transition of post-socialist countries, including Russia, where the ‘starting point’ of transformation was the centrally planned economy. The characteristic feature of the transition process has been a sharp increase in income inequality. In the late 1980s Russia, along with the Scandinavian countries was in the group of states with a low level of income inequality. At present, the scale of inequality in Russia is comparable to economies of Latin America. This note aims to provide a comprehensive analysis of income inequality in Russia for the period since the beginning of market reforms. The sources of data are both official macro-statistics and independent sociological surveys.