Essay Example on Poverty and Income Inequality: A Global Reality

Introduction

The global societal issue chosen in week one discussion and that will be further be addressed in this paper is poverty and income inequality. The paper introduces the topic with a working thesis statement and provides an annotated bibliography on the given topic.

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Thesis Statement

Poverty and income inequality are global realities that hit many countries all over the world. Freeman (2018) calls poverty and income inequality the current global reality based on the wealth distribution between nations. The effects of this global reality are adverse to society as it affects employment rates, health outcomes, and racial classes for the global poor. Studying the topic of poverty and income inequality is essential as it is a global societal issue that continues to become widespread and affecting economic growth with is not equitably shared in the worlds' countries (OECD, 2016). Ethically, the financial crisis widens the gap between the rich and poor in a way that extends the adverse effects of poverty and income inequality to the society. Globalization, changes in policy fashion as well as redistribution and technological change are other factors associated with the growing poverty and income inequalities in the world. However, measures such as social and labor market policies can be applied to address the problem of poverty and income inequality in society. Poverty and income inequality is a major global societal issue impacted by globalization, unemployment rates, economic crisis, technological change, and policy changes. However, adequate measures such as the implementation of social and labor market policies can help address the issue and help in reducing the gap between the rich and the poor in society.

Annotated Bibliography

Wike, R. (2013, November 15). The global consensus: Inequality is a significant problem. Pew Research Center.

The article covers the subject of poverty and income inequality, focusing on the wealthy and middle-income class people in developing nations. The study by the Pew Research Center utilized a survey of 1,592 leaders in different sectors of the economy to identify the top ten trends that faced the world in the year 2014. According to Wike (2013), income disparity and poverty are at the top of the list. The middle and wealth income countries have different economic experiences when compared to the poor since the global financial crisis in the year 2008. Inequality is identified as a significant threat to the worldwide economy. Many people in developing nations are experiencing economic growth while in wealthy countries, the financial challenge is the greatest. Inequality in income distribution between the rich and the poor has not been given the deserved attention. Education challenges, public health problems, gender discrimination, and structural unemployment describes the presence of income inequality and poverty as a global societal issue.

OECD. (2016). OECD Inequality Update 2016: Income inequality remains high in the face of a weak recovery. Center for Opportunity and Equality.

In this article, the OECD (2016) examined the subject of income inequality concerning economic recovery in the world. Data from the income distribution database of the OECD was used to evaluate the estimates given to income inequality and poverty when considering the economic shift in the financial year 2013/2014. The results revealed critical patterns of income inequality despite the anticipated economic recovery. The article is essential in understanding the worlds' economic situation as influenced by factors influencing income inequality as well as poverty. Based on the findings, the benefits of economic recovery have not been shared evenly between the rich and the poor. Thus income inequality and poverty remain a global societal issue that needs to be addressed. Similar to the findings of Wike (2013), the OECD report shows that the economic recovery is weak, and that impacts on the improvement in the income distribution. The low earning people continue to remain poor due to income inequality from long-term unemployment and slow growth in wages. The elite class gains more wealth over time as a result of higher-incomes gained.

Qasim, M., Pervaiz, Z., & Chaudhary, A. (2020). Do poverty and income inequality mediate the association between agricultural land inequality and human development? Soc Indic Res.

Qasim et al. (2020) examined the relationship between agricultural land inequality as well as human development and the role played by income inequality and poverty. The researchers utilized panel data from various Multiple Indicator Cluster Survey for the period 2003-2014 and Pakistan Social and Living waves to calculate the Human Development Index for various districts in Punjab (Pakistan). The findings reveal that there is a negative relationship between agricultural land inequality and human development. Poverty and income inequality play a mediating role in the adverse effect of agricultural land inequality on human development. The study relates to the finds of Wire (2013) and the OECD (2016) report that low-income earnings impact the increase of poverty, which in turn affects inequalities in the distribution of income. The authors noted that agricultural land inequality is harmful to human development as it causes poverty and income inequality. Strategies such as redistributing agricultural land through land reforms are essential to decrease the poverty and income inequality levels in nations such as Pakistan and the global society.

Rabiul, I., Ahmad, B., Irwanshah, Z., & Jeya, M. (2017). Impact on poverty and income inequality in Malaysia’s economic growth. Problems and Perspectives in Management, 15(1), 55-62.

The study on the effect on poverty and income inequality in the economic growth of Malaysia presents the issues as extreme in the global society and especially in Malaysia (Rabiu et al., 2017). A questionnaire survey was used to collect data from working individuals in Ipoh, Perak. The authors noted that an increase in income inequality and poverty impacts on the economic growth of a nation. The issues are more prevalent in rural areas when compared to the urban regions of Malaysia. The government of Malaysia has taken the initiative to eradicate poverty and income inequality through the implementation of education policy, government, non-government and financial assistance.

Karagiannaki, E. (2017). The empirical relationship between income poverty and income inequality in rich and middle-income countries. CASE Papers, (206). London School of Economics and Political Science, London, UK.

The study on the observed association between income inequality and poverty in rich and middle-income nations used statistics from different databases such as the European Union Statistics on Incomes and Living Conditions, the World Wealth and Income Database, as well as the OECD Income Distribution Database. Case studies with distributional statistics of the national databases from the U.S., UK, Denmark, and Sweden were used to supplement the analysis of information obtained from the databases. The results revealed that there is a healthy and positive cross-country relationship between poverty and inequality. However, the driving forces on the relationship between poverty and income inequality are different. The experiences of income inequality and poverty levels are different for every country. Poverty risk is high in countries with greater income inequality. In nations with high initial income inequality, poverty risk is influenced by falls in the average household income.

References

Freeman, S. (2018). The Current Global Reality: Poverty and Income Inequality. Seminars in Pediatric Neurology, 27, 1-9. https://doi.org/10.1016/j.spen.2018.03.001

Get rights and contentKaragiannaki, E. (2017). The empirical relationship between income poverty and income inequality in rich and middle-income countries. CASE Papers, (206). London School of Economics and Political Science, London, UK. http://eprints.lse.ac.uk/86917/3/casepaper206.pdf

OECD. (2016). OECD Inequality Update 2016: Income inequality remains high in the face of a weak recovery. Center for Opportunity and Equality. https://www.oecd.org/social/OECD2016-Income-Inequality-Update.pdf

Qasim, M., Pervaiz, Z., & Chaudhary, A. (2020). Do poverty and income inequality mediate the association between agricultural land inequality and human development? Soc Indic Res. https://doi.org/10.1007/s11205-020-02375-y

Rabiul, I., Ahmad, B., Irwanshah, Z., & Jeya, M. (2017). Impact on poverty and income inequality in Malaysia’s economic growth. Problems and Perspectives in Management, 15(1), 55-62. doi:10.21511/ppm.15 (1).2017.05

Wike, R. (2013, November 15). The global consensus: Inequality is a significant problem. Pew Research Center. https://www.pewresearch.org/fact-tank/2013/11/15/the-global-consensus-inequality-is-a-major-problem/