Worlds apart in wealth and income

Wealth and poverty in an unequal world are once again highlighted in the authoritative Human Development Report published yesterday…

Wealth and poverty in an unequal world are once again highlighted in the authoritative Human Development Report published yesterday by the United Nations.

It shows that the world's richest 500 individuals have a combined income greater than that of the poorest 416 million people. Some 2.5 billion people living on less than two dollars a day make up 40 per cent of the world's population but account for 5 per cent of global income. In contrast, the richest 10 per cent account for 54 per cent of it.

These figures dramatise the task facing world leaders who gather in New York next week to reaffirm the Millennium Development Goals for relieving primary poverty by 2015. The report argues trenchantly that this year marks a crossroads on whether that commitment succeeds or fails. In Ireland's case, much hangs on the Government's willingness to move rapidly towards the UN aid target.

The report has the major merit of providing comparable statistical measurements of absolute and relative wealth and poverty. Not all of the richest states are the most developed ones according to the approach adopted - although they are undoubtedly closely related. Ireland is ranked eighth in the world for human development, up from tenth position in the 2002 report, which is a major achievement. But it remains one of the most unequal states among a selected group of 18 rich states, ranking behind Italy and the United States on a list in which Sweden, Norway and the Netherlands are the most equal ones.

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Such factors as differential life expectancy, educational attainment and adult literacy between rich and poor people here contribute to this inequality. So does the poverty rooted in certain areas of the State, including Ballymun, Ballyfermot, west Kerry and parts of Mayo, identified in a report by Area Development Management, also published yesterday. But, usefully, the Human Development Report clarifies its measurement of Irish poverty levels this year by distinguishing between definitions which take account of the fact that, although low incomes rose at a consistently slower rate than higher ones during the strong economic growth since the mid-1990s, poverty measured against a 1994 baseline has been almost halved, including by higher and more effective social transfers.

This leaves plenty of scope for argument about wealth distribution and social justice in Ireland, but puts it in a more sophisticated statistical framework. The debate casts light on the levels of social capital, participation and trust highlighted by the Taoiseach's enthusiasm for the ideas put forward by the sociologist, Robert Putnam, who addressed the Fianna Fáil party's gathering this week. Social capital is eroded by growing and persistent inequality. The Human Development Report's comparative listings furnish the evidence. It is to be hoped that political disagreements and debate on these issues will in future be informed by the report published yesterday.