GLOBAL INCOME INEQUALITY AND POVERTY REDUCTION: TRENDS AND REMEDIES

There is a global consensus that world economy needs not only grow faster, but also grow in a way that the poor receive a greater share of the benefits of that growth. It is well documented that income inequality is on the rise, with the richest 10% earning up to 40% of total global income. The poorest 10% earn only between 2% and 7% of total global income. After long time of neglect, inequality has re-entered the mainstream development policy agenda at both national and global levels indicating that relevant policies should be universal in principle paying attention to the needs of disadvantaged and marginalized populations. As highlighted in almost all SDG's documents, income inequality is a global problem that requires global solutions. This involves improving the regulation and monitoring of financial markets and institutions, encouraging development assistance and foreign direct investment to regions where the need is greatest. Facilitating the safe migration and mobility of people is also key to bridging the widening divide. SDG 10 encompasses 10 targets with the objective of promoting social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status. Achieving SDG 10 reaffirms that the 2030 development Agenda will focus not only on eradicating poverty but also on tackling inequalities in all its forms through adopting sound policies to empower the bottom percentile of income earners, and promote economic inclusion of all regardless of sex, race or ethnicity. This paper analyses the resent status of income inequality and its relationship with economic growth and poverty in selected developing countries. The paper highlights that there is a triangular relationship between income distribution, poverty and economic growth; while accelerated economic growth is a primary factor in reducing poverty, inequalities can constrain poverty reduction significantly.