Study “Reducing inequality requires redistribution. Social protection ensures progress towards reaching SDG10” (pdf version)
Preface
Together with its partner organizations worldwide, Bread for the World continues to observe the negative impact of high levels of social inequality, both within and between countries. Inequality hinders the reduction of poverty, affects human dignity and violates human rights. Moreover, due to its negative impact on social, economic and political participation, inequality endangers the core values of democracy and challenges social cohesion and peace. It will be impossible to achieve the sustainable development goals, if inequality is not reduced.
Overcoming inequality requires transformative change of national and international institutions and the addressing of imbalances of power, especially within economic systems, trade regimes and the international financial architecture. It also requires empowerment of those left furthest behind, who are often trapped in a vicious cycle of poverty, discrimination and exclusion.
Fiscal and social policy alone cannot overcome the multifaceted problem of inequality, but they form an important foundation that can be built upon. Social protection facilitates direct redistribution of disposable income as a corrective intervention to deal with the often extremely inequitable market distribution of income and wealth, which exists in many countries. Even more importantly, social protection can ensure livelihood security and guarantee access to public services like education and health. This improves the basic situation for disadvantaged groups within society and creates access to opportunities for all. If well designed, social protection systems contribute to reducing inequality and exclusion, and enable self-determined participation in social, economic and political affairs.
This study reviews the scope for influencing social inequality through social protection. It illustrates which instruments social protection can use and why finance always has to be part of the overall analysis. The author examines the question of why there is such a large variance in the impact on equality resulting from the social protection systems in operation in different countries. Similarly, the study investigates how inequality between countries has evolved. Also under discussion are the framework conditions that place constraints on redistributive social and fiscal policy in the global south and the resulting responsibilities for national governments and the international community.
Nicola Wiebe
Social Protection Policy Advisor
Brot für die Welt (Bread for the World)
