Daleep Mukarji
Director, Christian Aid

The Causes of Inequality

Inequality is a complex issue and varies both within and between countries and communities. An important determinant would be inequality of opportunity – lack of access to good education, healthcare, clean water, poor economic and social services, markets, information and the lack of the democratic right to participate in decision making processes. Some inequality is also caused by geo-climatic conditions affecting the amount of arable lands and the risk of natural disaster.

A key factor, and clearly linked to the inequality of opportunity, would be the unbalanced power structures. Often the root cause of poverty, marginalisation and injustice is the unequal power distribution – which globally is seen in unfair trade, the effect of debt on nations and the underdevelopment of the South. There are historical causes linked to colonial impositions, extraction of resources (human and natural) and the reality of globalisation and international affairs seems to perpetuate power and benefits to the rich nations and national elites. Within the south there are cultural social, political and historical reasons today for poor governance and power in certain groups – due to religion, ethnicity or gender.

Key Reforms

Briefly:

(a) There needs to be more power and authority for the UN – true global governance must lead to some element of global government. This includes a reform of the UN itself. This could prevent separate national interests limiting optimal global outcomes for global public good (e.g. climate change).
(b) Urgent and essential restructuring of key intergovernmental bodies – especially the World Bank and the IMF – to be more accountable and less controlled by the voting rights of the rich nations. The Board of the World Bank must have a stronger southern voice. This may help to promote policies and action that ultimately benefit the weaker nations and their populations.
(c) Address lack of accountability of large business (the TNCs) by introducing binding and universal rules for minimum standards of corporate behaviour. It would be vital to cap, or remove altogether, corporate funding of national governments, political contributions and power in government decision making. The World Trade Organisation needs to develop appropriate rules for International Trade that are fair and flexible for poor countries and contributes to poverty reduction. This should include some regulation of TNCs.

Strategies and Tactics

Popular campaigning and lobbying to build an international movement for social justice can influence both key national governments and the international community. Serious advocacy, research and education is necessary for 'making the case' for reform of global governance and the appreciation that in an interdependent world it is in the enlightened self interest of all nations and people to have a healthy, just and sustainable world community. The role of civil society organisations and networks to help reform and influence the decisions of governments and international institutions is slowly being appreciated. This must grow. A key focus for advocacy will be the Governments and the meetings of the G8 countries so that they can provide leadership for change. Yet this 'special group' perpetuates power in the rich countries so we need to see reform and some clout in the UN, the World Bank, the IMF and the WTO where the south can get decisions which contribute to social development. Here again an international movement for global social justice can help make a difference.

Placed on Fabian Global Forum, May 2002