Fwd: No. 27422: Africa: Inequality is undermining democracy; the poor must claim their rights -- Economic Justice
Title: Africa: Inequality is undermining democracy; the poor must claim their rights
Author: Winnie Byanyima
Category: Economic Justice
Date: 11/3/2014
Source: East African (Kenya)
Source Website: http://www.theeastafrican.co.ke/
African Charter Article# 17: Every individual shall have the right to education, cultural life, and the promotion and protection of values.
Summary & Comment: "The agenda to end extreme poverty must be matched with one to end extreme and growing economic inequality. Both are historic challenges, and neither will be overcome in isolation... strong programmes for public services and social support must be built...urgent reform of tax systems at international, country, corporate and individual level is needed. Progressive tax policies are the most effective redistributive mechanism ...people must be paid a fair wage for their work...we need to confront inequality by backing people to claim their rights and hold their leaders to account."
Several African countries are among the fastest growing economies in the world today, and extreme poverty on the continent is in decline. Yet this impressive growth is not equitably shared. Sub-Saharan Africa is home to a third of the world's poorest people, and six of the 10 most unequal countries in the world. Over the past year, an overwhelming consensus has developed on the dangers of growing and extreme economic inequality globally.
A new report by Oxfam presents clear evidence: Today's extremes of inequality are threatening to set the fight against poverty back by decades. In Africa, the target of eradicating extreme poverty won't be met until 2075 unless there is a reduction in income inequality.
The agenda to end extreme poverty must be matched with one to end extreme and growing economic inequality. Both are historic challenges, and neither will be overcome in isolation.
The growing gap between rich and poor is not inevitable. It is the result of choices - and different choices can reverse it.
First, strong programmes for public services and social support must be built. Many African countries - thanks to wealth in minerals, oil and gas and other natural resources - can afford to fund essential services.
Yet today we see Ebola running out of control and thousands dying because chronic underinvestment in essential public services - health, education, water and sanitation - has driven these countries to this point of dysfunction.
Not only do social services save lives, but they are great equalisers. They can mitigate the worst impacts of skewed wealth and income distribution.
Second, urgent reform of tax systems at international, country, corporate and individual level is needed. Progressive tax policies are the most effective redistributive mechanism we have at our disposal to tackle the growing gap between rich and poor.
Governments need to ensure that the tax burden falls fairly so that those most able to pay contribute more, and put an end to fragmented global rules and tax loopholes that allow capital to haemorrhage out of Africa.
Third, people must be paid a fair wage for their work. Oxfam's research shows that since 1990, income from labour has made up a declining share of GDP across low-, middle- and high-income countries alike.
In South Africa, for instance, a miner in the platinum belt would need to work for 93 years just to earn the average CEO's annual bonus. There are many sectors in which women and men are caught in a working poverty trap, unable to climb out of poverty however hard they work.
Studies led by Fairtrade International have found the legal minimum wage for picking grapes in South Africa or tea in Malawi was just one- to two-thirds of a living wage - not nearly enough for food, clothing, housing and some discretionary income.
Last, we need to confront inequality by backing people to claim their rights and hold their leaders to account. When the wealthiest use their financial power and the influence that comes with it to bend laws and policy choices in their favour, democracy is undermined and inequality entrenched. When they are ill, members of Africa's rich elite and their families can fly to Europe or elsewhere to get treatment.
The same elites decide the policies and budgets that have left the majority of African citizens without their basic right to health care. We need changes to the rules and systems that have led to today's inequality explosion - governments' primary concern must be responding to the needs of their citizens, not being unduly influenced by affluence.
This week, Oxfam is launching a global campaign to tackle inequality. We are honoured to have Kofi Annan, Graça Machel and many others supporting our call to action. For the sake of development, stability, democracy and justice, please join us.
*Winnie Byanyima is the executive director of Oxfam Internationa
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