High and rising inequality has become one the defining challenges of our time, causing concerns among policymakers, especially in G7 countries. As a response, policy makers have adopted different strategies to address the issue. We argue that the unsatisfactory results of this uncoordinated approach reflects a misunderstanding of the multidimensional nature of inequality and of its main drivers. A common and coordinated framework among G7 countries, both individually and as a group, could prove more effective in addressing inequalities.
Policy Implications
- G7 countries need to develop a common understanding on the drivers, trends and related policy implications to tackle inequalities more effectively.
- A common framework on inequalities is developed as a new policy tool to bring together the economic and non-economic dimensions of inequality and establish a link between the different dimensions of inequality and their key drivers.
- The framework on inequalities can inform G7 policy makers about relevant policy options, both at national and international level.
- The recently agreed Bari Policy Agenda among G7 countries represents a first step forward to the design of a common framework on inequalities.
- A greater effort by international organizations is required to improve the quality and comparability of available statistics on the multiple dimensions of inequality, which would facilitate a joint understanding on the drivers, trends and policy implications.
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