Rising Inequality a deep concern

Some recent stats revealed :

• Oxfam International report titled "An economy for 1%" - the richest 1 % owned as much wealth as the remaining 99 % combined did, with the gap in wealth widening even faster than anticipated.
• In India Richest 1% owns 58% wealth(much greater than global average of 50%)
• WEF's Global Risk Report 2017 also highlights danger of inequality as rising populism. 
• Similarly, Thomas Picketty's work "Capital in the 21st century" highlights steep inequality in India.

Causes of such rising inequality : 

• Globalization - has benefited some(those ready to deal global competition) and weakened some(MSME etc)
• Changing supply & demand for skills
• More unequal access to skills
• Gender pay gap : A/t ILO's Global Wage Report India has huge gender pay gap - exceeding 30% for same job.
• Increasing dependency on regressive indirect tax which hurts poor more. (~50%)
• Poor reach and overall efficiency of anti-poverty schemes.
• Rate of wealth creation(r) >>> rate of growth(g). Resulting in 
• wealth inequality >>> income inequality

Consequences of such unchecked inequality : 

• social - rising protest across the globe - Occupy wall street, Arab spring
• political - rise of authoritarian leaders with divisive agenda fueled by sectarianism, xenophobia
• threatens stability of democracies
• economic - not suitable for free-market economy because it depends on purchasing power of masses
• Naxalite issues has roots in economic deprivation & inequalities in access to resources.

Steps required : 

• Financial transparency in government resource distribution
• Global coordination on wealth taxation
• Progressive wealth tax rates
• Increase direct tax collection capabilities
• Provide life long re-skilling opportunity
• "Technology is greatest leveler"(Sam Pitroda). e-Kranti, BharatNet etc should be fast implemented.  
• Women empowerment - Rashtriya Mahila Kosh , Maternity Benefit Act etc. 
• Rethink trickle down model of growth 
• equity in development
• investment in human capital and public goods
• A conceptual framework has been given by A.Sen - human capability approach
• Other (undesired) ways to redistribute wealth :
• inflation - shifts money value from creditors to debtors
• war
• expropriation

Time has come to move development discourse beyond current discourse of outcomes and opportunity.