2.6.2. Inequality and Poverty

The continued accumulation of wealth by the very richest in our societies, while most of humanity subsists on barely anything, is extremely detrimental. Relative poverty has in present times been recognized as growing inequality and the main form of poverty in industrialized countries. Also, inequality affects the rate of economic growth which is very important for poverty reduction.

Even, the United Nations Sustainable Development Goals recognizes the role of inequality in making the fight to end poverty much harder. Goal 10 of SDG talks about “Reduced Inequalities” which can be achieved by equitable and just distribution of benefits of economic growth to the poorest people. As per the World Bank, unless growth benefits the poorest people more between now and 2030, the first Sustainable Development Goal (SDG) – to eliminate extreme poverty – will be missed. Thus, inequality affects poverty both- directly and indirectly.