The enduring idea that the rising tide of economic growth lifts all boats is no longer a universal truth. In the US, even before the Great Recession, the poorest were steadily losing ground. Between 2000 and 2012 the average disposable income of the bottom 10% in the US fell by 14%, underlined the OECD Secretary-General.
To tackle rising inequalities we need to reassess the way in which our economies grow. By placing inclusiveness at the heart of the growth debate we can open up opportunity so that every citizen can realise their potential, to contribute to, and benefit from, more equitable economic growth, said OECD Secretary-General.
Ministers outline their common goal of increasing resilience of our economies by incorporating multidimensionality into policy design to help identify trade-offs, complementarities and unintended consequences of policy choices.
OECD analysis shows that income inequality has been on the rise in most OECD countries since the 1980s, which often means growing exclusion in the labour market, lower intergenerational social mobility, and greater polarisation in educational and health outcomes.
China is currently strengthening its social safety nets and creating a modern welfare state. A minimum income standard is in place for all residents, and nearly everyone benefits from at least some measure of health insurance. But going forward, further reforms are needed to meet the demands of an increasingly urban population, said OECD Secretary-General in Beijing.
There is no simple remedy for fixing the post-crisis global economy. But three key ingredients for sustainable long-term growth are jobs, equality and trust, said OECD Secretary-General in Washington.
Public trust is the cornerstone of effective governance, the main ingredient to promote economic growth and social progress. Like never before, our citizens have doubts about their government’s capacities to make the right decisions. Therefore, we need to take the necessary measures to recover that confidence, said OECD Secretary-General.
Development aid policies have helped developing countries reduce extreme poverty, strengthen institutional frameworks and develop a middle class. But there are still 2.4 billion people living in poverty and inequalities in many countries are still at record levels, and in some cases rising, said OECD Secretary-General.
This OECD Forum and the Ministerial Council Meeting that follows, are precisely about people. This is the raison d’etre of this event: the wellbeing of our people. So be confident, you are at the right place, this Conference is about you, and your families, and your friends, and their dreams, fears and opportunities, said Angel Gurría.
Our economic growth models have not equitably distribute benefits. Inequalities were brewing under the surface prior to 2007 and increased almost everywhere even during periods of sustained economic growth. We need to reverse this trend, said OECD Secretary-General.