Rising inequality a cause for concern

It is flustering news that only one percent of Bangladesh's population is in possession of 16.3 percent of the total national income. This fact was revealed in the report titled "World Inequality Report 2022," released by the World Inequality Lab in Paris. The latest update of the index, published on December 7, showed that the figures did not change much from the previous year, but clearly indicated how income inequality had been rising since the 1980s. In 1981, the share of pre-tax national income of the top one percent of people was 11.8 percent, while the bottom 50 percent held 20 percent of the wealth.

According to a UN study, "one of the consequences of inequality within societies is slower economic growth. In unequal societies, with wide disparities in areas such as health care and education, people are more likely to remain trapped in poverty, across several generations." When we look at the Bangladesh perspective, we see that the root causes of inequality have not been removed. For example, Bangladesh did not create the desired number of employment opportunities for its large number of unemployed youths; also, it did not spend enough on the health and education sectors and on social safety net programmes.

As a result, the number of poor is increasing day by day and also the number of rich is increasing proportionally. It has been noted by experts that even during the pandemic, people have gone from rich to richer. Economists and social researchers tend to agree that inequality has been increasing for years as the country's GDP is not increasing inclusively. They suggest addressing the incidence of corruption and weak taxation structure, which are contributing to the rising spectre of inequality. A great deal has been deliberated on the issue of wide-ranging corruption in the country and its impact on the economy. But, despite some small steps taken towards addressing the issue, the enormity of the burden remains hanging around the neck of the nation like the proverbial "dead albatross."

It is a common feeling that merely wishing the inequality index to go away will not happen for anyone. Pragmatic planning to address issues like global warming, migration, adoption of technology, and providing financial support to the sectors involved in income-generating activities must happen at the right time.