Our Perspective

Inclusive growth

Let’s #TalkInequality

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A remote village in Kyrgyzstan was hooked up to satellite phone with UNDP's support. (photo: UNDP Kyrgzstan)

Just how bad is global inequality today? Last year, at the launch of UNDP’s Humanity Divided report, Helen Clark noted that the richest eight per cent of the world’s population earns half of the world’s total income: “Not only do 1.2 billion people continue to live on under US $1.25 dollars a day, but inequalities in income and wealth are often compounded by inequalities in access to power, and disparities in health and education.” How did we arrive at this new polarized age and how divided are we in Europe and Central Asia? How might we sustain our development achievements with prosperity for all?  How have globalization and technological growth affected wage and earning inequalities? UNDP’s Dialogue on Inequalities, taking place on 21-22 January in Istanbul, will discuss the threats posed by inequalities – as well as possible ways of addressing them. As issues of inequality move into the spotlight, I’ve taken the liberty of prepping a reading list. What’s the big deal about this Capital book I keep hearing about? The publication of Thomas Piketty’s Capital in the Twenty-First Century made waves in 2014, significantly advancing the discussion of rising inequality around the world. Matt Yglesias offers a “short guide”... Read more

Africa is transforming itself: How do we turn intentions into reality?

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Better investment in infrastructure could help Africa's transformation. Photo: Benoit Almeras Martino/UNDP DRC

Recently I attended an event from the Global Compact, a UN initiative to encourage businesses to adopt sustainable and socially responsible policies. Entitled "Advancing Partnerships and Responsible Business Leadership", it was held for the first time in Africa, bringing over 300 participants together from businesses, Global Compact networks, UN agencies and governments. Africa's economic transformation with various partners from China, Europe and the US was among the key topics discussed. But, while multinational companies do play a role, it is increasingly clear that African policy makers and business people are setting the continent’s agenda. Participants largely agreed that Africa’s transformation requires investment in better infrastructure, education, skills, jobs, policies and more. The WHAT was better articulated than the HOW. Africa is expected to be one of the world's fastest growing regions, with 4.8 percent growth in 2014 and over 5 percent in 2015, according to the recent African Economic Outlook 2014. However, this transformation goes well beyond economic growth. Development practitioners talk more and more about ‘inclusive growth’, agreeing that businesses should go beyond philanthropy and corporate social responsibility towards making their core activities better suited for societies and the environment.  As UNDP's Resident Coordinator in Ethiopia, Eugene Owusu stated: "Inclusive... Read more

Turning subsistence farmers into market suppliers in Africa

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Despite agriculture being a major source of income in Africa, smallholder farmers face many challenges. Photo: Benoit Almeras-Martino/UNDP DRC

As I sat down for my first dinner in Kinshasa, Democratic Republic of Congo (DRC), after a bit more than one year since my last visit, I suddenly remembered that something is very wrong with food prices here. How can a simple margarita pizza with only cheese, tomato, oil and flour, be USD 20? How can local fish be USD 30? Admittedly I did not eat in the cheapest local restaurant, yet the prices are 4 to 5 times more expensive in comparison to similar dishes in Addis Ababa, where I live. Indeed, food in the DRC is at least twice as expensive as the average world food price for basic commodities. Why is that? A combination of poor farmer productivity, lack of infrastructure and a difficult business environment, mean that the cost of producing goods and taking them to markets is high, and imports are often more readily available or cheaper than local products. In 2008, Bralima, one of DRC’s leading brewers, sourced 16% of its rice from outside the country, due to its inability to source it from the local market. With 80 million ha of arable land and 90 percent of it not cultivated, DRC offers huge untapped... Read more

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