Income inequality hampers economic growth: OECDDecember 9, 2014 - 15:54 AMT PanARMENIAN.Net - Income inequality has a "statistically significant impact" on economic growth, according to research by the Organization for Economic Cooperation and Development (OECD). The OECD found that redistribution of wealth via taxes and benefits does not hamper economic growth, according to BBC News. "This compelling evidence proves that addressing high and growing inequality is critical to promote strong and sustained growth and needs to be at the centre of the policy debate," said OECD's secretary general, Angel Gurría. "Countries that promote equal opportunity for all from an early age are those that will grow and prosper." In the 34 countries that are members of the OECD, the gap between rich and poor is at the highest level in 30 years, the group said. The richest 10% in those states earn, on average, 9.5 times the poorest. In the 1980s, they earned 7 times as much. The only countries in which the OECD found inequality had fallen were Greece and Turkey. A lack of investment in education was the key factor behind rising inequality, the OECD said. Fewer educational opportunities for disadvantaged individuals had the effect of "lowering social mobility and hampering skills development," the report warned. It also said that those whose parents have low levels of education suffer most when inequality rises, whereas family background matters less to those from a more educated social sphere. The OECD called for policymakers to do more than just implement anti-poverty programs. "Policy also needs to confront the historical legacy of underinvestment by low income groups in formal education," it said. "Strategies to foster skills development must include improved job-related training and education for the low-skilled, over the whole working life." Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Turkey extends military presence in Azerbaijan The Turkish parliament has adopted a bill submitted by Recep Tayyip Erdogan to extend the mandate of Turkish troops. Russia to begin assessing migrant workers' speaking skills Rosobrnadzor is planning to change the Russian language exam for migrant workers and include an assessment of speaking skills Armenian, Saudi Foreign Minister meet in Riyadh The two commended the positive dynamics of the development of political dialogue between Armenia and Saudi Arabia Pashinyan: Azerbaijan’s proximity shouldn’t worry border residents At the same time, he said that he “does not guarantee [the security of villagers] one hundred percent”. |