SDG progress – Zooming in on Inequality
The following blog was written by Charlotte Österman (Social Value UK & Pax Tecum Global Consultancy) and Rebecca Harvey (Social Value International).
Despite progress made over the last 20 years to reduce the numbers of people living in extreme poverty, inequality has been on the rise across the globe for several decades now. In January 2020 (before the COVID-19 pandemic took hold) the UN warned that rising inequality was affecting more than two thirds of the globe as economic gaps have continued to grow at a disproportionate rate to the progress made to reduce extreme poverty. Now, with the COVID-19 pandemic being shown to have pushed 119-124 million people back into poverty and chronic hunger it is clear, that the persistent challenge of inequality is not going anywhere. It is a complex situation, but one that we’d like to dedicate this first out of three blogs to and share insights from the progress that the SDGs highlight.
As we covered in another recently published SDG progress blog, the SDG’s agenda is to create peace and prosperity for all, stop climate change and end poverty and there’s a clear overlap to social value as we know it and to our mission to reduce inequality, degree environmental degradation and increase our aggregated wellbeing. That’s why we’ve chosen to use these areas of our mission as a basis for the blogs of this mini-series. We hope these will provide a few snapshot insights for you to know where we are at and what’s happening in Social Value International network relating to this agenda.
When discussing inequality, what do we mean?
Inequality refers to the phenomenon of unequal and/or unjust distribution of resources and opportunities among members of a given society. The term inequality may mean different things to different people and in different contexts and as such there is a wide variety of inequalities. However, economic inequality such as income and wealth distribution tends to be the one most discussed when numbers are quoted – e.g. the commonly stated statistic of the top 1% of households globally own 43% of all personal wealth, while the bottom 50% own only 1%. But it should not be forgotten that inequality goes further than the economic element both in cause and effect, including any difference in between people and groups, which be in gender, race, access to natural resources, education, etc. Or as the graph below shows, Covid vaccines:
Graph obtained from: https://inequality.org/facts/global-inequality/
With inequality being so widespread, and found in so many varying contexts, it is clear that tackling inequality requires multifaceted approaches and global collaboration. And that is where the SDGs come in.
How is inequality covered in the SDGs?
Reducing inequalities and ensuring no one is left behind are integral to achieving the Sustainable Development Goals. It is most specifically dedicated attention in Goal 10: Reduced Inequalities and Goal 5: Gender Equality but as per the nature of inequality, and the holistic interconnected nature of the SDG agenda, these goals cannot be seen as stand-alone objectives.
None of the 17 SDGs can be fully comprehend through focusing on only one Goal as they recognize that ending poverty and other deprivations must go hand-in-hand with strategies that improve health and education, reduce inequality, and spur economic growth – all while tackling climate change and working to preserve our oceans and forests. Therefore, despite reducing inequality being specifically addresses as a goal of the SGDs, inequality reduction is vital for, and in turn is dependent upon, the achievement of all 17 SDGs.
What is the SDG progress on inequality?
We have noted already, that despite gains in reduction of extreme poverty, inequality is on the rise and therefore remains a persistent cause for concern of the SDG agenda. Before the COVID-19 pandemic there had been modest gains in reducing income inequality in some countries and reducing transaction cost for remittances, but those positives already before 2020 left many areas of inequality with poor progress and rates of extreme poverty remained stubbornly high in low-income countries and those affected by conflict and political upheaval.
Now, over 18 months into the COVID-19 crisis we can see that the pandemic has deepened the already existing inequalities hitting the poorest and most vulnerable, who were already victims of economic inequalities and fragile social safety nets, hardest. The pandemic has amplified social, political and economic inequalities to such a degree that a recent report of the Secretary-General projects that it will push back the poorest countries a full 10 years on their SDG progress.
Its grim global picture being painted in that report and when discussing progress on inequality (...or perhaps lack of) it also highlights data such as:
Almost one out of five people have experienced discrimination that is unlawful under the international Human Rights, with women at higher risk of experiencing discrimination.
The refugee crisis is worse than it has ever been, with 24 million people fleeing their countries and becoming refugees due to war, conflict, persecution, human rights violations and events seriously disturbing public order.
In 2019, total resource flows for development to developing countries from DAC donors, multilateral agencies and other key providers were $400 billion, of which $164 billion were ODA
These numbers sound large at first sight, but just a comment of ours to put those numbers into perspective: The US alone spends $746 billion a year on military, or alternatively we can compare it the cost of running a country’s health care system (here the UK’s NHS) that costs approx. $250 billion (£ 181.4 billion) a year. On a side point, we would also find the impact analysis and data assessing what difference these financial flows actually made to stakeholders’ lives and what social value was generated a lot more meaningful than only the sum of flows stated.
From the SDG progress report, it is clear that inequality is a global concern, and unless action is taken, it will continue to impact millions of people for many years to come. If we are serious about achieving the SDGs by 2030, tackling inequality in all its forms must remain a priority, and is one that will require large scale investment and global participation in order for it to be achieved.
What is Social Value International doing to tackle inequality?
At Social Value International our mission is to change the way society accounts for value because we believe that using a broader definition of value will lead to reduced environmental degradation, improved wellbeing and equality for all. All too often key decisions about resources and policies are made using a limited economic concept of value, which fails to consider important effects on people and the environment. As the gap between rich and poor increases and the effects of climate change become more apparent, our work has never been more urgent.
We know that in order to achieve the SDGs, the impact that we all create needs to be measured and managed effectively so that the resources invested into tackling inequality can make the biggest difference possible. We know that this needs to happen across the spectrum, by governments, investors and businesses and needs to be done in a way that is consistent and measurable. That is why SVI is proud to support the SDG Impact Standards and why, earlier this year, we were so pleased to announce our strategic partnership with SDG Impact in the development of the assurance model and in training materials for UNDP country offices.
We know that achievement of the SDGs is vital for the sustainability of this planet, and as we stay true to our mission, we know that now more than ever, tackling inequality is a key area where more work is needed to be done, which is why it is one of the themes we hope to discuss in the upcoming Social Value Matters Conference.
This year’s Social Value Matters Conference will be focused around the theme “leading our transition to a sustainable world” and will explore how changing the way we account for value can transform the world around us and help us achieve the SDGs by 2030. Like the SDGs themselves, the themes of climate change, inequality and wellbeing will be discussed across all of the keynotes, panel discussions and workshops as we explore innovative ways to tackle these global challenges – but we know just how important tackling inequality is and so to hear more about this, and how changing the way we account for value can make a difference to inequality, join us at:
Transforming decision making to achieve sustainable development on 20th October
Linking climate change to social inequality on 21st October
Expanding the profession - inspiring youth and diversity in social value on 21st October
Power & Making Decisions as a Community on 21st October
To find out more about Social Value Matters 2021, please head to the dedicated conference website. There are also free tickets available for scholars to apply for before 27 September 2021.