Pakistan’s Progress on SDG Goal 10: Reducing Inequality

Research Questions

1. What is the significance of SDG Goal 10?
2. What is the current situation of Pakistan with regards to SDG goal 10?
3. What can Pakistan do to implement SDG goal 10 properly?

Introduction

Some view inequality as a byproduct of capitalism, while others argue that it is a mechanism of natural difference and should not be interfered with. As not everyone enjoys the same quantity of scarce resources available to mankind, inequality, nevertheless, is rampant around the world in many forms. Be it gender, income, social, cultural, or any other form, the world is increasingly witnessing the harmful effects of inequality (Social Europe, 2021). Sustainable Developmental Goals 10, reducing inequality, specifically deals with the issue on a global level. The COVID19 crisis is impacting the poorest and most vulnerable countries around the world, and with vaccines in limited supply, it remains to be seen how the world caters to the growing inequality in the global healthcare arena. Pakistan remains committed to reducing inequality in its boundaries by implementing laws and policies related to education, healthcare, and socioeconomic welfare. Therefore, it is important to understand the significance of this goal and the subsequent efforts of Pakistan in achieving it.

Global Outlook on SDG Goal 10: Reducing Inequality

On the global stage, inequality continues to persist in all its forms even after a slight reduction in some dimensions such as income inequality and preferential trade status for  developing countries. From 2012 to 2017, 73 out of 90 countries saw a reduction in their income gap, while the total number of products exported from developing countries increased by 1 to 2% (UN, 2020). However, in an overall manner, income inequality is rising as the richest 10% of the world enjoys access to 40% of the global income. Taking into account population growth, income inequality has increased by a staggering 11% around the world, with the Middle East being the highest and Europe being the lowest in inequality. Economic inequality is mainly the result of unequal ownership of capital, and the widening disparity requires sound policy to encourage and promote economic inclusion for all (UNDP Pakistan, 2021).

The sustainable development goals (SDGs) set out targets for each individual goal that can be used to track progress towards achieving the specific goal. Goal 10, reducing inequalities, aims to increase the income growth of the bottom 40% of the population at a rate that is higher than the national average. This has to be done in a sustainable manner to ensure the social, economic, and political inclusion of all groups in a society. Also, by ensuring equal opportunity and reduced inequality of outcome, discriminatory laws, policies, and practices can be eliminated. The goal also aims to regulate and monitor global markets and institutions that adopt policies in favour of equality and ensures enhanced representation of developing countries in decision-making in international economic and financial institutions. Other targets include special treatment for developing countries and development assistance for least developed countries. Therefore, if implemented in letter and spirit, the targets have a huge potential of reducing inequality around the globe (SDG Pakistan, 2021).

Pakistan’s Position and Progress on SDG Goal 10

A widening wealth, income, and regional disparity among people are fuelling extremisms and social instability in Pakistan. Reducing economic inequality is one of the major challenges in Pakistan. As Pakistan is a largely agriculture-based country, the most prominent form of inequality is the distribution of farmlands among rural households. The top one per cent of farmers own more than 20% of the farm area. Also, it is estimated that 40% of Pakistan’s population is poor, and the main factor behind the rising gap between the rich and poor is the elite capture of politics, industry, and the economy. Pakistan has also incurred heavy losses in its fight against terrorism and lost over 70,000 lives. The economic cost is estimated at over 250 billion US dollars. Lastly, in stark comparison, it can be seen that during autocratic governments, growth has remained high but at the expense of inclusivity. While during democratic tenures, growth has remained stagnant but has a more inclusive character to it (Qadir, 2018).

According to research, increasing GDP growth by 1% point reduces poverty by 3.6%, whereas a reduction of 1% in inequality decreases poverty by 8.5%. Pakistan is home to a tiny upper class and a mass of poor class who cannot even afford to fill their stomachs three times a day. According to data gathered in 2016, the national growth rate of average household income stands at 9.6%, while the bottom 40% are at 7.4%. To achieve the SDG targets, the national average income must increase by 1.5 times, while income for the bottom 40% should increase by 2.5 times. Also, the proportion of people living below 50% of median income stands around 16.6%, which should be decreased by 40% of the present value (Planning Commission, 2018). Therefore, Pakistan has a long way to go before it can achieve its stipulated targets under SDG goal 10, reducing inequality.

Pakistan has taken multiple steps that are focused on achieving SDG 10 targets. Considering the post-2015 era, there have been multiple legislations passed, such as the Khyber Pakhtunkhwa Lissaail-e-Wal Mahroom Foundation (Amendment) Act 2016, the Balochistan persons with disabilities act 2017, and the protection against harassment of women at the workplace act. On the policy side, the comprehensive new national and provincial mineral policy and national policy framework for differently-abled persons have been formed and implemented. Although the steps are commendable, very little has translated into on-ground progress. The government should launch uplift schemes for backward and rural areas to create more opportunities for the deprived segment of society. There should also be greater use of fiscal, wage, and social protection policies to achieve equality. Lastly, education remains the single most effective source of empowering younger generations to make them able to enter the job market. Therefore, these steps must be taken on a priority basis to help alleviate inequality in its many forms in Pakistan to attain a more prosperous country (Government of Pakistan, 2019).

Conclusion

The issue of inequality has generated much debate around the world. With many differing opinions on its correct usage and definition, the term signifies the mismatch between the extremely rich and the very poor living in a single society. As the world strives to come out from the pandemic, there is a danger that global and local inequalities will increase due to many social and economic pressures. Therefore, it is vital that the education and development of rural or backward areas are given importance. Otherwise, it may be that a whole generation is pushed into further poverty and misfortune.

Key Takeaways

1. Pakistan remains committed to reducing inequality by implementing laws and policies related to education, healthcare, and socioeconomic welfare.

2. On the global stage, inequality continues to persist in all its forms even after a slight reduction in some areas such as income inequality and preferential trade status for developing countries. From 2012 to 2017, 73 out of 90 countries saw a reduction in their income gap, while the total number of products exported from developing countries increased by 1 to 2%.

3. Economic inequality is mainly the result of unequal ownership of capital, and the widening disparity requires sound policy to encourage and promote economic inclusion for all.

4. A widening wealth, income, and regional disparity among people is fuelling extremisms and social instability in Pakistan.

5. As Pakistan is a largely agriculture-based country, the most prominent form of inequality is the distribution of farmlands among rural household.

6. It is estimated that 40% of Pakistan’s population is poor, and the main factor behind the rising gap between the rich and poor is elite capture of politics, industry, and economy.

Bibliography

Government of Pakistan . (2019). Voluntary National Review.

Planning Commission. (2018). Summary for the NEC Council: SDGs National Framework.

Qadir, A. (2018). Growth and inequality in Pakistan. Retrieved from https://www.fes-connect.org/people/growth-and-inequality-in-pakistan/#:~:text=The%20most%20prominent%20manifestation%20of,farm%20land%20among%20rural%20households.&text=The%20top%2020%20per%20cent,only%200.3%20hectare%20on%20average.

SDG Pakistan. (2021). The Targets. Retrieved from https://www.sdgpakistan.pk/web/goals/goal10

Social Europe. (2021). What is inequality? Retrieved from https://www.socialeurope.eu/focus/what-is-inequality

UN (2020). Reduce inequality within and among countries. Retrieved from https://sdgs.un.org/goals/goal10

UNDP Pakistan. (2021). Goal 10: Reduced inequalities. Retrieved from https://www.pk.undp.org/content/pakistan/en/home/sustainable-development-goals/goal-10-reduced-inequalities.html