Global wealth disparity worsened after the financial crisis of 2008-2009. "Too big to fail" was the reason for governments to bail out and not punish enough the big money businesses. Political leaders in the developed countries, even with the best intention of helping the poor and the middle classes of their countries, have to work with the rich and powerful to grow their economies and let the existing social policies to trickle down the benefits to the poor. Not much success within the rich countries. With rapidly developing countries like China and India, the rapidly rising water does lift all boats, including the poor. However, the rich get even more. But at least, many people are being lifted out of poverty.
To narrow the global wealth disparity, there is no question that the most effective measure would be to lift the poor in the poor countries out of poverty, in a sustained way. This is seldom seen or heard in the popular topics or discussions in the richer countries. The "Occupy" movements five years ago which protested against wealth disparity have fizzled out. What happened?
Have we become more insensitive to the needs of the poor? Out of sight, out of mind? Or are we distracted by the noises of dissension, separation, zero-sum (If you win, then I lose), you and we are different, to succeed one must be selfish, etc.?
Yes, these are all causes, but I think a fundamental cause is the increasing concentration of power among the top 1%. Most of these people firmly believe in their value system. There are exceptions, of course, as many of these people are philanthropists, in their second personality, However, their primary personality is still driven to succeed in their businesses.
Along with the concentration of power with the top 1%, they also have mastery over new and developing technologies, and new ways of building more business.They have completely asymmetrical power compared to ordinary people and the poor, to increase their wealth at exponential growth. This concentration of power will drive the wealth gap even bigger.
A question I have to myself is this. Can any international institution or international agreement bring about a narrowing of the wealth gap in a sustainable way, within the current economic and political world order? Or is a complete collapse of the current world order necessary in order to have a rebirth of a new world with reasonable global wealth distribution?
Before I become entirely pessimistic, I would try to envision a sustainable international agreement which can reverse the wealth gap without a complete collapse first.
1) Knowledge needs to flow to the poor (long term by education/learning; short term by Internet)
2) Investment capital needs to flow to the poor.
3) Transportation infrastructure needs to connect the poor.
4) An international commitment from the richer countries to distribute part of its wealth to the poor countries on a sustained manner.
Need to think more ..... for sure!
2 comments:
A lot more need to be done to help the poor. Maybe with a system rather than capitalism.
Capitalism has globalized and endorsed by governments to manipulate markets to amass more wealth to defend the power of the 1%. Bread crumbs falling off the table (charities) are measures to "close the gap". This is good enough for governments to be re-elected to satisfy the rich and powerful. The system perpetuates, with or without Francis of Assisi.
Poverty, like racism, is generated by social organization, even under communism.
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