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Income inequality and growth in transition economies:

The global response to reducing inequality in the form of SDG10, and in fact the whole post-2015 agenda, is more comprehensive this time round. The reference to both “within” and “among” countries highlights just how much this is an issue for all countries not only developing ones.

Crucially, there’s also a much greater focus on the structural factors that cause poverty and inequality (for example, discrimination; lack of representation; lack of appropriate fiscal, wage and social policies), not just the symptoms (such as low income, education or health).

So the targets set out in SDG10 rightly have a broad scope, reflecting the many underlying economic, social and institutional factors that need to be tackled to promote more inclusive progress.

  • Progressively achieve and sustain income growth of the bottom 40 percent of the population at a rate higher than the national average.
  • Empower and promote the social, economic and political inclusion of all.
  • Ensure equal opportunity and reduce inequalities of outcome.
  • Adopt policies, especially fiscal, wage and social protection policies that progressively achieve greater equality.
  • Improve regulation and monitoring of global financial markets and institutions.
  • Ensure enhanced representation and voice of developing countries in decision-making in global international economic and financial institutions.
  • Facilitate orderly, safe, regular and responsible migration and mobility of people.
  • Implement the principle of special and differential treatment for developing countries, in particular least developed countries, in accordance with World Trade Organization agreements.
  • Encourage Official Development Assistance and financial flows, including foreign direct investment, to States where the need is greatest.
  • Reduce to less than 3 percent the transaction costs of migrant remittances and eliminate remittance corridors with costs higher than 5 percent.