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Concern at IMF meeting over imbalanced world economy

Income inequality in industrialised countries is now at its highest level in 50 years

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Concern at IMF meeting over imbalanced world economy

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Concern about an increasingly imbalanced world economy is being raised at the IMF Spring Meetings in Washington.

Point of view

There is a shared conviction that these are economically inconvenient and politically unsustainable issues

Income inequality in industrialised countries is now at its highest level in 50 years, according to the OECD.

The average pay of the top ten percent of earners is now almost ten times that of the poorest 10 percent across the OECD.

Angel Gurria, the OECD’s Secretary General, told euronews:
“Yes, there is a sense of urgency, yes there is a sense of the need to address the issues. And more and more there is a shared conviction that these are economically inconvenient and politically unsustainable issues, and therefore they have to be addressed.”

Experts say the financial crisis has only added urgency to the need to address the issue by promoting better education and training possibilities.

Axel Kicillof, the Argentinian Finance Minister, told euronews:
“When you combat inequality and you put money in the sectors that are with less income, you have as results not only more welfare for them, but also macro-economically speaking more demand.”

Euronews’ Stefan Grobe reported:
“As John F. Kennedy used to say: A rising economic tide lifts all boats. But in today’s reality, only yachts go up whereas too many rafts remain stuck in the mud.”