UK-based charity ‘Oxfam International’s report named ‘Commitment to Reducing Inequality (CRI) Index was released. The analysis was done by Oxfam and non-profit research group Development Finance International (DFI).India ranked 147th among 157 countries analysed and was labeled a “a very worrying situation” with respect to the rising inequality in the country.
Government spending on health, education and social protection is low which is more subsidized to the private sector.Despite having a good tax structure, the practice of progressive taxation is not transparent and the collection often is avoided in cases of incomes of the richest.Also the labour laws and position of women at work place is quite low which brings the bar down for India.
If India commits to reduce the inequality by one-third, 170 million people would come out of poverty.Countries such as India and Nigeria, US (among the rich countries) are “doing very badly”.Whereas, countries such as South Korea, Namibia and Uruguay are taking strong steps to reduce inequality.Among other countries, South Korea came in 56th place and improved a lot by raising tax on the richest earners, boosting spending for the poor and dramatically raising the minimum wage.
Similarly, at 131st place Ethiopia has spent the 6th highest level of education spending in the world.Chile at at 35th, increased its rate of corporation tax and Indonesia at 90th, has increased its minimum wage and spending on health.Out of 157 countries measured, Denmark topped the list based on its high and progressive taxation, high social spending and good protection of workers.Ranking at 11th, Japan became the topper among the Asian countries.Top ten include Germany (2nd), Finland (3rd), Austria (4th), Norway (5th), Belgium (6th), Sweden (7th), France (8th), Iceland (9th) and Luxembourg (10th).Among the BRICS nations, China was ranked 81st on the list, Brazil 39th and Russia 50th.It finally recommends that all countries should develop national inequality action plans to achieve the UN’s Sustainable Development Goals (SDGs) on reducing inequality.