{"id":2950,"date":"2019-06-06T08:51:13","date_gmt":"2019-06-06T08:51:13","guid":{"rendered":"https:\/\/africasustainabilitymatters.com\/?p=2950"},"modified":"2026-01-11T05:30:20","modified_gmt":"2026-01-11T05:30:20","slug":"islands-of-wealth-and-income-ultimately-affect-sustainability","status":"publish","type":"post","link":"https:\/\/rayscohosting.best\/ASM\/2019\/06\/06\/islands-of-wealth-and-income-ultimately-affect-sustainability\/","title":{"rendered":"Islands of Wealth and Income Ultimately Affect Sustainability"},"content":{"rendered":"\n

Ten of the most unequal<\/a>\ncountries in the world are from Africa. This is despite the fact that a\nmajority of the countries are fast growing in terms of economic growth and\ndevelopment in general. South Africa leads as the most unequal country followed\nclosely by Namibia and Botswana. Economic inequality is as a result of\ninequality in wealth and income distribution.<\/p>\n\n\n\n

Income inequality looks at how big the gap is in what\npeople get paid in an economy. In 2017, a troubled Kenya\nairways<\/a> saw the former chief executive take home 104.8\nmillion when he left the airline. In a country categorized by few job\nopportunities in the formal sector that pay more and more job opportunities in\nthe informal sector that pay less inequality is on the rise. This also affects\nhow wealth is distributed among the population of a country.<\/p>\n\n\n\n

Wealth inequality focuses on how a small group of\npeople in the world own most \u2018stuff\u2019 as compared to the rest. This mostly\nfocuses on assets. According to a study done by Oxfam<\/a>,\nless than 0.01% Kenyans which loosely translates to around eight thousand three\nhundred of the total population own more wealth than 99.9% of the population.\nMoreover, the gap between the rich and the poor continues to widen each and\nevery day drawing us away from achieving sustainable development goal no. 10<\/p>\n\n\n\n

What\nleads to economic inequality? <\/em><\/strong><\/p>\n\n\n\n

Tax systems in some African countries do not favor the\npoor leading to inequality. The poor in a society pay more taxes as compared to\nthe rich given the percentage of their total income.  Due to generous tax incentives a lot of\nrevenue is foregone. This is compensated by issuing a higher tax on\nconsumption- the value added tax in a majority of African countries sees the\ntax burden affecting the economy. Tax<\/a>\nincentives cause Kenya, Uganda, Rwanda and Tanzania an estimated 2.8 billion\ndollars annually.  This money could be\nused to boost the health sectors and other pressing issues that pose a threat\non sustainability. International loopholes and corruption make it easy for the\n\u2018top society people\u2019 engage in tax evasion strategies and avoidance, pushing\nthe burden to the poor in the society.<\/p>\n\n\n\n

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the ultimate effect of inequality. Image source: caglecartoons.com <\/figcaption><\/figure>\n\n\n\n

Investigations were conducted by Global Witness<\/a> which alleged that the government of the democratic republic of Congo had sold off major mining concessions in secret. This was said to be below the market value equivalent to the education and health budgets combines. In the process, they lost an estimated one billion dollars. A number of offshore companies were said to have received the money. Siphoning of public resources leads to economic inequality as only a few people benefit from the resources.<\/p>\n\n\n\n

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Congo secret sales. Image source: globalwitness.org <\/figcaption><\/figure>\n\n\n\n

Unfair distribution of public expenditure and investment leads to economic inequality as well. In Kenya for instance \u2018politics of identity\u2019<\/a> led to violence after the 2007 general elections. Some ethnic groups are superior as compared to the rest in terms of assets and investments. Inequality increases when some groups are given better access to services that hinder growth such as health and education. This has been the case for some countries such as Uganda, Kenya and D.R. Congo. <\/p>\n\n\n\n

In some countries the networks of patronage have\nbenefited and sabotaged specific groups of a given population. Factors such as\nethnicity and nepotism have increased inequality. Some communities lack a fair\naccess to land which is key to Africa\u2019s main source of income-agriculture.<\/p>\n\n\n\n

Land concentration in the hands of the rich and\npowerful in a trend in most African countries. Grabbing of land by the rich and\nforeign investors has affected the poor reducing their chances of experiences\nany chances of equality. Every now and then developing countries loose land\nequivalent to a football pitch to private investors. This land would otherwise\nbe used to boost food security through agriculture. Most citizens are left in\nthe dark without knowledge of the opportunities these lands create.<\/p>\n\n\n\n

The possibility to survive and strive in today\u2019s\nAfrica is determined by one\u2019s access to capital, technology and knowledge. It explains\nthe vulnerability in arid and semi-arid areas of some African countries. These\nthree pillars determine the ability of one to venture in entrepreneurship\naccess to better paying jobs in minute formal sector. However the resources\nneeded for this are unavailable in some parts of different countries. Other\nresources have been privatized.<\/p>\n\n\n\n

Privatization of some resources has led to inequality\nespecially by those who cannot afford the resources. They end up spending most\ntheir low income in accessing these resources. In South Africa for example, water\nservices<\/a> have been privatized. This has seen a good number\nstruggle to secure good health as lack unequal access of water has its\nconsequences. This is mostly attributed to exclusion of the public from public\ndecision making. <\/p>\n\n\n\n

Solution\nto economic inequality<\/em><\/strong><\/p>\n\n\n\n

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hope to eradicate inequality. Image source: kenyayote.com <\/figcaption><\/figure>\n\n\n\n

People with differences in their income level should not pay the same amount of tax otherwise economic growth will be noted but the income inequality will reduce the growth-poverty elasticity of African countries. Policy and law makers need to regulate this in that tax rates are dependent on the income of an individual. This will help reduce economic inequality. <\/p>\n\n\n\n

Transparency and integrity should also be employed in\ndistribution of resources as well as public expenditure. This will reduce the\namount of public resources siphoned by those in a \u2018higher rank\u2019 in the society.  Policies should be established to combat\nunequal access to natural resources and land as they are key to achieving food\nsecurity. Quality education and services such as health should also be embraced\nso to ensure equal opportunities for all in terms of personal growth and\ndevelopment.<\/p>\n\n\n\n

Understanding the effects of inequality and its causes\nwill help reduce it. It takes time to reduce income inequality amid growth of\ncountries as compared to poverty reduction.   <\/p>\n","protected":false},"excerpt":{"rendered":"

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