A/HRC/39/51 countries.6 This is exemplified in Brazil, Chile, Mexico and Turkey, countries that have managed to reduce inequality, even though the gap between the richest and the poor is still about five times bigger than the gap in the OECD countries. 7 According to the United Nations Development Programme (UNDP), by 2014, more than 75 per cent of the population of developing countries lived in societies with a more unequal income distribution than they had in the 1990s; averages of within-country income inequality showed that income inequality had risen by 9 per cent in developed countries and 11 per cent in developing countries.8 11. Why does income inequality matter? The International Monetary Fund has argued that “widening income inequality is the defining challenge of our time”, with the gap between rich and poor at its highest level for decades in the advanced developing economies. 9 According to OECD, the long-term increase in income inequality not only raises social and political concerns, but tends to reduce GDP growth; people with a lower income are prevented from realizing their human capital potential, which is bad for the entire economy.10 Analysis by UNDP shows that high inequality undermines development by hindering economic progress, weakening democratic life and threatening social cohesion. 11 For example, income inequality appears to be a particularly significant determinant of inequality in health outcomes; 87 per cent of variation in the ratio of under-5 mortality rates between the richest and lowest quintiles could be attributable to variations in income/wealth inequality.12 12. Countless examples can be provided from research and practice, showing that income inequality leads to exacerbating poverty and affects not only enjoyment of economic and social rights, but also infringement of civil and political rights. The World Bank has argued13 that when societies have high levels of inequality, such inequalities are reflected in the unequal capacity of groups to influence the policymaking process, making inequality more persistent, and that “inequality traps are a vicious cycle in which a high concentration of wealth translates into a disproportionate ability of those at the top of the distribution to influence the policy process in their favour and weakens the perception of fairness of those at the bottom of the distribution”. It also argued that, in addition to normative concerns, a more equitable distribution of income is associated with positive outcomes, including stability and economic growth.14 The World Bank further concluded that, in the long run, “inequality and growth are thus tightly linked, and the way in which the benefits from growth translate into socioeconomic achievements across different individuals and groups is determined by how actors interact and make policy decisions about redistribution”.15 This conclusion fits with ensuring effective participation in decision-making processes as outlined in article 8 (2) of the Declaration on the Right to Development, which calls on States to encourage popular participation in all spheres as an important factor in development and the full realization of all human rights. 6 7 8 9 10 11 12 13 14 15 6 Ibid., p. 23. See www.oecd.org/social/inequality.htm. UNDP, Humanity Divided: Confronting Inequality in Developing Countries (2013), pp. 3 and 7. Available at www.undp.org/content/dam/undp/library/Poverty%20Reduction/Inclusive%20 development/Humanity%20Divided/HumanityDivided_Full-Report.pdf. Era Dabla-Norris and others, “Causes and consequences of income inequality: a global perspective”, International Monetary Fund staff discussion note SDN/15/13 (2015), p. 4. OECD, “In it together”, overview. UNDP, Humanity Divided, p. 3. Ibid, table 4.11 and p. 145. World Bank Group, World Development Report 2017: Governance and the Law, pp. 10 and 32. Available from http://documents.worldbank.org/curated/en/774441485783404216/Main-report. Ibid., p. 45. Ibid., p. 167.