GENEVA, Switzerland – In a significant development, the International Labour Organization (ILO) unveiled its latest working paper, Combating Inequalities: What Role for Universal Social Protection? The announcement was made during a high-profile event featuring experts from ILO, the World Health Organization (WHO), and the United Nations Research Institute for Social Development (UNRISD).
Published at the end of 2024, the paper highlights the pressing issue of global inequalities, particularly alarming income disparities. It reveals that households in the lower 50th percentile retain only 25 percent of total income, while the top 90th percentile holds 30 percent. The event’s discussions centered on the potential of universal social protection and its financing to counteract these troubling trends.
The panel, moderated by the Director of the Universal Social Protection Department at the ILO, included key figures such as the Unit Head of Equity and Health at WHO and senior researchers from UNRISD. They delved into the systemic roots of contemporary inequalities linked to historical contexts of colonialism and exploitation, emphasizing their role in exacerbating ongoing crises.
“Inequality hampers economic growth and societal well-being, affecting poverty reduction and productivity,” stated one panelist. “Comprehensive social policies, particularly social protection, are crucial in addressing various forms of inequality, including those related to gender, race, and disability.” The call for reducing inequalities through universal social protection was echoed in discussions from international conferences focused on financing for development.
Another expert underscored that economic inequality correlates with poorer health outcomes, highlighting the necessity for investments in universal social protection and public services to ensure health equity. “Income security is a pivotal factor in improving self-reported health,” they noted.
It was also pointed out that higher social protection spending correlates with reduced income inequality, particularly through contributory pensions, which represent a significant portion of social protection expenditures across various nations.
The seminar provided insights into how the financial sources of social protection impact income equality. Findings indicated that personal income taxes can lower overall inequality but are less effective than social protection benefits in this regard. The role of social insurance contributions in financing social benefits was emphasized, along with the potential of wealth taxes to significantly mitigate income disparities.
Experts stressed that addressing income inequality necessitates a multi-faceted policy approach. “This requires comprehensive public policies, including access to quality education, labour protection, and equitable macroeconomic strategies, to effectively redistribute income and promote fairness in the labour market,” they concluded.
