Equity criteria

Equity or economic equality is the concept or idea of fairness

in economics, particularly in regard to taxation or welfare
economics. More specifically, it may refer to equal life
chances regardless of identity, to provide all citizens with a
basic and equal minimum of income, goods, and services or to
increase funds and commitment for redistribution.

Inequality and inequities have significantly increased in recent

decades, possibly driven by the worldwide economic processes
of globalisation, economic liberalisation and integration. This
has led to states lagging behind on headline goals such as
the Millennium Developmen Goals (MDGs) and different levels
of inequity between states have been argued to have played a
role in the impact of the global economic crisis of 20082009
Equity is based on the idea of moral equality
Equity looks at the distribution of capital, goods and access to
services throughout an economy and is often measured using
tools such as the Gini index. Equity may be distinguished
from economic efficiency in overall evaluation of social welfare.
Although 'equity' has broader uses, it may be posed as a
counterpart
to economic
inequality in
yielding
a
"good" distribution of
wealth.
It
has
been
studied
in experimental economics asinequity aversion. Low levels of
equity are associated with life chances based on inherited
wealth, social exclusion and the resulting poor access to basic
services and intergenerational poverty resulting in a negative
effect on growth, financial instability, crime and increasing
political instability. The state often plays a central role in the
necessary redistribution required for equity between all
citizens, but applying this in practise is highly complex and
involves contentious choices. However, considerable consensus
can often be found on three particular issues:
1. Equal life chances: life outcomes should be determined by
individual choices and not conditions beyond an
individual's control.
2. Equal concern for peoples needs: those goods and
services understood as necessities should be distributed
to those otherwise unable to access them.

3. Meritocracy: positions in society and rewards should

reflect differences in effort and ability, based on fair
competition.