Introduction to Development Management 

Outline in Informing Your Readers 

Reduced Inequalities

 
 

Submitted to: 

Dr. Ruperto S. Sanggalang

Submitted by: 

Balane Jeanine 

BSDM 1-1 

Part 1: Define Sustainable Development and Sustainable Development Goals.

Goals: 
A. Sustainable development organizing principle for meeting human development goals while
simultaneously sustaining the ability of natural resources and ecosystem services upon which the
 economy and society depends. Sustainable development can defined as development that meets the
needs of the present without comprising the ability of future generations.             

 
B. Sustainable Development Goals are collection of the 17 global goals set by United Nations General
Assembly in 2015 for the year 2030.The SDG’s are part of Resolution 70/1 of the United Nations
General Assembly in the 2030 agenda.

 
C. The Sustainable Development Goals (SDG’s) also known as the Global Goals, were adopted by all
nation members states in a 2015 universal call to action universal call to action to end poverty, protect
the planet and ensure that all people will enjoy peace and prosperity by 2030.

Part2: Performance of the Philippines Related to Development Goals “Reduced Inequalities “

Between 2011 and 2015, the income and/or consumption of the bottom 40 per cent of the population grew
faster than the national average in 49 of the 83 countries with data (accounting for three quarters of the world’s
population). In most countries whose per capita income/consumption grew during this period, growth was faster
for the bottom 40 per cent of the population. In contrast, in most countries with contractions in per capita
income/consumption, the bottom 40 per cent fared worse than the overall population. This suggests that those in
the bottom 40 per cent are particularly vulnerable to economic changes, and that sustained income growth overall
is necessary to reduce inequality and ensure shared prosperity.

It shows that the middle - upper to upper class have lesser spending or expenditure than the Income. The
discrepancy between the Income and Expenditure of the Upper class also shows at least a difference of 100 units in
the Luzon Region while Visayas and Mindanao show a deficit of at least 200 units. It is also shown that Family
Income class from Under 40,000 to 60,000 to 99,999 show a trend of more Average Spending or Expenses than
Average Income, with instances of Average Income being greater than Expenses in the 60,000 to 99,999 group

Table1: Annual Family and Expenditure by income Class and Region 2012
Data shows that family income and expenditure is consistent among the income classes and the regions of the
Philippines.

Conditional cash transfer (CCT) schemes like the Pantawid Pamilyang Pilipino Program (4Ps) of the
Philippines can help reduce inequality – a necessary component to reaching the world’s goal of ending
extreme poverty by 2030, according to a new report by the Washington-based World Bank. In the
inaugural edition of “Poverty and Shared Prosperity” report, the multilateral lender noted if CCTs are
combined with other safety net interventions, such as transfers of productive assets, skills training, and
access to credit and finance, they have been shown to generate wide-ranging benefits . In Cambodia,
CCTs have raised secondary-school attendance by 26 percentage points, while, in Malawi, the
Philippines, and Zimbabwe, the effects on secondary-school attendance are – albeit more modest – still
significant, between 5 and 10 percentage points,Regarding the unintended effects of CCTs, recent
evaluations of programs in Brazil, Chile, Honduras, Mexico, Nicaragua, and the Philippines fail to
demonstrate reductions in the labor market participation of beneficiaries relative to non-beneficiaries or
increases in the consumption of alcohol or tobacco or in gambling.“In the Philippines, a steep decline
in the consumption of alcohol of 39 percentage points has been document among beneficiary
households relative to control groups,The report noted that successful CCT programs are associated not
only with efficient beneficiary identification and targeting, but also precise evaluations of transfer
effectiveness. This is the case of programs in Brazil, Chile, Mexico, and, more recently, Ethiopia and
the Philippines as part of the success of emerging CCT programs integrated within other safety net
interventions is flexibility. Thus, the ability of safety nets in Ethiopia (the Productive Safety Net
Program) and the Philippines (the Pantawid Pamiliya Pilipino Program) to reach thousands of new
beneficiaries (millions in the case of Ethiopia) after catastrophic events indicates that the coordination
of cash transfers, emergency response, and post-disaster reconstruction is possible and effective in
protecting the poor from natural disasters,” it said.“This was the case of the 4Ps program in the
Philippines, which, in a situation of national calamity, was effective after the conditionality was voided
temporarily, and the CCTs were delivered without compliance verification requirements for the
duration of the emergency,
Economic inequality can be measured in several ways. One approach is to compare the income of a
swathe of affluent people, say the top 10 per cent of the income distribution in a country, with the
national average. Other approaches focus on the gap between the poorest in a society and the median
household. The best-known way of measuring income inequality is the Gini coefficient, named after
the Italian statistician Corrado Gini. It aggregates the gaps between people’s incomes into a single
measure. If everyone in a group has the same income, the Gini coefficient is 0; if all income goes to
one person, it is 1.10 Most of the analysis in this chapter is based on the Gini coefficient, using data
gathered from countries across the Asia-Pacific region since the early 1990s. Most of the analysis is
carried out by using gross (or market) income, which does not reflect government policies to
redistribute income, for instance through direct taxes, social security contributions and cash transfers.
Annex 1.1 provides a brief description of the data set on the Gini coefficient used in the analysis.

Table2: Gini Coefficient

This overall rise in income inequality is mostly due to sharp increases in the region’s
most dynamic and populous countries. Between 1990-1994 and 2010- 2014 the
market income Gini coefficient soared by 9.6 percentage points in China, 8.2
percentage points in Indonesia, 4.6 percentage points in Bangladesh and 4.3
percentage points in India. These four countries are among the five most populous
countries in the region, representing over 70 per cent of the population in 2015.13 The
overall picture, however, is mixed. In 60 per cent of the Asian and Pacific countries,
income inequality declined (Table3), often from very high levels. The sharpest fall in
inequality occurred in the Maldives, followed by Kyrgyzstan, Azerbaijan and
Georgia, reflecting the recovery of those countries from the economic crisis that
followed the breakup of the Soviet Union.14

Table3 Changes in income inequality

In terms of changes in income inequality by subregions, North and Central Asia

experienced a sharp decline with the Gini coefficient dropping on average 11.4
percentage points for six of the nine countries for which data are available (Table 4).
As a result, during 2010-14, this subregion had an average Gini coefficient of 38.3,
similar to the region’s average. In South-East Asia, the picture is mixed, with
Indonesia and Singapore experiencing increases in income inequality and others
including Malaysia and Thailand seeing declines. On average, however, the
population-weighted Gini coefficient rose from 32.6 to 39.1, a similar increase in
magnitude to that seen across the entire region.

Table 4
Recommendation

In many of these countries, the increase in income inequality has been coupled with
a higher concentration of wealth among the already rich, or the top 10 per cent of
the population.Public-sector investment in human capital development, along with
health and labour-market institutions are critical policy tools.For real improvement in
worldwide population well-being we need more equal societies, which are best
achieved by putting democracy at the heart of economic policy and practice.
Alongside international and national efforts to create progressive tax regimes and
deal with tax avoidance and tax havens , the extension of democracy into economic
institutions can have a major impact in reducing inequality. There are number of
simple, feasible measures that nation can take to grow equality alongside economic
democracy.
Income inequality is on the rise—the richest 10 percent have up to 40 percent
of global income whereas the poorest 10 percent earn only between 2 to 7
percent. If we take into account population growth inequality in developing
countries, inequality has increased by 11 percent.

Income inequality has increased in nearly everywhere in recent decades, but at

different speeds. It’s lowest in Europe and highest in the Middle East.

These widening disparities require sound policies to empower lower income

earners, and promote economic inclusion of all regardless of sex, race or
ethnicity.

Income inequality requires global solutions. This involves improving the

regulation and monitoring of financial markets and institutions, encouraging
development assistance and foreign direct investment to regions where the need
is greatest. Facilitating the safe migration and mobility of people is also key to
bridging the widening divide.

The international community has made significant strides towards lifting people out of
poverty.  The most vulnerable nations – the least developed countries, the landlocked
developing countries and the small island developing states – continue to make inroads
into poverty reduction.  However, inequality persists and large disparities remain
regarding access to health and education services and other assets.

There is growing consensus that economic growth is not sufficient to reduce poverty if it
is not inclusive and if it does not involve the three dimensions of sustainable
development – economic, social and environmental. Fortunately, income inequality has
been reduced both between and within countries. At the current time, the per capita
income of 60 out of 94 countries with data has risen more rapidly than the national
average. There has been some progress regarding creating favorable access conditions
for exports from least developing countries as well.
To reduce inequality, policies should be universal in principle, paying attention to the
needs of disadvantaged and marginalized populations. There needs to be an increase in
duty-free treatment and continuation of favoring exports from developing countries, in
addition to increasing the share of developing countries’ vote within the IMF. Finally,
innovations in technology can help reduce the cost of transferring money for migrant
workers.

Phillipines. -