Centre Number VN236

Candidate Name Tran Do Viet Phuong

Candidate Number

Syllabus and Component Number 9239_03

Transcript:
We are living in a world that has various issues which restrain people from a blissfully happy
life. One of the most alarming concerns in society is the gap between the rich and the poor -
or we can call it economic inequality. I'm Viet Phuong from 11A2 at NS school. Today I
want to address the problem of economic inequality and give it a solution.

According to The Equality Trust, economic inequalities are defined as people’s different
positions within income, pay, and wealth.

Looking at the situation of the world: The world’s 1% richest have more than twice as much
wealth as 6.9 billion people. Almost half of humanity is living on less than $5.50 a day, and it
is anticipated that 258 million children will not be allowed to go to school.

That being said, I believe that governments should consider some actions to tackle this issue.
While Duc Minh suggests that they can redistribute income, Le Phong suggests to provide
technical aids to promote companies’ growth. Although my teammates' proposed solutions
are very practical and executable in some aspects, I still believe that to curb the wealth gap,
we should also mitigate lacking knowledge and skills in current and future employees.

Rising income inequality is breeding more shortages in education, resulting in lack of

educational attainment in unwealthy children. Looking at the datas above, high-wealth youth
have a 70 percent chance of completing at least two years of college, while those from low-
wealth families have only 30 percent. Even in rich countries, only a quarter of children from
the poorest families complete secondary education, compared to 90% of children from the
richest families.

The problem of income inequality in Vietnam is also critical. A study from Báo Tuổi Trẻ in
2014 shows that the income gap between the richest and the poorest 20% of the population
was 9.7 times, which grew to 10 times in 2018.

According to the Ministry of Education:

The number of children who were not going to school was more than 1 million.
Besides, nearly 60% of young children from Vietnam drop out of school, mainly in rural
areas.

Therefore, I believe that expanding access to education is essential. According to Oxfam -

one of the leading international NGOs in Vietnam: “When good education can only be
accessed by families with money, it undermines social mobility; it ensures that if you are
born poor, you and your children will die poor, no matter how hard you work”.

So, based on the political and ethical aspects, how can education contribute to the reduction
of the wealth gap?
Politically, governments can invest more on education, by providing grants to colleges and
universities to give more scholarships; or even cancel tuition entirely.

Norway has the lowest income inequality in the world, with a Gini coefficient of 0.25. This
result is helped by a mix of policies that support education and innovation. Public universities
in Norway do not charge local and international students tuition fees, and they only have to
pay a semester fee of 30 - 60 EUR for the student union.

Based on policies on education and tax distribution, Norway tops the 2017 index of inclusive
economies, a study of which countries are best at providing sustainable growth over decades,
creates jobs for everyone, and lowers poverty.

Statistics from the World Bank shows that in Vietnam, the government's annual expenditure
on education is approximately 20%, equivalent to 5% of GDP. This is a very high proportion
compared to many countries in the world, including nations with a much higher level of
economic development than Vietnam such as Singapore, Japan and Europe. Even though the
country hasn’t seen much positive signs in narrowing the wealth gap, there has been
improvements in monthly income in Vietnamese, as in 2020 the locals' revenue has increased
by 8% compared to 2016.

So, what are the benefits of offering education in reducing income inequality?

First of all, improving the education system can bring more employment opportunities to
everyone, because the lower the level of education the greater the number of people applying
for the same low-paid positions. However, with the right qualifications, poor people will
increase their chances of landing a fulfilling job. Data from the BLS shows that earnings
increase and unemployment decreases as educational attainment rises. Grouping workers by
educational level, the chart shows that those with more education have higher earnings and
lower rates of unemployment than those with less education.
Besides, the solution can secure a higher income for citizens. A study from UNESCO
estimates that each year of schooling raises earnings by around 10% for men and up to 20%
for women. Also, universal free education enhances people’s earning power, and can bring
them out of poverty. In Tanzania, having a secondary education reduces the chances of being
poor as a working adult by almost 60%.

Ethically, everyone has the right to have access to education equally. The Universal
Declaration of Human Rights affirms that education is one of the most powerful tools in
lifting socially excluded children and adults out of poverty. For this human right to work,
there must be equality of opportunity, universal access, and enforceable and monitored
quality standards. UNESCO data shows that if all adults completed secondary education,
globally the number of poor people could be reduced by more than half.

Continuing with the benefits of education, this can promote equality to everyone. Almost
two-thirds of the world’s illiterate adults are women. This lack of education often deprives
them from having a quality job. In fact, a woman’s earnings can increase by 10-20 percent
with each additional school year, which means education can promote options for all females
across the globe.

The final benefit is poverty reduction, as lacking education is the root of this problem. A
good education makes the likelihood of higher incomes much greater, because education is
critical to escape chronic poverty thus preventing transmission of poverty between
generations, according to the UNESSCO.

Furthermore, this solution has some challenges. It could place a great financial burden on the
government because investment on teachers and facilities is needed. It is also difficult to
provide stable equipment and good teachers when it comes to schooling in remote areas, and
finally, it might take a long time to see the effectiveness.

To sum up, despite these obstacles, I would argue that the solution can bring more
opportunities for mankind regardless of gender and background. Consequently, this can
narrow the wealth gap and boost economic growth, enhance a better living standard for
everyone in the near future.
These are the references, thank you for listening.