Growing inequality and its repurcussions

Author: Aiyza Javaid

Every Pakistani dreams of living in a society where everyone has access to quality education and healthcare, justice and healthy nutrition. Moreover, they aspire to live in a country where power and authority is shared fairly between the rich and the poor irrespective of gender, religion and class. Most importantly, every citizen aspires to live in a land where wealth is not concentrated in hands of a just few.

However, it is sad to note that the gap amongst the rich, mediocre and the poor echelons of our society is rapidly accelerating.

The rich members of our society attain a dominating position, and adopts numerous dictatorial styles and tactics to subdue the members of the lower and middle class in society. People in the upper class society falsely label and blame people who are lower in rank to them to conceal their mistakes and shortcomings. The question that remains is whether or not their power and wealth ought to last forever, and would it permanently assure them peace, happiness and success in the Hereafter too.

This unfortunate scenario of the growing gap between the rich and poor is well-highlighted through different statistics. It has been reported that 18 million of richest people’s total consumption in Pakistan is 1.5 times greater than the poorest 72 million people.

Educational statistics indicate that the education gap between the rich and the poor is increasing. 82 percent of the richest attend the school in Pakistan while only 50 percent of the poorest people attend the school. The poverty trap is also manifested by the fact that the number of out of school children in Pakistan is ranked as second highest in the world. Ali Ailaan has reported that there are about 25 million boys and girls between ages of 5 and 16, who are out of school.

Rising inequality in our society has serious repercussions for social order. From the grassroot level onwards, inequality results in a destructive trap of social polarization, which creates a crisis ridden scenario. Social scientists have claimed that inequality impedes social mobility, stifles talent and potential, and also hampers economic growth. It increases a sense of frustration, deprivation and impatience which fuels offense and crime. Inequality paves the way towards vices like bribery, and nepotism which corrupt politics and law-governing bodies.

Considering the adverse effects of the rich-poor gap in our society, stringent measures need to be exercised to overcome it. On the economic front, there is a need to control tax evasion and the rate of inflation to curb poverty.

Besides this, the indirect tax rate should be decreased, direct tax rate needs to be increased, while public expenditure on low-income housing, and other public utilities should be increased.

The indirect tax rate should be decreased, direct tax rate needs to be increased, while public expenditure on low-income housing, and other public utilities should be increased

The minimum wage laws should be strictly enforced, vocational skills centres should be established and microcredit opportunities should be created to motivate the lower and middle class to flourish. Such measures can help break the inequality trap by improving the flow of wealth in an economy.

There is also a need to create public awareness campaigns targeting the rich and powerful strata of our society and to instill in them a deeper sense of understanding, respect and empathy for the needs of the people lower in rank to them.

The writer is based in Lahore and can be reached at aiyza.javaid@gmail.com

Published in Daily Times, December 31st 2017.

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