Efforts needed to stop inequality traps

 

There is a call for governments to rethink urban housing, transport, schooling and jobs strategies to ensure that cities do not become inequality traps.
 
This is according to the new OECD report “Making Cities Work for All: Data and Actions for Inclusive Growth”, which shows that the majority of cities have higher inequality than their respective national average.
 
The report reveals that rapid growth in the world’s cities, driven in part by unprecedented migration from rural areas in de-veloping and emerging economies, means that by 2050 around 70 per cent of humanity will live in cities, up from around half today. The data suggests that as cities get larger, they tend to become more unequal and thus could become drivers of inequality on a national level.
 
“Cities are incredible generators of growth and well-being, yet poor planning can turn them into inequality traps,” said OECD Secretary-General Angel Gurría.
 
“If we want to curb the global trend of rising inequality, we must focus our efforts on cities and ensure that they work to the benefit of all.”
 
In advanced economies, cities have generated over 60 per cent of jobs and economic growth in the past 15 years, and household incomes are on average 18 per cent higher in cities than elsewhere.
 
“Yet not all cities have managed to grow inclusively, that is while engaging everyone in the process. Access to opportunities can stall for many low-income residents living in distressed neighbourhoods. The chances of success for children born into such areas are often tied to the socio-economic status of their parents.”
 
The report also observes that when policies for urban housing and transport are poorly co-ordinated, they can increase segregation and restrict upward mobility for city dwellers. However, smarter planning of public services can help lower-income households thrive in cities affected by sky-rocketing house prices.
 
The report recommends that governments improve access to education with a particular focus on disadvantaged groups and increased investment in early childhood education, as well as establish vocational education and training programmes that match local needs and invest in adult skills training and entrepreneurship; and encourage job creation in locally relevant industries. 
 
In addition, reduce regulatory barriers to home building; co-ordinate investment for urban housing and transport;  ensure that national and local policies for urban development support, rather than contradict, each other; provide easier access to public services such as health care; and develop urban regeneration stra-tegies across the board. (TL)

Barbados Advocate

Mailing Address:
Advocate Publishers (2000) Inc
Fontabelle, St. Michael, Barbados

Phone: (246) 467-2000
Fax: (246) 434-2020 / (246) 434-1000