How interlinked crises are driving a more unequal and unstable world

"We live in an unequal, unstable and unsustainable world." The statement may sound simple, but it has far-reaching implications. Although it paints a broad-brush picture of the contemporary world, the reality is that for quite some time, the world has been facing multiple mutually reinforcing crises, occurring all at the same time.

- BY SELIM JAHAN

Besides, inequality, instability, and unsustainability are interdependent: persistent inequalities in a society may result in instability, while instability in a country may give rise to unsustainability. Furthermore, inequalities, which operate on many planes—political, economic, social, cultural—might manifest not only in terms of outcome, such as income and wealth, but also in areas of opportunities in basic social services, such as education and health. Similarly, the instabilities may arise from conflicts and wars, both within and outside countries, as well as from economic shocks, recessions and meltdowns. Finally, sustainability is not just limited to the environment only; political, economic and social sustainability are equally important.

If we consider global income and wealth, the world is appallingly unequal. The top 10 percent of the global population makes 52 percent of the world's income, while the bottom 50 percent makes only eight percent of it. The contrast is even starker in wealth. The top 10 percent of the global population owns 76 percent of the global wealth, while the bottom half of humanity owns a meagre two percent of it. Similar trends would be observed regionally or at the country level. Such inequalities have three critical implications.