The Organization for Economic Co-operation and Development, or the OECD, is trying to urge governments to priorities policies that help reduce inequality in pay while also boosting growth. The growth is getting higher education or to get more women into the work force. These recommendations were announced during the G20 finance meeting in Istanbul. The OECD suggests that pro-growth policies widen inequality rather than help it shrink. Research of pro-growth policies found three main patterns. These are some technology inequalities; some promote labor forces creating more of a wide in wage dispersion; finally, a good number of changes, like better access to education, “unambiguously reduce wage dispersion” with also changes possibly to household income inequality. The conclusion that the OECD came up with is that many countries need to tackle the rising inequalities, making them the priority. Some other recommendations for governments will include low borrowing costs to allow investment into infrastructure; cutting barriers to entrepreneurship and research; and promoting cross-border trade and investment.
I do believe that policies need to be made that will assist in lowering the inequality rates before we tackle making higher financial gain. The OECD is making great ideas in plans, several impressive ideas to make the inequality less. The OECD makes multiple reports that highlight increases in income inequality. They try to come up ways to overcome the inequality and create actual support to make policies that will help these inequalities. After they make analysis of policies and locate the crucial parts, they create plans that will specifically help with the inequality. I believe that they should really consider doing this more often as it will help make things a lot more even. I will read up more on other reports that the OECD has made that affect different locations. If this actually works, there will finally be more equality.
February 13, 2013