One of the world’s great achievements of the past decades has been the significant fall in global poverty. Between 1990 and 2012, the proportion of humanity living under $1.90 a day fell from 37 per cent to only 13pc, driven in large part by the efforts of China. South Asia also witnessed a major decline in poverty, from 51pc to 19pc, with unequal progress across countries.

Despite this tremendous achievement, income inequality has increased both within and across countries. Today, high-income countries with 16pc of the world’s population represent 55pc of income while low-income countries with 72pc of the population account just over 1pc. Inequality matters for moral reasons; it also matters because of its implications for growth and development outcomes. Persi¬stent inequality hampers economic growth, impedes poverty reduction, fuels crime, squa¬n¬ders talent and human potential, and stifles social mobility. An unequal society is not only unfair, it is less prosperous and stable.

Escaping this inequality trap is the 21st century’s most critical challenge that lies at the heart of the global agenda which has been enshrined in the Sustainable Development Goals (SDGs) that has two goals, including the first SDG on ending poverty in all its forms; and the 10th SDG on leaving no one behind.

In Pakistan, the challenge of inequality is equally daunting. While consumption-based poverty dropped from 57.9pc to 29.5pc between 1998-1999 and 2013-2014 and multidimensional poverty — which includes health, education and living standards — fell from 55.2pc to 38.8pc between 2004-2005 and 2014-2015, inequality has actually grown. In 1987-1988, the Gini coefficient, which measures income inequality, was 0.35; by 2013-14 it had risen to 0.41. Pakistan’s richest 20pc now consume seven times more than the poorest 20pc.

Regional disparities are stark.

Regional disparities are stark and slow down growth and development. The government’s Multidimensional Poverty Index released recently found that 54.6pc of rural Pakistanis experienced poverty compared to 9.3pc of those in cities. Multidimensional poverty stands at 31.5pc in Punjab but rises to 73.7pc in Fata. While multidimensional poverty in Islamabad, Lahore, Karachi, and Rawalpindi is below 10pc it exceeds 90pc in Killa Abdullah, Harnai, Barkhan, Sherani Kohistan. Hence, some Pakistani districts are as well-off as any developed country while others are on par with the poorest in sub-Saharan Africa.

Inequality’s insidious effects pervades families. As women are mostly engaged in unpaid family work, their very real economic contribution is unaccounted for. Women own less than 3pc of land which impacts on their economic empowerment. Their participation in the labour force is a mere 18pc compared to 71pc for men. This is the lowest in South Asia after Afghanistan. Back in 1968 the renowned economist Dr Mahbub ul Haq identified 22 families which then controlled two-thirds of Pakistan’s industrial assets. In a 1973 article in The Times, Dr Haq called for reforming Pakistan’s economic, social and political institutions to help prevent the concentration of such immense wealth amongst the few.

Although the landscape has changed considerably since then, his recommendations remain painfully valid. Pakistan’s institutions, incentives, laws and norms continue to conspire to create rent for the rich and burdens for the poor.

These include tax exemptions on select sectors and indirect taxes which disproportionally affect the poor. The richest districts in Pakistan receive, on average, five times more public funds than the poorest, further aggravating inequality. The high cost of running for elections systematically excludes poor Pakistanis from political institutions. Discri¬mination on the basis of gender, economic status, religion and social identity restr¬icts upward mobility.

To date, Pakistan’s response to inequality has been superficial, focusing on symptoms rather than the root causes. As a result, inequality has persisted and even grown.

To tackle inequality seriously requires a holistic approach, addressing both its structural and distributional dimensions. Key institutions need to be reformed, and fiscal, monetary and other policies made equitable. Regional inequality may be addressed by investing adequate public funds in lagging regions and districts, and particularly in rural areas. Governments should use the Multidime¬nsional Poverty Index to inform allocations, especially under their Provincial Finance Com¬m¬i¬ssion awards, which are long overdue. Gender responsive budgeting can help mainstream women’s priorities in budgeting processes.

Most important, however, is to bring the debate on inequality back into the public realm. Politicians, bureaucrats, civil society, the media, many development partners and the wider public all continue to ignore the cancer of inequality on Pakistani society and economy. It is time to recognise that this inequality is not inevitable. Today, nearly 50 years after Dr Haq wrote his seminal diagnosis, it is time to act so Pakistan can escape its inequality trap and create the just, stable and dynamic society envisaged by its founders.

The writer is the outgoing country director for UNDP in Pakistan.
Published in Dawn, August 9th, 2016

This story was originally published by Dawn, Pakistan

The year 2015 will be remembered for two landmark global agreements. In September, UN member states endorsed the 2030 Development Agenda and the Sustainable Development Goals. Later, 196 parties to the UN Framework Convention on Climate Change adopted the Paris Agreement at the conclusion of UN Climate Change Conference (COP21) in France.

The year will also be remembered as the warmest on record with temperature rises breaking the one degree Celsius milestone above pre-industrial era average. A heatwave swept the globe including Sindh where 2,000 perished reminding us of the increased intensity and frequency of climatic events and its growing impact on development, particularly the poor and vulnerable.

It has been established that climate change is the consequence of Greenhouse Gas Emission (GHG) and is caused by human activities.

T he Intergovernmental Panel on Climate Change Synthesis Report of 2014 pointed to an increase in global temperature of 4°C contrary to the initial estimates of about 3.5°C till 2100.

Developing countries are more vulnerable because of their dependence on agriculture and socioeconomic dynamics including their weak capacities to cope with climate change.

In 2008, more than 100 million people fell below the poverty line largely due to food price hikes and low agriculture yields.

At the COP21 participating countries adopted the first-ever universal, legally binding climate deal that promises a global action plan to save the world from the effects of climate change by limiting global warming to 1.5 °C.

The COP21 agreement is indeed a diplomatic success. However, the intentions in the Paris Agreement and actual commitments in the form of Intended Nationally Determined Contributions (INDCs) by governments don`t connect. Estimates suggest that the combined impact of all INDCs, if fully implemented, will account for 86pc of the GHG emissions and will still result in global average temperature hikes above the 2°C threshold. Similarly, the intention of developed countries to mobilise $100 billion per year until 2025 is not only insufficient but also uncertain to be realised.

Pakistan is the eighth most vulnerable country to climate change though it produces less than 0.5pc of global emissions. Events like the 2010 floods which resulted in 2,000 human lives and economic losses equivalent to 7pc of GDP reconfirm that climate change is the most immediate development threat faced by this country. There is a clear and visible shift in summer monsoons trend from northeast to northwest by a range of 80-100 kilometres, threatening the agriculture sector. Frequency of other extreme weather events like cyclones, droughts and glacial lake outburst floods showthat Pakistan is becoming increasingly vulnerable to climate change.

Pakistan is conscious to the threats. The National Climate Change Policy (NCCP) of 2012 outlines mitigation and adaptation actions. Pakistan is one of the few countries to have undertaken a Climate Public Expenditure and Institutional Review (CPEIR) and has established public expenditure and institutional benchmarks. Post 18th Amendment, climate change has largely become a provincial subject and provinces must now take the lead. It is encouraging to note that some of the provinces have already started initiatives such as the `Billion Tree Plantation` initiative.

The deficit of vision and action remains widespread however. The INDCs put forward by Pakistan for the COP21 were considered limited and devoid of quantitative commitments and investment requirements for adaptation and mitigation. Using the CPEIR, Pakistan could have spelled out in detail its vulnerability to climate change. This would have afforded an opportunity to plead climate change-related needs in front of lobbyists,donors and negotiators across the globe. Pakistan can still revise its INDCs.

It needs strong institutions to implement its NCCP. A `whole of government` approach including parliament, finance, planning and sectoral departments is needed.The medium-term budgetary frameworks of ministries should talce into account climate change`s effects. The finance and planning institutions at the federal and provincial level should track related expenditure and progress. Provinces must integrate climate change issues in their growth strategies given its impact on poverty and social development.

Pakistan incurred $6bn climate changerelated losses in 2012. It needs to invest 5.5pc of GDP annually for mitigation and 1.5-3pc for adaptation to address its effects. For a 15pc reduction in GHG, an annual investment of around $8bn is needed. Given the global shortfall in financing, Pakistan requires an overarching climate change financing framework which can help streamline budget allocations and ensure holistic response to the challenge.

So far the evidence affirms that no one will remain untouched by the consequences of climate change. Developing countries will be most affected. It is time to act together. As UN Secretary General Ban Ki-moon said, `there is no plan B, because there is no planet B`.

The writer is country director of UNDP in Pakistan

This story was originally published by Dawn, Pakistan