A new equity agenda? Implementation and next steps Discussion Juan R de Laiglesia OECD Development Centre http://www.oecd.org/dev/ ODI 31 March 2006
Context Timely and hot topic Concern about raising inequality Useful broadening of the agenda (multidimensionality) while defining concepts to enable debate Collection of evidence on various dimensions of inequality of opportunity and policy options to address them A new agenda? Focus on the lower end of the distribution makes sense given the mandate of organisations but blurs the distinction 2
Discussion points 1. Determinants of inequity 2. Drivers of change and the political economy of equity 3. What role for donors in an equity agenda? 3
Determinants of inequality of opportunity Focus on inequality traps leaves two questions open: What is the origin of inequities? (history, luck, unobserved differences, culture ) What is the best entry point for policy? What do we know about causation, the importance of the context, dynamics? 4
Inequity and institutional change (or inertia) Persistence of inequity often linked to institutions (market, political, social) Not all institutions are shaped in the same way nor do they evolve at the same speed Need to go beyond a tug-of-war model of power to understand the dynamics and find an entry point for policy. Elements of a conceptual framework: Institutions vs institutional outcomes Culture and norms as meta-institutions? 5
Example 1: Gender and social institutions Important dimension of both intra- and inter-country inequality in opportunities (and outcomes) Social institutions (including cultural traits) have a bearing on women s economic role: Directly, by constraining actions, Indirectly, by limiting access to resources (health, education) and lowering perceived returns Expanding opportunity by making resources available (classrooms, teachers) will not be enough 6
Gender and social institutions (cont d) A new tool for researchers and policy makers: Gender, Institutions and Development Database (GID) 50 indicators on gender discrimination for 162 countries, Including a number of new institutional gender discrimination variables ranging from intrahousehold behaviour to social norms (family code, physical integrity, freedom of dress, ownership rights) 7
Social institutions and gender discrimination 0.50 0.45 0.40 0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00 SA SSA MENA EAP LAC ECA OECD Physical Integrity Family Code Ownership Rigths Civil Liberties 8
Social institutions and women s economic role 0 20 40 60 GHA UKR ISL SWE NZL EST BGRSVK VNM GBR FINRUS HND NAM CAN NOR USA ISR IRL DNK COL AUS CHE PRT POL URY THA NLD DEU FRA ARG HUN BRA ARM BWA ROU CZE BEN BEL AUT PAN LKA KOR PRY ESP ECU PHL ITAJPN GRC VEN NIC TGO CRI ZAF LUX MEX MUS HTI CHN ALB ETH PER MYS KEN CHL CUB BOL MMR MRT FJI DOM UGA MLT SLV IDN CAF GNB ZMB TZA AGO TUN MAR SEN LBN MDG KWT JOR BGD ZWEEGY TUR CIV CMR SYR IND IRN LBY DZA BFA MWI BHR NPL MOZ ERI NGA OMN UAE MLI GNQ NER PAK TCD YEM 0.2.4.6.8 Social Institutions (average) Women as % of non-agricultural labour force (%) SAU SDN 9
Example 2: Family institutions and savings Family institutions differ substantially across countries and societies: Importance and role of extended family Polygamy Safety net role ( tax on success, intra-family credit) Family structures and norms all the more important in the absence of certain market institutions or in settings where the household is a production unit. Incentive structure for saving, investment and asset accumulation 10
Drivers of change and the political economy of change Who will put reform on the agenda? Who will choose what dimension receives priority? Who will implement reform? Understanding coalitions and dynamics in the country and culture-specific context The rules of political interaction: political institutions, voice and elites. What role for democracy? De-concentration? Decentralisation? Culture and politics: informal institutions (tribal and family ties, big man syndrome) 11
Donors Equity is not on the bilateral donors agenda but pro-poor growth is (DAC-POVNET work) A wide definition of pro-poor growth a pace and pattern of growth that enhances the ability of poor men and women to participate in, contribute to and benefit from growth encompasses many of the issues of the equity agenda: Multiple interrelated dimensions Importance for long-term prosperity The need to re-examine traditional dichotomies and re-assess trade-offs 12
What role for donors? Supporting in-country processes that are context sensitive Long-term, flexible and responsive support What else is new? Focus on aid effectiveness (Paris declaration) Transparency, accountability and governance Enabling environment and private sector development Holistic approach to agriculture and rural livelihoods 13
Implementation and next steps Research agenda: Deep determinants of inequality in opportunities Political systems, institutions and agency Implementation: Entry points Instrumental equity lens and the poorest of the poor Crucial role of voice and institutional change What about fragile and conflict states? What role for donors with respect to in-country political processes? 14
Thank you for your attention! 15