Equity
March 23, 2009
Overview
Economic equity refers to what is fair. With all variables constant, an economy where resources, goods or services are apportioned amongst citizens is considered fair. There are five economic goals that each economy strives to achieve, and economic equity tops the list. Arguably, economic equity is one of the most debated over part of economics. It is in light to the fact that the society is founded upon a basis of equal opportunity for all people regardless of each person’s income level or race.
That not withstanding, a notable difference exists amongst individuals of different ethnicity backgrounds, races and gender. Thus, uncovering the primary cause of these differences becomes difficult to throw light on, consequently making it difficult to resolve. Generally, unequal income amongst groups may lead to lack of cohesion in a given community and poor relations. These tend to happen in most economies or groups where there is a perceived thought that apparent equal opportunities favor a certain group of individuals to the disadvantage of another.
Debatably, fairness or equity is not achieved by religiously following the optimist Lorenz curve where wealth ought to be equally distributed on a 20-20 basis; nor is equity achieved by the complete elimination of wealth distribution because sagaciously, the uneducated and less privileged individuals would be left with nothing at all to assist them.
Creating better economic Equity
It is believed that if some alterations are made on existing economic policies, equity may be achieved. This is in light to the fact that within a given economy, there exists a percentage of people who possess nothing and a percentage of people who possess more than enough wealth or money.
Additionally, it is vital that all individuals in a given society gain sufficient access to businesses that form part of the mainstream economy, to be subjected to equal areas of opportunity. Many a times, individuals living in low-income areas lack ready and adequate access to essential retail establishments.
Generally, creating a better economic equity means promoting a more extensive prosperity revolving around creating a conducive environment which enables broad-based economic expansion. Such an environment’s basic requirements should include well-informed and healthy citizens, an efficient government or jurisdiction, competent businesses and efficient, focused public policies.
This can be achieved by fortifying the local and national economic infrastructures in an effort to reap better positive benefits from globalization, especially in undeveloped and developing economies. Globalization presents positive opportunities, thus, an economy should endeavor to encourage investment and economic expansion, at the same time protecting the needs of its end users, its workforce and the general public.
By the same margin, an increased transparency of the government can also contribute to economic equity. The government plays a major role in combating corruption, thus it should be open enough to gain the trust of its citizens. On the same note, to create a balance of trade between two countries, transparent and fair legislation should be put in place in individual home countries.
Similarly, education targeted towards specific groups such as semi-skilled workers, can be used as a premise for approaching inequity. It is also believed that if the impact of micro credit programs can be deepened, by say recycling repaid loans back in the local economy, it can help create at least some level of economic equity.
In wrapping up, it is a reality that there is an enormous economic gap existing in many economies which underlines the distance which ought to be traveled to achieve economic equity. Irrespective of the difference of the inequity, such as income, property, investment or ownership, there is a clear cut line drawn between the haves and the have not in either economy.
Comments
Got something to say?
Sign up to receive the latest breaking news, as well as all of your other favorite headlines!
