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OVERVIEW
World leaders, in adopting the Millennium Declaration in 2000, pledged to create a more equitable world. Yet, income inequality has increased in many countries over the last few decades, as the wealthiest individuals have become wealthier while the relative situation of people living in poverty has improved little. Disparities in education, health and other dimensions of human development still remain large despite marked progress in reducing the gaps. Various social groups, especially indigenous peoples, persons with disabilities and rural populations, suffer disproportionately from income poverty and inadequate access to quality services and, generally, disparities between these groups and the rest of the population have increased over time. This is not new. The Report on the World Social Situation 2005 warned of an inequality predicament and concluded that failure to pursue a comprehensive, integrated approach to development would perpetuate such a predicament, causing all to pay the price. The Report on the World Social Situation 2013 builds on that earlier report, emphasizing that addressing inequalities is not only a moral imperative but it is also necessary in order to unleash the human and productive potential of each country’s population and to bring development towards a socially-sustainable path. The Report examines recent inequality trends and analyses their social, economic and political impacts, highlighting new developments and paying particular attention to the situation of disadvantaged social groups. It shows that inequality not only matters to people living in poverty, but also for the overall well-being of society. The Report illustrates that growing inequalities can be arrested by integrated policies that are universal in principle yet pay particular attention to the needs of disadvantaged and marginalized populations. It reminds world leaders that, in addressing inequalities, policy matters. While income inequality across countries has receded somewhat in recent years, it has risen within many countries. Non-economic inequalities have either remained stable or declined, yet remain high. Chapters 1 and 2 present these trends, and compare inequality across regions. The chapters show that some countries have defied the general trend and managed to reduce inequalities, demonstrating that policies can make a difference. The implications of rising inequality for social and economic development are many. There is growing evidence and recognition of the powerful and corrosive effects of inequality on economic growth, poverty reduction, social and economic stability and socially-sustainable development. Chapter 3