http://www.ibtimes.com/articles/108014/20110202/imf-kahn.htmThe sharp rise in global unemployment is a major social problem. If you lose your job, you are likely to suffer from poorer health and shorter life expectancy, and your children are likely to perform worse in school. And where people are without hope of finding a job, society as a whole suffers—which in turn can threaten political stability.
But unemployment is also a major economic problem. The need for action to overcome the jobs crisis was the central message of President Obama’s State of the Union address last week. It was also a strong undercurrent of the political turmoil in Tunisia, and of rising social strains in other countries.
Income inequality is also something that touches countries at all stages of development. In the U.S., for example, income inequality before the crisis was back to levels not seen since 1929—right before the Great Depression. But income inequality matters for emerging and developing economies too.
Here in Asia, there have been remarkable social advances over the last decades, with over half a billion people lifted out of poverty. At the same time, income inequality has been on the rise. The leaders of China and India have put tackling income and wealth disparities high on their policy agendas. And even in a wealthy nation like Singapore, Prime Minister Lee has noted that the widening income gap is an issue of national concern.
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