Combating income inequality

A contending issue globally and in present-day Nigeria has to do with inequality which goes along with poverty, class segregation and conflicts.  Income is a reward accruing to an individual on account of his contribution to the growth of society. Nigeria is endowed with human and natural resources which can be translated to wealth for the benefit of all. Lack in Nigeria is characterised by lack of development, low infrastructure and lack of access to economic opportunities by the majority of her citizens. Inequality is manifested by income disparity, consumption, wealth, and gender.   There is also unequal urban settlement; some live in poorly planned, unconnected settlement where there are fewer infrastructures while some are in well planned low-density areas.

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Inequality creates a wide margin between the rich and the poor; this is a situation where people lack sufficient income to obtain minimum levels of health services, food, housing, clothing and education.  Consumption pattern is determined by income; the poor are limited in pursuing basic needs of life such as education and health for their children. Improved economic growth and high-level productivity and increased income are panaceas to reducing inequality. Skill, knowledge, and productivity determine levels of income and translate potential into wealth to improve the gross domestic product of a nation.  All citizens should be allowed to compete favourably for economic opportunities according to their potential.

Wage differential arises as a result of productive capacity of individuals. The defective structure of the economy has caused inequality; many people are willing to work but the opportunities are not available.  There is no equitable distribution of income, hence the relative deprivation being experienced by the majority. Technological change and globalisation are powerful tools required for income distribution. One of the impacts of inequality is reduction in human development index such as low life expectancy, youth unemployment, lack of life basic needs such as affordable housing, basic public infrastructure, low health services, inadequate manufacturing capacity and poverty.

The negative effects of unequalled societies have been one of the causes of environmental problems, higher rates of violent crimes, depression (psychological problems), abuses, lawlessness, untimely death, educational backwardness as well as ranges of social ills which occur when many people struggle to make ends meet.

Politics and power have roles to play in bridging the gap of inequality in our society. This can be accomplished by creating opportunities for willing and competent hands to participate in governance. This is achievable through willingness on the part of our leaders, promulgation of good policies, laws and programmes that we will evolve an equitable society.  The structure of our nation which is capitalist in nature has been responsible for inequality.

Regulatory steps through income redistribution can be taken by the government to tax the rich in our society majorly to reduce inequality where some are unimaginably wealthy and the majority are wallowing in poverty.  Sustainable development, involvement and participation in decision making would afford everyone the opportunity to contribute to the success of the economy and society.  Meaningful policies need to be formulated to support and protect low income earners from accessing wealth and quality of life.  Redistribution of income through taxes and subsidy on basic necessities are very essential. Enabling environment should be created for private sector of the economy to provide employment opportunities. We need to create jobs by promoting small and medium scale enterprises.

• Folake Fashona, Ibadan.