The Global Development Gap

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Question

Is the gap between developing and developed countries getting bigger or smaller ?

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Introduction

1. Development of the income gap

2. Reasons of the gap and chances to close

3. How does this matter to Japan?

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Development of the income gap

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Analysis

• Total GNI is increasing

• Asia and Africa have kept bottom

• Few countries’ GNI is much higher than others

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GNI per capita

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Analysis

• High GNI countries' gap is high

• The gap is increasing, especially top and others

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Examples of the gap

• Top 1 % ’s income is 20 % of US GNPBill Gates and Warren Buffett‘s asset is same as under 40%‘s

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Reasons and measures

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Reasons of the gap

• Globalization - Development of capital market

• Technology advance - Progress of ICT

• Relaxation of regulations – Tax system

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Chances the gap will close

Millennium Development Goals (MDGs)

• 8 international development goals by 2015. • 189 countries commit

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Millennium Development Goals

1. Eradicating poverty 2. Achieving universal primary education3. Promoting gender equality 4. Reducing child mortality rates5. Improving maternal health6. Combating HIV/AIDS, malaria, and other diseases7. Ensuring environmental sustainability8. Developing a global partnership for development

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MDGs - Within close reach

• Extreme poverty rate 1990 : 2 bln 　→　 2010 : 1.4 bln

• Primary education rate 1999: 58% 　→　 2010 ： 76 ％　 in sub-Saharan Africa

• Environment　　 86% people can get safe water

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Communication for Global Leaders

MDGs - Gradually

• Combating diseases

HIV patients 2000 : 2.2 mil 　→　 2010 : 1.8 mil

New HIV patients in central Asia 　 → 　 increasing

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MDGs - failure

• Promoting gender equality

• Reducing child mortality rates

• Improving maternal health

• Goal : 0.7% of GNI for ODA × 　 still 0.31%

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Chances the gap will close

Flexicurity – Denmark

Flexicurity = Flexibility + Security

1. flexibility in the labor market2. social security 3. an active labor market policy04/14/2023 Communication for Global Leaders 17

How does this matter to Japan?

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How does this matter to Japan?

• Salary decrease

• Fixed society - Hierarchization

• Deteriorating security

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Conclusion

• The gap is increasing, especially top and others

• There are some chances the gap will close

• The gap worsens the world

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