Study reveals growing social inequality in OECD countries

[Hannah Bell]

A study presented Monday by the Bertelsmann Foundation entitled “Social Justice in the OECD—Where is Germany?” shows that social inequality is increasing in many OECD countries and that the social divide is growing particularly rapidly in Germany. Increasing numbers of people in Germany—the richest country in Europe—are plagued by poverty and unemployment.

From a total of 31 developed countries in the OECD (Organisation for Economic Cooperation and Development), Germany landed in the middle of the table—behind countries such as Great Britain and the Czech Republic. The researchers began their study by saying: “In terms of social equality, Germany still has some catching up to do.”

Recent calculations reveal significantly higher levels of poverty in Germany in 2008 than existed 10 years previously. Official statistics state that 9.3 percent of all people are regarded as poor, and 14 percent as relatively poor—i.e., about 11.5 million people in all.

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By Dietmar Henning
8 January 2011
A study presented Monday by the Bertelsmann Foundation entitled “Social Justice in the OECD—Where is Germany?” shows that social inequality is increasing in many OECD countries and that the social divide is growing particularly rapidly in Germany. Increasing numbers of people in Germany—the richest country in Europe—are plagued by poverty and unemployment.

From a total of 31 developed countries in the OECD (Organisation for Economic Cooperation and Development), Germany landed in the middle of the table—behind countries such as Great Britain and the Czech Republic. The researchers began their study by saying: “In terms of social equality, Germany still has some catching up to do.”

Recent calculations reveal significantly higher levels of poverty in Germany in 2008 than existed 10 years previously. Official statistics state that 9.3 percent of all people are regarded as poor, and 14 percent as relatively poor—i.e., about 11.5 million people in all.

Poverty is concentrated in the east and north of Germany. Twenty years after the reunification of Germany, almost a fifth of the population in the eastern provinces is affected by poverty.

According to the Bertelsmann Foundation report, the polarisation of incomes in Germany over the past 20 years occurred at a faster pace than in almost all other OECD member countries. Since 2000, researchers have documented not just a relative, but also an absolute polarisation of income groups. This means that real income fell for the poor and increased for the rich over the period.

The situation in Belgium is similar to that of Germany. Almost half of the unemployed have been without employment for more than a year. This trend especially affects the elderly.

The worst result for labour market policy in the OECD was registered by Turkey, with most northern European countries receiving the best rankings. Sweden, however, has a relatively high level of youth unemployment—three times higher than the overall rate.

Despite such discrepancies, the study demonstrates that social inequality is assuming explosive proportions in many OECD countries. Southern European countries such as Italy, Portugal and Spain rate even more poorly in the rankings than Germany. The report also criticises the situation in the US and Ireland “due to particularly worrying levels of poverty.”

http://www.wsws.org/articles/2011/jan2011/oecd-j08.shtml

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