FP6 research on social inequalities highlighted in new report
A recently published European Commission report, 'Why socio-economic inequalities increase?', outlines a series of facts and policy responses to widening disparity and inequalities in Europe. While socio-economic inequalities continue to rise throughout much of the world, the report's authors deem that a new socio-ecological model is required. The publication is based on an extensive review of 13 research projects financed by the European Commission's Research Directorate-General under the Sixth Framework Programme (FP6). They investigated the processes underlying inequality, poverty and exclusion, and the effectiveness of strategies designed to promote social cohesion in Member States. The projects also looked into the actual mechanisms needed to offset inequalities. 'The way forward is a new socio-ecological model which takes account of European democratic values such as equity, and will allow real progress. This will make sure that socio-economic inequalities will decline and soon,' according to the foreword of the Commission report. Moving forward and reducing inequality will require, among other things, an understanding of the impact that social and economic policies have on the various dimensions of inequality. These dimensions are inter-related and include earnings, income, education, health and a sense of well-being. The authors define socio-economic inequality as the disparities in both economic and social resources, linked to social class. This also includes the aforementioned variables of income, education, health and well-being. A new model is already at hand in the form of the Commission's Europe 2020 strategy for 'smart, sustainable and inclusive growth'. Smart growth refers to developing an economy based on knowledge and innovation. Sustainable growth seeks to promote a more resource efficient, greener and more competitive economy. And finally, inclusive growth aims to foster a high-employment economy delivering social and territorial cohesion. The report also states that regardless of economic growth, inequalities continue to encroach on even the wealthiest of countries. Indeed, the majority of Member States have seen a rise in inequalities when compared to 1980. The type of growth experienced over the past few decades has not delivered on its promise of removing inequalities in Europe. This is because economic modernisation and labour market regulation has contributed to the income gaps and employment polarisation, the report suggests. Inequality vicissitudes can be prevented, according to the EC study's authors, by following a corporatist model of welfare not dissimilar to those used in Nordic countries. To succeed, though, a more holistic and inclusive approach to policy is required. The authors point out that income inequalities, for instance, have increased in Nordic countries whereas continental European countries experienced only modest increases or even decreases. In some cases, these differences are so large that low-paid employees are trapped in a cycle of poverty or constantly face the threat of poverty. Employment, therefore, does not necessarily safeguard one from poverty. Women and single mothers, in particular, are often subject to an intergenerational cycle of poverty. To break the cycle, policy makers need to expand economic indicators like the ubiquitous GDP figure to include social objectives, the report states. It also advocates more support for labour market institutions and greater political commitment to reducing social and economic inequality, in particular low-paid jobs. The report concludes by saying that 'The Framework Programme research in social sciences and humanities convincingly shows that less unequal societies provide more economic and social advantages. This is why the European Union needs to put policies against socio-economic inequalities at the heart of its action, for the benefit of all citizens.'