Inequality threatens long-term social and economic development, harms poverty reduction and destroys people’s sense of fulfillment and self-worth.

The incomes of the poorest 40 per cent of the population had been growing faster than the national average in most countries. But emerging yet inconclusive evidence suggests that COVID-19 may have put a dent in this positive trend of falling within-country inequality.

The pandemic has caused the largest rise in between-country inequality in three decades. Reducing both within- and between-country inequality requires equitable resource distribution, investing in education and skills development, implementing social protection measures, combating discrimination, supporting marginalized groups and fostering international cooperation for fair trade and financial systems.