An equitable distribution of wealth could be the fuel that drives economic growth. Wealth imbalance is a global phenomenon. The Global Wealth Report 2017 published by Credit Suisse reveals that the wealthiest 1% own 50.1% of all the household wealth in the world. The world’s 8,740,000 new millionaires are only a small fraction of the global population. These figures are astounding and show an apparent unequal distribution of wealth across the globe.
Inequality hinders economic growth because those the bottom of the pyramid suffer from multiple problems. Extreme inequality undermines democracy, the economy, public health and culture. In developing countries like Zimbabwe, the high rates of unemployment have caused extreme inequality.
Equitable sharing of wealth gives all citizens a fair chance to succeed. This is a favourable position for any economy to operate in, hence very country should strive to reduce the wealth gap.
Inequality and Health
Inequality has a negative impact on public health. Countries with high percentages of people in the low income bracket face challenges such as lower life expectancy and high rates of infant mortality. Research shows that these can be linked to the level of economic inequality. Greater economic inequality appears to lead to poor health outcomes.
According to UNAIDS, in 2016 Zimbabwe had 1,300,000 people living with HIV and AIDS. HIV and AIDS causes economic hardships in households as a result of the expenses incurred while accessing health services and the decrease in income due to morbidity and mortality.
Empowering youth with digital jobs enables families to tackle some of these challenges. With a steady income, families can access good health care services.
Unemployment and Inequality
According to the International Monetary Fund (IMF), Zimbabwe has the second largest informal sector with a 60.6% rating. This is a result of an unemployment rate that is above 90%. High unemployment rates affect an economy’s ability to utilise its available resources in the most efficient way. Failure to operate at full capacity has a direct impact on overall economic growth.
Tackling unemployment can help countries such as Zimbabwe close the growing inequality gap.
Companies are encouraged to identify resources and skills that are lacking in local communities and partner with complementary partners like Skilled Staff, for economic and social value creation. Outsourcing digital work to Skilled Staff helps to create much needed opportunities for unemployed and yet talented individuals – an opportunity to be part of the formal economy and a chance to earn a monthly wage. In the long term, this helps to reduce unemployment, which in turn leads to economic growth and better social cohesion.
Tasks that you can outsource to Skilled Staff
- Web Development
- Mobile App Development (iOS and Android)
- Data Processing
- Online Customer Service
- Online Marketing
- Social Media Management
- Administrative Support