Definitely as said by authors ‘‘efforts to alleviate youth unemployment will reduce income inequality’’. Similarly

I have published a article on philanthropy and it has been proved that ‘real philanthropy’ could also help to reduced inequality. Here is the excerpt -



According to a Oxfam’s recent study, the 85 richest people in the world have accumulated the same wealth as the bottom 3.5 billion. One in eight people go to bed hungry every night, while 1.4 billion adults are overweight. Top CEOs were remarkably successful in maintaining their high pay. The ratio between earnings of a CEO and a worker is 243 to 1 as of 2010. Much of the inequality that exists today is a result of government policy, both what the government does and what it doesn’t do (Stiglitz).

Between 2001 and 2011, the number of non-profit sector increased 25 percent. Their growth rate now exceeds that of both the business and government sectors. It’s a massive business, with approximately $316 billion given away in 2012 in the United States alone’’, But on the contrary inequality is increasing. (Buffett, NY Times, 2013). Philanthropy was treated as a source of ‘tax exemption’ and self-business promotion strategy rather than reducing inequality. So some short of improvement on philanthropy is also expected.



Strong desire on philanthropy



Because of need of quick reform philanthropy is being viewed as a potential tool to reduce inequality. Former US President and founder of Clinton Foundation Bill Clinton wrote in Finance and Development that ‘‘We need to find new ways to extend the circle of opportunity…with systems, infrastructure, and networks that enable growth…it enhances the stability of societies, and equally important, it shifts the work of the international aid community from philanthropy to partnerships.’’ In his recent article, World Bank President Jim Yong Kim argued ‘‘how the rich live, is now out… And all of us — all 7 billion of us — face an impending disaster from climate change if we do not act today with a plan equal to the challenge.’’ Nemat Shafik, Deputy Managing Director of IMF, highlighted that income inequality has widened, chronic unemployment and pervasive underemployment have escalated, populations are growing unevenly and climate change is worsening, and further she said that ‘’By 2050, the global economy must provide food and jobs for more than 9 billion people, 85 percent of whom will live in what are now developing countries.A new agenda needs to be truly global in scope, relevant to all in its goals, and realistic in how it assigns responsibilities—to advanced, emerging market, and developing economies. Philanthropy could be a truly global agenda.’’ Because of inequality, Stiglitz says that ‘‘the darkest sides of the market economy that came to the light were the large and growing inequality, … we can achieve our fundamental values, with more opportunity, higher total income, a stronger democracy and higher living standard … by political decisions’’. The CEO of Unilever Paul Polman et.al wrote that ‘‘The capitalist threat to capitalism…Addressing the failures of modern capitalism will require strong leadership and extensive cooperation between businesses, governments, and NGOs.’’ ProjectSyndicate). Jim O’Neill forecasts BRICs would be the most powerful bloc by 2050. (Wagle)



Hence, richest are the output of the state. Now they have their own responsibility. Ignoring their role is neither feasible nor acceptable so as globalization. They do charity work optionally to fulfill their own interest. But what need to be done is private sector need to investment in welfare state as well, not only for their business motive. Certain per cent of profit must go to welfare fund. Weak must be protected not only by the state but private sector is also equally responsible. The contribution to the society will help to increase purchasing power of low income consumer. Increasing purchasing power means consumer society can play effective role in the market as consumer, private and government are parts of triangular shaped relation in liberal economy.

Read more in detail:

http://jesiwagle.wordpress.com/2014/06/06/philanthropy-for-an-equitable-society/

