IMF warn economic inequality is threat to the economy
In the new World Economic Outlook published today by the International Monetary Fund, Olivier Blanchard, the IMF’s Economic Counsellor, warns that the effect of inequality on economic progress is set to become a central problem.
Imran Hussain, Head of Policy for Child Poverty Action Group, said:
“The IMF warning is an important reminder that reducing inequality and ending poverty is essential to a strong economy.
“We always put children first in family life, and there’s good evidence to suggest that by doing the right thing for Britain’s children we can benefit the economy too. A recent study suggests that if we ended child poverty and no longer had to pay the costs of lost potential and damaged lives, the economic benefit would be more than £1,000 per every UK household.
“We can’t get out of the woods by leaving millions of children behind – it’s a false economy. If we want Britain’s economy to flourish, we must make a society in which every child can flourish and develop to their full potential, safe from the scourges of hunger, cold, bad housing and social exclusion.”
Notes to Editors
- The warning on inequality is made in the foreword to World Economic Outlook, April 2014 (IMF): http://www.imf.org/external/pubs/ft/weo/2014/01/pdf/text.pdf
- Research by Donald Hirsch, Director of the Centre for Research in Social Policy, University of Loughborough, estimated the cost of child poverty to the UK in 2013 to be £29 billion. Details of the composition of the total cost can be found in the published analysis: http://cpag.org.uk/sites/default/files/Cost%20of%20child%20poverty%20research%20update%20%282013%29.pdf
- There are approximately 25 million households in the UK (ONS), so the cost per household will be over £1,000. By ending child poverty, the UK would no longer face these costs.
- CPAG is the leading charity campaigning for the abolition of child poverty in the UK and for a better deal for low-income families and children.
- CPAG is the host organisation for the Campaign to End Child Poverty coalition, which has members from across civil society including children’s charities, faith groups, unions and other civic sector organisation, united in their campaigning for public and political commitment to ensure the goal of ending child poverty by 2020 is met.
For further information please contact:
CPAG Press Officer
Tel. 020 7812 5216 or 07816 909302