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G7 to Tackle Wealth Divide

G7 to Tackle Wealth DivideG7 to Tackle Wealth Divide

Finance ministers and central bank governors of the Group of Seven industrialized countries agreed to make efforts to close economic gaps in their countries during their meeting that ended late Saturday in Bari, Italy, Yonhap reported. The decision was made because failing to address the gap between rich and poor could increase discontent among voters, leading to an unstable political situation as well as negative effects on the world economy. Each G7 country plans to use fiscal spending and structural reforms to improve the economic gap, but the possibility exists that the United States, which has taken the approach of prioritizing its own interests, could derail concerted action among the G7 countries. Globalization has rapidly accelerated since the 1990s, causing the gap between rich and poor to continue to widen. The Gini coefficients of G7 nations, a measure of the degree of income gaps, have reached their highest levels since the mid-1980s, according to the Organization for Economic Cooperation and Development.

 

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