Rising Inequality: Debating Factors

Inclusion and exclusion are two contradictory processes which coexist in both the developed and developing countries. The widening gap between rich and poor across the world is an instant example of exclusion. According to the Oxfam International Report the ‘richest 85 people on the globe control as much wealth as the poorest half of the global population put together.’ Intellectuals and policymakers, across the world, have been trying to figure out the factors responsible for rising inequality. In India, scholars like Amartya Sen have explained about the varying nature of exclusion. The concepts of ‘Active’ and ‘Passive’ exclusion are an important contribution by him. The Government of India too recognized the importance of inclusion. In three volumes of the 12th Five Year Plan (FYP), the word inclusive has appeared 217 times. Inclusive, according to the FYP, has various meanings such as poverty reduction, group equality, regional balance, reducing inequality, empowerment and employment generation.