Economic policy to reduce inequality encompasses a diverse set of mechanisms to exert control over capital flows for the purposes of redistributing resources more fairly within and between countries.
The Sustainable Development Goal (SDG) 10 aims to reduce income inequality within and between countries. Specifically, the goal includes the targets of sustaining the income growth of the bottom 40% of a population at a rate higher than the national average by 2030 and achieving greater equality through fiscal, wage, and social protection policies. These inequality reduction goals apply to rich and poor nations alike and require strategies that go beyond increasing official development assistance and financial flows to where the need is greatest (UN 2018). The economic policies that can advance these goals are inherently context-specific, and there is no single prescription for reducing inequality across diverse contexts.
However, two general approaches must be.
