Why Should We Care About Social Inequality? The Case of Guyana

Rising inequality is a defining challenge in the 21st century and although the 2030 agenda for sustainable development is far from perfect, its commitment to tackling inequalities is praiseworthy. To this end, a deeper understanding of how social inequality affects sustainable development can help us rethink development policies and practices. Social inequality is multidimensional and in the last two decades, there has been an upsurge of research in this area. However, these research do not provide a comprehensive understanding of the nature and extent of inequality and its impact on the United Nations Sustainable Development Goals. In particular, they ignore important dimensions such as wealth and the environment in their analysis. In this dissertation, the discourse on how inequality has evolved is first explored and the analysis reveals that the inequality discourse has shifted from its early focus on the measurement of conditions, defined as the unequal distribution of income and/or material goods, towards a more comprehensive approach of measuring inequality of opportunities. Second, the dissertation examines the short run and long run relationship between social inequality and sustainable development. This is achieved by relying on panel data for 142 countries using the Coefficient of Human Inequality and the Sustainable Development Goals Index and the findings reveal that social inequality and sustainable development share a negative relationship which appears to be robust to the inclusion of controls and the country’s level of development. Finally, this dissertation examines the inequality situation in Guyana by relying on a survey of 403 households and in doing so it computes a measure of social inequality using the Atkinson index along with the dimensions of income, education, health, wealth and the environment. The dissertation finds that Guyana is experiencing a high level of social inequality and it is hindering the country’s progress on the sustainable development goals.