Vietnam ranks second globally for increasing social security spending

By Phuong Anh - Oct 10, 2018 | 08:54 AM GMT+7

TheLEADERVietnam has increased 8.52 per cent in spending on social security compared to last year, the second largest increase in the world, according to the commitment to reducing inequality index just published by Oxfam.

Vietnam ranks second globally for increasing social security spending
Social security spending is on rise

Ukraine ranks first with 15.1 per cent – increase during the last year.

According to the index, Vietnam ranks 12th in the world in corporate income tax reduction with two percentage points. Vietnam is also in the top 10 most committed countries in East Asia and Pacific on progressive taxation.

Vietnam’s commitment to reducing inequality index (CRI) ranks 99th globally, showing the government's commitment to reducing inequalities.

The Index ranks 157 countries on their policies on social spending, tax, and labor rights - three areas are considered to be most critical to reducing inequality.

The index comes ahead this week’s meeting of finance ministers, central bank governors, and other economic leaders at the World Bank and International Monetary Fund Annual Meeting in Bali, Indonesia.

Inequality slows economic growth, undermines the fight against poverty and increases social tensions. The World Bank predicts that unless governments tackle inequality then the goal of eradicating extreme poverty by 2030 will not be met and almost half a billion people will still be living in extreme poverty.

Matthew Martin, Development Finance International’s director, said: “What’s most striking is how clearly the Index shows us that combatting inequality isn’t about being the wealthiest country or the one of the biggest economies. It’s about having the political will to pass and put into practice the policies that will narrow the gap between the ultra-rich and the poor. This index clearly lets us see who’s doing that and who’s not.”

Winnie Byanyima, Oxfam International’s executive director, said: “Simply put, inequality traps people in poverty. We see babies dying from preventable diseases in countries where healthcare budgets are starved for funding, while billions of dollars owed by the richest are lost to tax dodging We’ve heard from women living on poverty wages and facing hunger, seeing none of the wealth they create.”

“None of this is inevitable. Governments often act like they’re committed to fighting poverty and tackling inequality—this Index shows us if their actions match their promises,” said she.