Approach to Reduction of Socioeconomic Inequality: Decrease of Vulnerability and Strengthening Resilience

Abstract

IntroductionIn recent years, the world has become increasingly aware of the impact of socioeconomic inequality on the quality of human potential. It is argued that inequality not only hampers economic growth and reduces the quality of life, but also declines the quality of human capital, i.e., beyond a certain critical threshold it impedes human development as such. Inequality increases insecurity and of an individual, society and country. According to Stiglitz, the research by the World Bank has shown that for individuals the following two problems are vital - insecurity and vulnerability. Vulnerability is perceived as the threat of a drop in the standard of living, which is a particularly worrying phenomenon if there is a risk that living standards will drop down to deprivation. The traditional one-sided aspirations of economists related to GDP growth have driven the focus away from the issue of vulnerability.One of the factors that makes the greatest contribution to the increase of is socioeconomic inequality, when the poor are incapable of overcoming life's difficulties. We have to think of inequality not as a moral issue, but as an economic challenge, closely linked, firstly, to economic growth and, secondly, to the increase of vulnerability (Human Development Report 2014, Stiglitz). Gender inequality is also important issue (Kiausiene, Streimikiene, 2013; Streimikene, Kiausiene, 2012; Fernandez-Guadano, 2015; Vveinhardt, Andriukaitiene, 2015).Progress in the fields of technology, education and income offers to inhabitants a promise of a long, healthy and secure life. However, presently quality of population life, country's economic environment, and international situation only strengthen individuals' sense of insecurity and instability (Delibasic, 2016; Ciegis et al., 2015; Streimikiene et al., 2011; Draskovic and Draskovic, 2012; Draskovic, 2010; Osipov, 2012; Polterovich, 2012). In implementing the project Social economic inequality: factors, consequences to quality of life and methods of reduction under GER15055 of the Council of Science of Lithuania, the quality of life studies conducted at Mykolas Romeris University Laboratory (MRU LAB) in 2016 showed that in recent years the largest concerns for more than 80.0% of Lithuanian population are the threats increasing individual (unemployment, fall in the standards of living, threat of income loss, rising inequality, decline in moral and ethical values, ineffective economic policy etc.). Trends of migration also reflect insecurity and of people (Bilan, 2014; Bilan, 2012).The 2014 UNDP Development Report: Sustaining Human Progress: Reducing Vulnerabilities and Building Resilience stresses that real progress on human development is not only a matter of enlarging people's critical choices and their ability to be educated, be healthy, have a reasonable standard of living and feel safe. It is also a matter of how secure these achievements are and whether conditions are sufficient for sustained human development. An account of progress in human development is incomplete without exploring and assessing vulnerability.The following foreign researchers have analysed the issues of and resilience (or hardiness) and proposed assessment methodologies and comparative analyses by various composite indicators: M. Gall, J. Birkmann, I. Schauser, E. Tate, B. Beccari, B. Khazai, C. Easter, C. Pfefferbaum, L. Rose, etc. The question is, why some individuals are more resilient to life's difficulties and achieve more than others? The main point here is individual endurance, the ability to withstand the trials of life, which ensures sound choices, stability, both now and in future, and allows better coping with difficulties and adapting to them.At different stages of their life cycle, individuals are exposed to different levels of insecurity and various forms of vulnerability. …