Background

The Poverty Group at UNDP is initiating the preparation of a report on “Inequality in Developing Countries” (with a target publication date of Sept 2013). The objective of the report is to support the substantive discussions on a Post 2015 development agenda.

The report will review the different conceptual approaches to inequality addressing questions such as inequality of what and inequality between whom.

The first chapter will discuss recent analytical approaches with respect to the inequality of opportunity versus inequality of outcomes, and measurement issues.

The second chapter will focus on a discussion of the “instrumental” and intrinsic reasons why inequality is important. Is reducing inequality an important development objective in and of itself (issues of social justice and fairness)? Or is inequality important because it can influence the growth impact on poverty or because rising inequality may itself inhibit growth through different channels? The latter refers to the recent literature on inclusive growth, inequality and poverty, where inequality is instrumental for reducing poverty (see McKinley 2009).

The third chapter will provide a detailed analysis of trends in inequality since 1995. It will examine trends in income inequality by region -- where income inequality is in effect a measure of the inequality of outcome. It will also provide a detailed analysis of the trends in inequality of health and education by region along different dimensions (a) gender (b) wealth (c) spatial.

The fourth chapter will explore the factors that explain the differentiated trends in inequality across developing regions. What is the role of underlying economic fundamentals (such as changes in technology, global integration, etc.) in explaining these differentiated trends? What is the role of policies (such as CCTs, progressive taxation, labour market institutions, etc.) in explaining these different trends? What can we learn from these trends?

The fifth chapter will look beyond the inequality trends analyzed in chapter 3 and 4, and will focus on particular disadvantages facing women and girls. It will look at gender gaps in assets, wages and access to decent employment, among other systemic gender differentials.

Chapter 6 will provide the results of a survey of policy-makers from developing countries on their perceptions and attitudes towards inequality. The survey will assess how important is inequality for policy makers, how the level of concern among policymakers has changed in recent times, if they think inequality has an impact on poverty, what do they think are the causes for observed trends, what policies work for inequality reduction, etc.

The final chapter will focus on policies necessary to combat rising inequality in developing countries, based on the analysis of the previous chapters.

Duties and Responsibilities

Objective:

We are looking for 5 consultants to develop chapters 2-6 of the above described report.

Specific Deliverables:

The selected consultants will be responsible for:
  • Preparing a brief note delineating the methodology to be used in the chapter they will develop and expand on the research questions in the report Concept Note, which will be discussed with the project administrators and expert group. Timeline: November 5th, 2012.
  • Prepare a final draft chapter by March 30th, 2013 for comments to project administrators and expert group.
  • Review and provide comments to other chapters of the report.
  • Convene for writer’s group meeting in London, April 2013.
  • Incorporate comments and suggestions and finalize the report by June 30th, 2013.
  • The chapter should include a detailed bibliography and relevant technical/statistical annexes.
Time frame:

The project will be conducted between November 1st, 2012 and June 30th, 2013.
 
Payment:

The payment will be based on a lump sum rate and shall be made in four instalments, in the following manner:
  • First tranche (25%): After methodological note is reviewed and approved;
  • Second tranche (25%): After draft of the chapter is delivered;
  • Third tranche (25%): After expert group's comments have been incorporated;
  • Fourth Tranche (25%): After editor's comments are addressed.
The research and presentation of findings of the work should be written in English in simple language that can be read by non-technical readers without sacrificing rigorous analysis. The report should be relevant to policy makers and provide suggestions on issues that require further policy relevant research.

Reporting:

The consultant shall report to Anuradha Seth (Policy Advisor PG/BDP).

Competencies

  • Solid analytical background on issues of inequality in developing countries.
  • Strong familiarity with inequality literature and concepts.
  • Strong research and writing experience on topics relating inequality.
  • Ability to work closely with UNDP and to meet deadlines
  • Strong experience working with data analysis.  

Required Skills and Experience

Education:
  • PHD in Economics, or relevant field.
Experience:
  • A minimum of 10 years of relevant experience, including direct experience in research on developing countries.
Language Requirements:
  • Proficiency in English.