I had the opportunity to listen to Paul Krugman last week. He gave the keynote speech in a conference on inequality in Brussels. Theme of the conference: No prosperity for all in Europe if we do not tackle inequality. Underlying message: inequality is hindering growth and the distribution of wealth.

Krugman was there to debunk some of the myths. No, there is no shred of evidence that inequality promotes growth, as some neoliberals continue to say. But there is only little evidence that inequality hinders growth. What it is all about is the political economy, the concentration of wealth. We have a lot of evidence that there is a close link between inequality and politics.

The wealthy have become very powerful, they are the ones who promoted financial deregulation, they are the ones promoting so-called free trade agreements, they are the ones blocking all reasonable legislation that could help to improve the social situation in this world.

All economists know that the ‘expansionary austerity’ policies of the European Commission are totally wrong, they know that a return to ‘traditional economics’ (‘Samuelson’s handbook’) would be the easiest way to get back on track, but the ones who fear this are the 1 %. They have captured our states and governments and international organisations. Political systems are frozen. Caring for the rich is the only remaining alternative. States do not care for people anymore.

This very important message cannot be repeated often enough.

When the World Bank introduced poverty reduction policies in 1990, inequality was not seen as a problem. Poverty reduction was proposed as an alternative to costly and inequality reducing welfare states. When evidence was growing that inequality was growing as well, the World Bank published its World Development Report on ‘equity’, carefully avoiding to speak about income inequality. Even poverty was not linked to an income deficit. All that was needed to eradicate poverty was growth.

But then the UN discovered inequality as well and started to publish very interesting reports.

In the end, neoliberals started to admit that yes, inequality was a problem, but only to the extent that it hindered growth. In no way should there be redistribution policies or welfare states that would hinder growth even more.

And so this became the new mantra: enough inequality to promote growth, reduction of  inequality when it hinders growth. The economy was safe. Markets could flourish.

This is exactly the way some international organisations are now promoting social protection: just enough to promote growth, productivity and stability, not enough to reduce inequality and give people economic and social stability.

Poverty and inequality are political problems. As long as we do not tackle the wealth of the 1 %, not one single serious problem in this world will be solved. As long as the 1 % can hide its wealth in tax havens and ‘legal fraud’, not one single step in favour of the people can be made.

To-day, welfare states are being dismantled, trade unions are weakened, states are captured … it is time to wake up and fight back. Not with measures that strengthen the neoliberal ideology, but with demands that hinders its development: reclaiming the state, redistribution and solidarity.

Unfortunately, the lines between progressive and neoliberal proposals are often blurred, some people say there is no difference between left and right anymore, they promote citizen’s solidarity without rights, they delegitimize the State and even welfare states. And what is most in danger at this very moment is society itself, the integration idea is being replaced by ‘cohesion’ which is all too soft and weak. It is about so much more than avoiding conflict, it is about living together.

This is the main reason why Global Social Justice is firmly behind all proposals to introduce a real universal and transformative social protection in all countries and to preserve an reform the welfare states in wealthy countries. In is the only way to reform the State and make it accountable, imply citizens in a participative and democratic way and to foster solidarity. And include environmental concerns.

 We hope you share our ambition.