Closing the Wealth Divide: Expert Insights on Economic Equity
EDAS Chair Neil McInroy was joined by a leading panel of experts including Peter Kelly, Director at The Poverty Alliance, Stephen Boyd, Director IPPR Scotland, and Marjorie Kelly, Distinguished Senior Fellow at The Democracy Collaborative, for an engaging discussion on wealth distribution and economic development in Scotland.
The second event in the new EDAS ‘Let’s Talk About…’ series shone a spotlight on levels of poverty in Scotland and the role economic development can play in reducing wealth inequality.
Neil McInroy was candid about the realities of global wealth disparity, highlighting that the bottom half of the UK’s population holds just 5% of the total wealth. In contrast, the top 10% makes up 57%. This striking statistic prompted important questions about fairness and equity.
Marjorie Kelly introduced the concept of ‘wealth supremacy,’ saying: “There is too much financial wealth in our world in too few hands.” She discussed the dangers of financialisation, which concentrates wealth among a select few, ultimately leading to an extractive economy.
Peter Kelly shared his expertise on wealth inequality, shedding light on increasing poverty levels in Scotland. He linked these issues to wealth concentration and rising dependence on emergency food aid. “We need to challenge the popular understanding of wealth and the notion that we live in a meritocratic society,” he said, adding that this belief underpins the acceptability of extreme wealth disparities.
When asked about fostering democratic change in the financial sector, Marjorie Kelly stressed the need for voluntary change. She highlighted the growing movement of impact investors and suggested that rethinking fiduciary duties to incorporate social and ecological factors in investments is essential. “Publicly owned banks could play an important role,” she noted, advocating for institutions focused on community development.
Panellists asserted that traditional economic policies often prioritise growth over equitable wealth distribution.
Stephen Boyd captured this sentiment stating, “We can broaden, extend, and improve public ownership across the economy.” He referenced recent initiatives, such as the Labour UK Government’s proposal to establish GB Energy (based in Aberdeen), indicating that while aspirations are high, significant work remains to be done.
The speakers stressed the importance of community engagement in shaping policies, promoting a bottom-up approach rather than top-down legislation.
The event also highlighted the urgent need to incorporate social and ecological considerations into investment decisions and advance impact investing.
As the session concluded, there was a strong commitment to ongoing discussions about economic policy, community involvement, and the financial sector’s role in driving social change.
EDAS, which has more than 3,250 members, is the country’s foremost membership association for organisations and people with an interest in economic development, widely recognised by policymakers and politicians as the sector’s go-to body.
The next event in the ‘Let’s Talk About..’ series will focus on The Wellbeing Economy- details can be found here.
You can listen to our Talking EDAS podcast episode with Peter Kelly here.