By Lee Hana
Photos = Oxfam CRI Index 2018

Korea has been picked as the country that made the most positive policy moves to reduce inequality since last year.

On Oct. 9, Oxfam and Development Finance International (DFI) published its Commitment to Reducing Inequality (CRI) Index 2018, a global ranking of 157 governments based on what they are doing to bridge the gap between the rich and the poor. According to the report, "the most positive story this year is from South Korea."

The CRI Index assesses countries on their policy performance in social spending, progressive taxation and labor rights, to provide a monitoring framework that can help identify weaknesses and best practices in governments' efforts to reduce income gaps.

The 2018 report was released following a beta version released in 2017.



The CRI Index gave Korea an overall rank of 56 out of 157 governments assessed, indicating moderate performance. Despite this, the report highlighted the fact that "Korea has taken big steps forward since President Moon took office in 2017, and acted in all three areas measured by the Index."

In particular, the report noted that "the president has committed to dramatically increasing the minimum wage and in his first year in office has delivered, increasing it by 16.4 percent." It also pointed to the increase in corporate income tax, from 22 percent to 25 percent, an increase in income tax for the highest earners, higher spending for a universal child support grant, as significant efforts for inclusive growth.

Moreover, the report reiterated an address to the UN General Assembly on Sept. 21, 2017, made by President Moon, which stated: "As of now, my Administration is pursuing bold measures to change the economic paradigm in order to deal with economic inequalities that stand in the way of growth and social cohesion...This is what we call a 'people-centered economy."

hlee10@korea.kr