20 Jan 2014

Wealth gap economic threat - forum

9:51 am on 20 January 2014

A Swiss-based non-profit organisation says the widening gap between rich and poor is the biggest threat to the global economy over the next decade.

The World Economic Forum holds its annual meeting in the Swiss resort town of Davos later this week, which will draw more than 2,500 political, business, and academic leaders, including Finance Minister Bill English.

Bill English says job creation the key to more equality.

Bill English says job creation the key to more equality. Photo: RNZ

The gathering of the world's elite at Davos does not set policy, but it is influential in getting decision makers together to find common ground on the big issues of the day.

Economist Neville Bennett says they need to address rising inequality if they're serious about discussing how the world economy will be run in the future.

While Mr English says creating jobs is the answer, which is happening in New Zealand.

Meanwhile, the Council of Trade Unions says it is important that workers get their fair share of the economic pie, after missing out in recent years.

ACTU economist Bill Rosenberg says the expanding New Zealand economy has not meant the benefits have been shared equally, and that needs to change.

"The fruits of the economy have gone to relatively few, rather than being spread around and the government has to think about how it will change its policies to make sure that the income from the economy actually goes to people in the bottom half of the economy."