Inequality Reduction

OVERVIEW

What is it?

Addressing Income Inequalities through Development Cooperation (Reference Document No. 29) reflects the European Union's commitment to addressing income inequalities in its partner countries. it focuses primarily on income inequality, exploring effective policy responses and offering practical guidance on how to tackle inequality through development cooperation.
In addition, the guidelines also provide tools and insights for preventing and reducing socio-economic inequalities across a range of relevant policy areas, making it applicable beyond narrowly defined income-related issues.
The guidance is structured into three complementary volumes:
Volume 1 – Concept and Definition: This volume offers a theoretical framework for understanding inequality, its root causes, and the various dimensions and indicators used to assess it.
Volume 2 – Policy Brief on Tackling Inequality: It summarises the evidence on the impact of inequality, both socially and economically, and presents key policy considerations for effective action.
Volume 3 – Methodology Guidance: This volume provides operational guidance to help EU staff to mainstream inequality considerations into policy dialogue and intervention design. It also supports engagement with national authorities, local stakeholders, and civil society actors in partner countries to ensure that tackling inequality becomes a shared development priority.

What can it be used for?

EU staff can use the methodology to maximise the inequality-reduction impact of their operations, by mainstreaming a series of guiding principles and supporting policy measures having the potential to reduce inequality in partner countries.

When can it be used?

At any stage of the Intervention Cycle Management, as the guide provides guidance related to programming, policy dialogue, intervention formulation, monitoring, evaluation etc.

Who can use it?

EU staff and other development practitioners.

What are its strengths?

The reference document presents in a clear and accessible manner what inequality is, why it should be central to development cooperation interventions, and how to mainstream it across all aspects of EU external action. It provides both conceptual clarity and operational guidance, making it a valuable tool for EU staff and partners involved in addressing inequality.
The 18 policy briefs included in Volume 2 have been developed in close collaboration with all thematic units, ensuring they accurately reflect the position of DG INTPA on a wide range of policy areas and their linkages with inequality reduction. These briefs offer thematic insights and concrete recommendations for integrating equity and inclusiveness into diverse development sectors.
Volume 3 stands out as a practical mainstreaming guide, providing EU officials with a robust set of hands-on tools to enhance their work on inequality across both policy dialogue and development cooperation operations. It facilitates meaningful engagement with national authorities and local actors in partner countries, supporting efforts to position inequality reduction as a shared development objective and a priority at both national and local levels.

What are its limitations?

The applicability of proposed approaches may vary by context, requiring adaptation and additional support. Moreover, effective use of the methodology often demands significant resources and capacities, which may be limited in some settings. Lastly, while indicator guidance is provided, translating it into measurable outcomes remains a challenge, especially in fragile or data-poor environments.

PRACTICAL APPLICATION

Key elements

The EU intervention cycle provides several entry points where the reduction of inequality can be mainstreamed:

1. In design phase, when conducting context analysis on inequality, its drivers and determinants;
2. In policy dialogue, raising inequality awareness in policy dialogue and keeping the dialogue alive;
3. At different stages of implementation, e.g. during monitoring and evaluation

REQUIREMENTS

Data/information.  N.A.

Time.  N.A.

Skills. N.A.

Facilities and materials.  N.A.

Financial costs and sources.  N.A.

Tips and tricks.

EU RESOURCES

• The European Commission, 2023. Addressing income inequalities through development cooperation - Quick Guide
• The European Commission, 2023.  The European Commission inequality marker guidelines for the application and scoring of intervention
• The European commission, 2023. (Video) The Inequality Marker (EN, ES, FR)
• The European Commission, 2023. The European Commission inequality marker guidelines for the application and scoring of intervention - One Pager
• The European Commission, 2021. Tools and Methods Series, Reference Document N° 29, Addressing income inequalities through development cooperation. Volume 1, Concepts and definitions
• The European Commisssion, 2021. Tools and Methods Series, Reference Document N° 29, Lutter contre les inégalités de revenus grâce à la coopération au développement. Volume 1, Concepts et définitions
• The European Commission, 2023. Inequality Marker – Complementary Guidelines: Application of the I-Marker to SSC fiches and Action Documents

For further information, any revision or comment, please contact INTPA-ICM-GUIDE@ec.europa.eu
Published by INTPA.D.4 - Quality and results, evaluation, knowledge management. Last update  May 2025