MITIGATING WORLDWIDE SOCIO-ECONOMIC DISPARITIES THROUGH SUSTAINABLE FINANCIAL GOVERNANCE AND ADAPTIVE POLICY FRAMEWORKS

Abstract

The global socio-economic inequalities are one of the most burning issues of the twenty-first century, and real-time data indicate the growth of the disparities in income distribution, unequal access to basic welfare, as well as the growing susceptibility to compound shocks, such as pandemics, climate crises, debt disasters, and geopolitical wars. According to recent statistics of international organisations, the progress of poverty reduction remained stagnant in 2019, and indicators of inequality, like the Gini index, have increased over the past years in various regions, demonstrating the weakness of traditional financial governance systems based on stagnant policies, slow data collection, and top-down fiscal responses. The proposed solution to this issue is Adaptive Sustainable Finance and Policy Mesh (ASFiPM) a novel governance architecture combining real time data ingestion, predictive analytics policy design with reinforcement learning and human-in-the-loop control. In contrast to current methodologies, ASFiPM directly optimises distributional results, i.e., headcount reduction of poverty and equity gains, and provides macroeconomic stability through both fiscal protection and sustainable financing tools. The system uses high-frequency streams of data, such as satellite night-lights, mobile money transfer data, price trackers on commodities, debt-service ratio, and rolling household surveys, to constantly approximate the state of the socio-economic status. These estimates are then input into an adaptive policy engine that then dynamically compiles specific interventions such as conditional transfers, temporary tax waivers, resilience bond-related bonds and countercyclical fiscal bailouts and provides transparency through blockchain-based audit logs and public dashboards. The results of simulation experiments conducted across a wide range of different economies confirm that ASFiPM can achieve a substantial decrease in exposure to poverty and comparable positive changes in the Gini index,, even in financially limited settings. It is more responsive and equitable than traditional policy models. Finally, the framework outlines a scalable, transparent, responsive, and inclusive channel through which global socio-economic inequalities can be mitigated, providing policymakers with a repeatable template to achieve sustainable development objectives while developing resilience in a more uncertain global economy.