When families struggle to meet basic needs, children face increased risks of malnutrition, poor health outcomes, reduced educational attainment, and restricted social mobility.

Global inequalities have continued to widen in recent years, driven by persistent income and wealth disparities, unequal access to essential services, and the uneven impacts of global crises. Inequalities extend beyond income, affecting access to education, healthcare, digital connectivity, and opportunities for social mobility, reinforcing intergenerational cycles of disadvantage. Currently, the majority of the world population lives in in countries where income inequality has increased in the last three decades with inequalities based on age, gender, race, ethnicity, migrant status and disability widespread in developed and developing countries alike, reducing opportunities for social development and undermining global efforts to achieve the 2030 Agenda for Sustainable Development. Technological innovation, climate change and other megatrends have had broad and varied implications often resulting in growing inequalities. Around the world, families experience profound transformations driven largely by megatrends and growing inequalities constraining their ability to adequately provide for their members. Economic inequality shapes family formation by influencing when and how households form, how many children they have, and how resources are allocated within households impacting the conditions under which children are raised. Without adequate support, the addition of children in households often increases the likelihood that households fall below the poverty line, reinforcing intergenerational disadvantage. Importantly, child development outcomes cannot be addressed or improved without addressing the family context in which children are born and raised. Family formation decisions, under what economic conditions, and with what level of institutional support, shape patterns of poverty, inequality, productivity and dependency, and human capital formation over time. Children born into households facing income instability, weak caregiving support, and limited access to services are more likely to experience developmental setbacks that persist into adulthood. Research shows that family structure can amplify economic inequality across generations because parental investments in children often reinforce existing disparities, limiting mobility for those from disadvantaged backgrounds. Families with young children often face the highest risks of falling behind economically due to childcare responsibilities, limited access to decent work, and insufficient social protection measures. When families struggle to meet basic needs, children face increased risks of malnutrition, poor health outcomes, reduced educational attainment, and restricted social mobility. Moreover, the environments in which children grow—family relationships, access to learning, safety, and emotional support—shape early childhood development and long-term outcomes. However, inequalities in income, housing, digital access, and family support services systematically disadvantage certain groups. Children in low-income households, migrant families, single-parent households, or families living in informal settlements are especially vulnerable. In addition, inequalities rooted in gender, race, and social identity create additional burdens for families, particularly those facing intersecting disadvantages. Gender-based disparities, such as unequal workloads or limited access to education and jobs, heighten stress within families and reduce overall wellbeing. Racial and ethnic inequalities similarly restrict access to housing, healthcare, and employment, contributing to chronic marginalization that affects family stability and children's long-term outcomes. Persistent inequality also fuels cycles of limited social mobility, leaving families trapped in disadvantage across generations. Research links inequality to wasted human potential, inefficient allocation of resources, and the formation of institutions that perpetuate unequal opportunities. These systemic barriers prevent families from improving their circumstances and improving their wellbeing. Despite its importance, spending on the youngest children remains low, family policies are fragmented, and early intervention is often treated as discretionary in most low and middle-income countries