Income inequality has rapidly increased: Report

The rise of global inequality has not been steady, said the World Inequality Report

GN Bureau | December 15, 2017


#Inequality   #Income   #Economy  
Representational image
Representational image

The rise in income inequality has been gradual in India, said the World Inequality Report which noted that at the global level, inequality has risen sharply since 1980, despite strong growth in China.

The report said that inequality within world regions varies greatly. In 2016, the share of total national income accounted for by just that nation’s top 10% earners (top 10% income share) was 37% in Europe, 41% in China, 46% in Russia, 47% in US-Canada, and around 55%  in sub-Saharan Africa, Brazil, and India. In the Middle East, the world’s most unequal region according to our estimates, the top 10% capture 61% of national income.


“Since 1980, income inequality has increased rapidly in North America, China, India, and Russia. Inequality has grown moderately in Europe. From a broad historical perspective, this increase in inequality marks the end of a postwar egalitarian regime which took different forms in these regions,” it said.


The rise in inequality was particularly abrupt in Russia, moderate in China, and relatively gradual in India, reflecting different types of deregulation and opening-up policies pursued over the past decades in these countries, added the report.

At the global level, inequality has risen sharply since 1980, despite strong growth in China. The poorest half of the global population has seen its income grow significantly thanks to high growth in Asia (particularly in China and India). However, because of high and rising inequality within countries, the top 1% richest individuals in the world captured twice as much growth as the bottom 50% individuals since 1980

The rise of global inequality has not been steady. While the global top 1% income share increased from 16% in 1980 to 22% in 2000, it declined slightly thereafter to 20%. The income share of the global bottom 50% has oscillated around 9% since 1980. The trend break after 2000 is due to a reduction in between-country average income inequality, as within-country inequality has continued to increase.

Read the World Inequality Report 2018
 

Comments

 

Other News

Banks not adhering to RBI guidelines, finds study

Banks across India are levying inconsistent service charges on basic savings accounts. A study, “Benchmarking Reasonableness of Service Charges by Banks in India”, uncovers and exposes inconsistencies in adherence to RBI mandates by banks. It finds some banks impose charges exceeding reasonable

“Mumbai Infra boom similar to that of Manhattan in 19th C”

Mumbai’s ongoing infrastructure boom – with a new coastal road, Atal Setu, metro lines and much more – creating transport corridors – is comparable to that of Manhattan in New York during 1811-1870, according to BMC commissioner Bhushan Gagrani. The iconic projects being implemented

Global Gandhi: How the Mahatma captured the world’s imagination

Gandhi’s Australia, Australia’s Gandhi By Thomas Weber Orient BlackSwan, 348 pages, Rs 1,800  

Urban apathy in Mumbai, Maharashtra sees 49% voting

Polling in the fifth phase of General Elections 2024 which commenced at 7 am on Monday simultaneously across 49 PCs recorded an approximate voter turnout of 57.47% as of 7:45 pm. Voters came out in large numbers braving hot weather in many parts of the states that went for polls on Monday.

Voter turnout: Drop from 2019 reduces further

As the voting percentages dropped drastically in the first couple of phases of the ongoing general elections, observers and analysts spoke of ‘voter apathy’ blamed it on a lack of “wave” this time – apart from the heatwave, that is. The latest figures after the fourth phase, h

GAIL reports annual revenue of Rs.1,30,638 crore

GAIL (INDIA) Limited has reported 75% increase in Profit before Tax (PBT) of Rs.11,555 crore in FY24,  as against Rs 6,584 Cr in FY23. Profit after Tax (PAT) in FY24 stands at Rs. 8,836 Cr as against Rs.5,302 Cr in FY23, a 67 % increase. However, revenue from operations registered a fa

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter