Global Inequality Article
It is a global phenomenon: since the 1980s, the richest are getting richer while the poorest and the middle classes are getting poorer. An inequality that is certainly inevitable, but which operates at different rates from one region of the world to another: if Europe remains the most egalitarian continent, North America, China, India and Russia is experiencing increasingly glaring inequalities.
THE GOLDEN PALM FOR INCOME INEQUALITIES IN THE UNITED STATES AND CANADA!
A World Inequality Lab report released in 2018 presents a damning record in the 2018 Global Inequality Report. It shows growing disparities in income and wealth around the world since 1980.
On the basis of an innovative methodology which brings together a database of all available information (income and assets from national accounts), the authors draw up a clear inventory: income inequalities have increased in all regions of the country. world in recent decades, but at different rates.
The share of national income going to only the top 10% is 37% in Europe, 41% in China, 46% in Russia. The gold palm for inequalities within developed countries goes to the group including the United States and Canada.
If since 1980, income inequalities have increased rapidly in North America (United States), China, India and Russia, they remain rather moderate in Europe.
MIDDLE EAST, SUB-SAHARAN AFRICA AND BRAZIL: UNEQUAL YESTERDAY, STILL UNEQUAL
As for the countries of the Middle East, sub-Saharan Africa and Brazil, income inequalities have (in appearance only) remained relatively stable. And for good reason: this situation of apparent stability of inequalities is actually explained by the simple fact that these three regions of the world have never experienced an egalitarian growth regime. In-egalitarian they were yesterday, in-egalitarian they remain today.
1% OF THE RICHEST CAPTURED 27% OF GLOBAL GROWTH
How do global inequalities behave? Thanks to the strong growth of Asia (India and China), half of the world’s population has seen their income increase. But to take a closer look:
- The richest 1% have captured 27% of the cumulative global growth since the early 1980s,
- while the poorest 50% received barely 12%.
- Between these two extremes, there are the so-called middle classes which, at the global level, have become impoverished.
Of course, the report underlines from the very first lines how complex and multidimensional inequality is, and to some extent inevitable. “Nonetheless, we are convinced,” say the authors, “that if worsening inequalities are not effectively monitored and remedied, it could lead to all kinds of political, economic and social catastrophes.
To fight against inequalities in the world, the organization/foundations should act on several action programs :
- Early childhood support
- School dropout prevention
- Access to first job