1.2.3 Global income inequality
The United Nations report, ‘Inequality Matters: Report of the World Social Situation’ (UN, 2013) provides evidence, analysis and comment with regard to the position of global inequality, after the global and financial crisis of 2008. As with all data, remember to read with a critical eye and remember that all empirical evidence is selective and incomplete. As you look at some of the findings of the report, remember what you learned in 1.2.1 Poverty about the Gini co-efficient index that is an indicator of inequality across the whole of society.
One way of showing trends within international inequality is to chart each country’s per capita GDP. In Figure 5, the unweighted line shows international income inequality increasing sharply between 1980 and 2000 but then slowly decreasing.
The graph also shows data obtained by weighting each national GDP per capita by each country’s population, to account for the fact that China’ economic growth, for example, will have affected more people than growth in a smaller country. Again, excluding China, the data shows inequality rising between 1980 and 2000. But since 2000 a decline in international income inequality has been observable. Stronger economic growth in all major developing regions, Asia, Africa and Latin America, have contributed to this trend (UN 2013).
From a global perspective, there is a reduction in global income inequality overall.
The rapid economic growth in Asia in the last 20 years, in China, India and some other nations, has lifted millions out of absolute poverty. We will look more closely at this remarkable phenomenon in Week 4 and we will hear from some families who have experienced this first hand. But it is also clear that the problem of income and wealth inequality is becoming more acute within individual countries, and that this has a serious impact on well-being, economic growth, social cohesion and social mobility. The lottery of birth that means individuals are affected by inequalities.
It will come as no surprise that we live in an unequal world, particularly in relation to life expectancy, health, income and education but the availability of detailed data from around the world means we can see this in more detail than ever before.
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In the next section, you’ll look at health and educational inequalities.