ECONOMIC INEQUALITY ACROSS

THE WORLD

BY

ANIRUDH 19BPS1059
CHINMAI 19BPS1021
APURV 19BPS1012
MITHUN 19BPS1092
ARUSH 19BPS1094
LOKESH 19BPS1120
Income inequality is an extreme concentration of wealth or income in
the hands of a small percentage of a population. It has been
described as the gap between the richest and the rest.

The world’s wealthiest individuals, those owning over $100,000 in

assets, total less than 10 percent of the global population but own 84
percent of global wealth.
 Causes of Economic
Inequality

Wages are Education builds

directly skill. The poor do
proportional to LABOR EDUCATION not get proper
the available skill education and
of labor in the are unskilled.
market
Workers need to TECHNOLOGY OTHERS Gender and
be updated with other factors
new technology such as family
in workspace. wealth also play
When unskilled, a part
this poses a
problem.
 Causes of Economic
Inequality

Wages are Education builds

directly skill. The poor do
proportional to LABOR EDUCATION not get proper
the available skill education and
of labor in the are unskilled.
market
Workers need to TECHNOLOGY OTHERS Gender and
be updated with other factors
new technology such as family
in workspace. wealth also play
When unskilled, a part
this poses a
problem.
 Causes of Economic
Inequality

Wages are Education builds

directly skill. The poor do
proportional to LABOR EDUCATION not get proper
the available skill education and
of labor in the are unskilled.
market
Workers need to TECHNOLOGY OTHERS Gender and
be updated with other factors
new technology such as family
in workspace. wealth also play
When unskilled, a part
this poses a
problem.
 Causes of Economic
Inequality

Wages are Education builds

directly skill. The poor do
proportional to LABOR EDUCATION not get proper
the available skill education and
of labor in the are unskilled.
market
Workers need to TECHNOLOGY OTHERS Gender and
be updated with other factors
new technology such as family
in workspace. wealth also play
When unskilled, a part
this poses a
problem.
 Causes of Economic
Inequality

Wages are Education builds

directly skill. The poor do
proportional to LABOR EDUCATION not get proper
the available skill education and
of labor in the are unskilled.
market
Workers need to TECHNOLOGY OTHERS Gender and
be updated with other factors
new technology such as family
in workspace. wealth also play
When unskilled, a part
this poses a
problem.
 Causes of Economic
Inequality

Wages are Education builds

directly skill. The poor do
proportional to LABOR EDUCATION not get proper
the available skill education and
of labor in the are unskilled.
market
Workers need to TECHNOLOGY OTHERS Gender and
be updated with other factors
new technology such as family
in workspace. wealth also play
When unskilled, a part
this poses a
problem.
 Consequences of
Economic Inequality
Fewer methods of Access to quality
lawfully obtaining health care and
resources are available healthy food is
for the increasing number sometimes limited
of poor who live in an CRIME HEALTH or unavailable for
unequal society. This poor individuals
promotes crime.
In an economically unequal
Political power tends society, the society-wide
to be in favor of that POLITICAL EDUCATION average level of education
small wealthy group INEQUALITY decreases while the
number of educational
elites increases.
 Consequences of
Economic Inequality
Fewer methods of Access to quality
lawfully obtaining health care and
resources are available healthy food is
for the increasing number sometimes limited
of poor who live in an CRIME HEALTH or unavailable for
unequal society. This poor individuals
promotes crime.
In an economically unequal
Political power tends society, the society-wide
to be in favor of that POLITICAL EDUCATION average level of education
small wealthy group INEQUALITY decreases while the
number of educational
elites increases.
 Consequences of
Economic Inequality
Fewer methods of Access to quality
lawfully obtaining health care and
resources are available healthy food is
for the increasing number sometimes limited
of poor who live in an CRIME HEALTH or unavailable for
unequal society. This poor individuals
promotes crime.
In an economically unequal
Political power tends society, the society-wide
to be in favor of that POLITICAL EDUCATION average level of education
small wealthy group INEQUALITY decreases while the
number of educational
elites increases.
 Consequences of
Economic Inequality
Fewer methods of Access to quality
lawfully obtaining health care and
resources are available healthy food is
for the increasing number sometimes limited
of poor who live in an CRIME HEALTH or unavailable for
unequal society. This poor individuals
promotes crime.
In an economically unequal
Political power tends society, the society-wide
to be in favor of that POLITICAL EDUCATION average level of education
small wealthy group INEQUALITY decreases while the
number of educational
elites increases.
 Consequences of
Economic Inequality
Fewer methods of Access to quality
lawfully obtaining health care and
resources are available healthy food is
for the increasing number sometimes limited
of poor who live in an CRIME HEALTH or unavailable for
unequal society. This poor individuals
promotes crime.
In an economically unequal
Political power tends society, the society-wide
to be in favor of that POLITICAL EDUCATION average level of education
small wealthy group INEQUALITY decreases while the
number of educational
elites increases.
 Consequences of
Economic Inequality
Fewer methods of Access to quality
lawfully obtaining health care and
resources are available healthy food is
for the increasing number sometimes limited
of poor who live in an CRIME HEALTH or unavailable for
unequal society. This poor individuals
promotes crime.
In an economically unequal
Political power tends society, the society-wide
to be in favor of that POLITICAL EDUCATION average level of education
small wealthy group INEQUALITY decreases while the
number of educational
elites increases.
Economic Inequality In
The Middle East
How bad is it ?

–The “World Inequality Report of 2018” ranks the Middle East as the leader in
income inequality.

–In the last 15 years the top 10% of the country enjoyed 60-66% of the region’s
income.

–In a region wracked by civil conflicts, sectarianism and religious extremism, the
danger posed by extreme inequality cannot be underestimated.

–These inequality levels are comparable to or higher than those observed in Brazil
and South Africa
Income shared by the top 10% in the Middle East
compared to Other countries
 Why does it exist??
– The origins of extreme inequality in these different countries are
different.

– In the Middle East, it is largely due to the geography of oil

ownership and the transformation of oil revenues into permanent
financial endowments.

– The disparate Urban-rural income gap plays a large role in skewed

income distribution, especially in countries like Egypt, Yemen and
Tunisia.

– Because rural communities are further away from commercial ports

and main markets, they have less access to imported commodities,
such as rice and wheat.
 ECONOMIC
INEQUALITY IN
INDIA
A LOOK AT INEQUALITY

– Inequality has been rising sharply for the last three

decades.
– The rich are getting richer at a much faster pace while
the poor are still struggling to earn a minimum wage
and access quality education , healthcare services and
other basic necessities.
– Inequality has risen substantially from the 1980s
onwards, following profound transformations in the
economy that centered on the implementation of
deregulation and opening-up reforms
 PROBLEMS CAUSED BY THE ECONOMIC
INEQUALITY IN INDIA?
– Class-conflict: It has created two sections in society the ‘haves’ and the
‘have-not’s which are ever on the war path. This has resulted in ever
mounting social tensions and political discontent
– Political Domination: The rich dominate the political machinery, and they
use it to promote their own exclusive interests. This results in corruption,
graft and social injustice.
– Exploitation: The rich exploit the poor. The consciousness of this
exploitation leads to political awakening and then agitation and even
political revolution. Thus inequality of incomes is an important cause of
social and political instability.
– Creation of Monopolies: Unequal distribution of wealth leads
to the creation of monopolies which try to implement unfair
trade practice and charge unfair price from the consumer.
– Unequal access to Healthcare And Education: The most unfair
of all would be unequal access to healthcare and education.
Due to privatization and de-regulation these institutes can
set their own prices which hurt the poor the most and deprive
them of these basic facilities.
Case Study:
African
Continent

With emphasis on South Africa

Debt in Africa
– An extremely large portion of African families have reported that they’re in debt,
with a debt-to-income percentage of 71.90 as of 2018
– In fact, North Africa is one of the highest in-debt countries in the world.
– The percentage of families in debt has been recorded, on the basis of number of
children per family.
– 27% of families with 1 child are in debt, while a whopping 41% of families with 4
children face debt.
– These numbers are extremely high. Coupled with the cost of living, these families
find it next to impossible to repay their loans to close their debt.
Extent of Economic Inequality

South Africa has the most unequal income distribution in the world with an
estimated Gini coefficient of 0.625 as of 2013, second only to Lesotho.
– This is in sharp contrast to Scandinavian countries, who’s Gini coefficient is 0.27
on average. Polls show that a large population in South Africa, India, and The UK
(amongst other countries) believe that policies of their country are deliberately
crafted to support the rich.
– The authors of an Oxfam paper noted that economic inequality is increasing
steadily in the majority of countries around the globe.
Effects on livelihood
– Illiteracy: more than 40% of Africa’s population cannot read or write, as a result of
high debt
– Of the top 20 most malnourished countries in the world, 19 of them are in Africa
– Due to the poor economy, there hasn’t been much investment in the agricultural
sector. Thus there is an unsustainable farming practice, and famines are a regular
occurrence.
– Since 15% of sub-Saharan Africa’s GDP comes from the 1st sector, this further
impacts the investment in agriculture, and leads to a vicious cycle
 WHY SHOULD PEOPLE CARE?

– People should care about income inequalities and the problems presented by it because it is the inherent
desire of society to see everyone starts from a similar economic background.
– The problems with Economic Inequality are large and varied but can summarised into the following self
explanatory points:-
1. Economic inequality can give wealthier people an unacceptable degree of control over the lives of
others.
2. Economic inequality can undermine the fairness of political institutions
3. Economic inequality undermines the fairness of the economic system itself.
4. Workers, as participants in a scheme of cooperation that produces national income, have a claim to a
fair share of what they have helped to produce.
Tackling economic
inequalities
THE PROBLEMS WE FACE AND THE WAYS TO OVERCOME THEM
Problems caused by income
inequality
– Extreme economic inequality is extremely corrosive to our societies.
– It makes poverty reduction harder,
– It hurts our economies in the long run
– Drives conflict and violence due to lack of resources among the large population.
– Reversing this trend presents a significant challenge, but one where we’ve seen
some progress both globally, and in the above mentioned case studies .
– Below we offer five ways to move the world forward in reducing global
inequality.
 CONCLUSION

– Global inequality as we have seen so far is one of the biggest problems we are facing in our
time and the fact that it is getting worse doesn’t really brighten our hopes for a better
future.
– However ,due to increased awareness among both governments and the people, the topic
is now getting more mainstream attention and solutions are being found.
– Although some may argue that capitalism inherently has inequality built into itself and that
it is a zero sum game where there is a pie and for someone to eat a bigger slice of it,
someone else has to eat a smaller share of it, we would like to argue that our system is in
fact a positive sum game, where we could instead increase the size of the pie and make
sure that everyone gets a bigger slice of it especially the ones who need it the most.
 BIBLIOGRAPHY

• oxfamblogs.org
• World Inequality Report 2018
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• borgenproject.org
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• Weforum.com
• indiatimes.com
• Oxfamindia.com
• thehindubusinessline.com • sevenpillarinstitute.org
• economicsdiscussion.net
• weforum.org
 BIBLIOGRAPHY

– online.norwich.edu
– huffingtonpost.ca
– publicpolicy.wharton.upenn.edu
– haasinstitute.berkeley.edu
– web.archive.org
– pdfs.semanticscholar.org
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THANK YOU