Inequality is certainly inevitable, but it manifests at different rates from one region of the world to another: while Europe remains the most egalitarian continent, North America, China, India, and Russia are experiencing increasingly glaring inequalities.

The Gold Medal for Income Inequality Goes to the United States and Canada !

A report from the World Inequality Lab published in 2018 presents a damning assessment of global inequalities. It shows growing income and wealth disparities worldwide since 1980.

Using an innovative methodology that compiles a database of all available information (income and wealth from national accounts), the authors provide a stark overview: income inequality has increased in all regions of the world over recent decades, but at different rates.

The share of national income going to the top 10% of earners is 37 % in Europe, 41 % in China, and 46% in Russia. The gold medal for inequality within developed countries goes to the United States and Canada.

Since 1980, income inequality has rapidly increased in North America (the United States), China, India, and Russia, while it remains relatively moderate in Europe.

Middle East, Sub-Saharan Africa, and Brazil : Inequal in the Past, inequal today

As for the Middle Eastern countries, sub-Saharan Africa, and Brazil, income inequalities have (seemingly) remained relatively stable. This apparent stability in inequality is actually due to the fact that these three regions have never experienced an egalitarian growth regime. Inequal they were yesterday, inequal they remain today.

1% of the Rich Captured 27 % of Global Growth

How do global inequalities look ? Thanks to the strong growth in Asia (India and China), half of the world’s population has seen their income increase. However, a closer look reveals :

• The top 1% captured 27 % of the cumulative global growth since the early 1980s,
• While the poorest 50 % captured barely 12 %.
• Between these two extremes are the so-called middle classes, which have become impoverished globally.

Certainly, the report highlights from the outset how inequality is a complex, multidimensional, and to some extent, inevitable phenomenon. “Nevertheless, we are convinced,” say the authors, “that if the worsening of inequalities is not effectively monitored and addressed, it could lead to all sorts of political, economic, and social catastrophes.”

To combat global inequalities, Break Poverty is involved in several action programs :

• Support for early childhood
• Prevention of school dropout
• Access to first employment
• Support for mothers