Inequality is a predominant issue on the global development agenda. It refers to the unjust distribution of resources and opportunities among members of a given society based on the factors that relate to power, religion, race, gender, or social class. The most symbolic example of inequality is the fact that the world’s richest 1% own 43.4% of the world’s wealth while the poorest 53.6% of the world’s population holds just 1.4% of global wealth. This article defines the concept of inequality, lists the most important types of inequality, and highlights some of the facts and statistics related to this.
What is inequality?
Inequality refers to a socio-economic condition characterized by an unequal and/or unjust distribution of resources and opportunities among members of a given society. Such unfair differentiation in access to resources and opportunities is often generated by factors that relate to power, religion, race, ethnicity, gender, age, sexual orientation, and class. As a result of its multidimensional nature, the concept of inequality is subject to frequent misinterpretation and confusion in public debate and can imply different things to different people across different contexts. The last few decades have been marked by increased attention to issues of inequalities from stakeholders representing different levels that has resulted in the realization that inequality is systemic and is often rooted in local socio-economic and political paradigms. The solutions to current inequality problems have to be focused on empowering and promoting the inclusion of all irrespective of the factors that differentiate us.
Types of inequality
- Inequality of outcomes – refers to situations in which individuals of a given community do not have access to similar levels of material wealth and overall standards of living. Within the development theory, inequality of outcomes is generally concerned with inequalities in income or consumption but it can also include inequalities in education, health, or nutrition.
- Inequality of opportunity – implies that individuals living in a given community have limited access to desired paths for education, professional development, or income due to certain circumstances at birth such as their gender, place of birth, ethnicity, or parental background.
- Political inequality – is characterized by political systems that are dominated by a handful of political elites who have the exclusivity to create and guide political agenda. Individuals from other social levels have disproportionate involvement and influence over the outputs of policymaking processes.
- Inequality of treatment – refers to discriminatory or unfair ways of treating specific members of a given society in respect to access to public services such as health, education, housing, and social security.
Inequality facts & statistics
- According to the 2020 Global Wealth Report by Credit Suisse, the pandemic has already caused global wealth to fall by US$7.2 trillion which will most likely affect the level of household wealth and could further deepen the incidence of inequality
- The world’s richest 1% own 43.4% of the world’s wealth while the bottom 53.6% of the world’s population hold just 1.4% of global wealth
- The number of billionaires in 2021 was 2,755, or 660 more than in 2020. The overall wealth managed by those rose to US$13.1 trillion, up from US$8 trillion in 2020
- In the United States, around 67 % of women workers still earn the federal minimum wage of US$7.25 and only 8% of Fortune 500 firms’ CEOs are women
- In several African countries, more than one out of ten children born today will die before they are five years old
- Today, of 258 million children, 1 out of every 5 will not be allowed to go to school
- In 2019, the top 10% of the Russian elite received 46% of the national income, more than twice the share of the bottom 50%.
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