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SECTION 1 2 3 EXTREME INEQUALITY FIGURE 1: Global income distribution by percentile of population ($) Q5 Q4 Each horizontal band represents an equal fifth of the world’s population Population (in quintiles) Q3 Q2 Persons below $2/day (40 percent) Q1 Persons below $1.25/day (22 percent) Income ($) But it is national inequality that matters most to people’s lives, and this is rising rapidly almost everywhere. Seven out of ten people on the planet now live in countries where economic inequality is worse than it was 30 years ago. 142 Today, the rich are earning more, both in absolute terms and relative to the rest of the population. According to the World Top Incomes Database, in all but two of the 26 countries measured (Colombia and the Netherlands), the share of income going to the richest one percent increased – and in Colombia, it held steady at around 20 percent. 143 India, China and Nigeria are three of the world’s fastest growing, and most populous, developing economies. Figure 2 demonstrates how their national income is shared between the richest 10 percent and poorest 40 percent. They show that the benefits of growth have increasingly accrued to the richest members of society, pushing income inequality ever higher. In just these three countries, more than 1.1 billion people – 16 percent of the world – are getting an increasingly smaller share. 144 30
SECTION 1 2 3 EXTREME INEQUALITY FIGURE 2: Increasing inequality in three middle-income countries 145 Income share held by wealthiest 10% China 40 Income share held by poorest 40% Share of national income (%) 35 30 25 20 15 10 5 0 1980 1985 1990 1995 2000 2005 2010 India 40 Share of national income (%) 35 30 25 20 15 10 5 0 1980 1985 1990 1995 2000 2005 2010 Nigeria 40 Share of national income (%) 35 30 25 20 15 10 5 0 1980 1985 1990 1995 2000 2005 2010 31
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The widening gap between rich and p
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