45126-Invest. Qual-No111

Policies on Poverty, Exclusion and Inequalitylive with the demands of constantly reinventing the economy andflexibly transforming institutions in a global age.The development of greater co-ordination in setting objectives andtargets, devising strategies and policies, and monitoring outcomes,for social policy that will emulate the process EU member states arecurrently following in employment matters (the ‘open method ofcoordination’, OMC) will have the full backing of the Council.BOX 8.5The Gini CoefficientThe Gini coefficient is based on the Lorenz curve, a cumulativefrequency curve that compares the distribution of a specificvariable with the uniform distribution that represents equality(Figure 1). This equality distribution is represented by a diagonalline, and the greater the deviation of the Lorenz curve from thisline, the greater the inequality.Areas for calculation of the Gini CoefficientEquality diagonalLorenz curveWhen applying this index to income distribution, the cumulativeproportion of the population is generally shown on the X axis,and the cumulative proportion of personal disposable income onthe Y axis. The greater the distance from the diagonal line, thegreater the inequality.431