The most unequal societies in the world for A Level Economics

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The most unequal

societies in the world

By Evrard Feutching

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Unequal societies in the World

• How is it measured?• How and why is it bad?• What societies are the most equal?• What societies are the most

Unequal?• Is corruption linked with Income

indequality?

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How is income inequality measured?

Gini Index: Also known as Gini Ratio.

Standard economic measure of income inequality, based on Lorenz Curve. A society that scores 0.0 on the Gini scale has perfect equality in income distribution. Higher the number over 0 higher the inequality, and the score of 1.0 (or 100) indicates total inequality where only one person has all the income.

How & why is income inequality bad?

• World Bank reports that "high inequality threatens a country's political stability“

• Extreme inequality ruins democracy; When inequality becomes extreme, it undermines democracy, as the late philosopher John Rawls and others have argued, because it creates unequal access to the political system and to positions of power.

• It undermines 5th Macroeconomic objective; “Equitable distribution of income and wealth”

• income inequality can breed corruption

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Gini Index Rankings (Top 10)

1  Namibia 70.7 2003

2  South Africa 65.0 2005

3 Lesotho 63.2 1995

4  Bostwana 63.0 1993

5 Sierra Leone

62.9 1989

6 Central African Republic

61.3 1993

7  Haiti 59.2 2001

8  Colombia 58.5 2009

9  Bolivia 58.2 2009

10 Brazil 56.7 2005

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Income Inequality in US (41st)

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Income Inequality in US (41st)

• The richest group in us owns 85% of the nation's wealth.

• Richest 1% of the US population own a third of US net worth.

• There are now over 3.1m millionaires and the US has over 400 billionaires, more than any other country in the world

• Now, one in every seven Americans lives below the poverty line - that's a record 48 million people

• One in six Americans have no health insurance - 50 million people, a population twice the size of Texas (27m people).

• 14.5% of Americans households are defined as "food insecure". That means for every seven households, one will have trouble putting enough food on the table

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Income inequality in Guinea

Mr. Teodoro Mangue Mr. Teodoro Mbasogo

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Mr. Teodoro Mangue Son of Equatorial Guinea leader, has £35m mansion in America and a 6 stories mansion in a prestigious are in Paris. Has a private jet, and a collection of cars worth over £10m, including, 3 Bugatti veyrons, Ferraris, Bentleys, Maybachs, Lamborghinis etc. He also has $700m in an US account.How is this possible? He is supposed to be on a wage of £36,000 per annum.

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President MbasogoWhilst Equatorial Guinea is one of the poorer nations on the planet, with more than 60% poverty rate…

This shows that corruption and income inequality can be linked.

Also the president was voted in 2010 with 97% in favour for President Mbasogo. (34 years in power and counting)

97? Really? Or was it fixed, you decide…

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Gini Bingo• Write 3 by 3 grid with 9 countries• Read out facts about the country• Tick off country

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The End