Top 10 Countries By Income Inequality in the World 2023

Wealth disparity, commonly referred to as the wealth chasm, stands as a quantitative reflection of wealth distribution. It essentially encapsulates the vast chasm between the most affluent individuals and the least privileged in a specific region, whether it be a nation, state, city, or demographic cluster.

The issue of wealth inequality exhibits a strong correlation with income inequality, which is a barometer of individuals' earnings. However, wealth inequality encompasses more than just income, taking into account the value of bank accounts, stocks, investments, real estate, and personal assets such as vehicles, jewellery, art, and other valuables. It is a prominent driver of unequal living standards in numerous communities.

ALSO READ| Top 10 Countries With Longest Work Hours in the World 2023

List of Top 10 Countries By Wealth Inequality 2023

Research findings unveil a paradoxical trend where globalization has mitigated global wealth disparity on an international scale while exacerbating it within national boundaries. Typically, less developed countries exhibit more pronounced inequality compared to their more advanced counterparts. The following is a list of nations witnessing elevated wealth inequality:

1. South Africa - 63.0%
2. Namibia - 59.1%
3. Suriname - 57.9%
3. Zambia - 57.1%
4. Sao Tome and Principe - 56.3%
5. Central African Republic - 56.2%
6. Eswatini - 54.6%
7. Mozambique - 54.0%
8. Brazil - 53.4%
9. Botswana - 53.3%

This list is based on the GINI index, a summary measure of income inequality. The Gini coefficient consolidates comprehensive data into a single statistic, summarizing the spread of income across an entire income spectrum.

ALSO READ - OECD Countries: Top 3 Countries Where Indians Immigrate

Countries By Most Wealth Inequality 2023

Nine out of the top 10 nations on this list are situated in Europe or at the Europe/Asia junction (Azerbaijan). The highest-earning 1% in Europe lay claim to just 12% of the aggregate income, while the bottom 50% command 22% of the income share. By way of contrast, in the United States, a country with the most billionaires globally, the top 1% garners 20% of income, while the lowest-earning 50% secure a mere 10%. The reduced inequality and enhanced equity in Europe can be ascribed to the continent's steadfast commitment to preserving a non-market society, where market forces do not wield undue influence over sectors such as education, healthcare, and wages. Notable examples include social healthcare systems and more favourable labour markets.

Over the years, South Africa's income inequality has intensified. The top 1% of earners now lay claim to nearly 20% of total income, and the top decile secures 65%. In stark contrast, 90% of income earners in South Africa are left with a meagre 35% of total income. Income distribution in South Africa remains marked by racial, gender, and spatial disparities, with white individuals having better job prospects and income, women earning approximately 30% less than their male counterparts, and urban workers earning roughly double the income of their rural peers.

For many African nations, income inequality is deeply ingrained in their economic fabric. A select few high-income sectors generate substantial wealth, but this wealth is concentrated among a limited number of individuals. Meanwhile, the majority of the workforce finds itself entrenched in lower-income sectors, earning significantly less.

These disparities are often exacerbated by deficient educational systems that fail to equip all but the wealthiest citizens for higher-paying skilled positions, and by the presence of corrupt or oppressive governments. Furthermore, while several Eastern and Southern African countries possess abundant resources, both natural and human, numerous other African nations grapple with the scarcity of necessities such as arable land and clean water, which can impede overall economic progress.

ALSO READ  - List of Top 10 Most Educated Countries in the World 2023

What is the GINI Coefficient?

The Gini index, also known as the Gini coefficient, serves as a metric for measuring income distribution within a population. Conceived by Italian statistician Corrado Gini in 1912, it primarily functions as a gauge of economic disparity, measuring either income or, to a lesser extent, wealth distribution among a populace.

The coefficient spans from 0 (representing perfect equality) to 1 (representing absolute inequality). Theoretically, values exceeding 1 are possible due to negative income or wealth. In a nation where each resident earns the same income, the income Gini coefficient would be 0. Conversely, a nation in which one individual monopolizes all the income, leaving nothing for others, would exhibit an income Gini coefficient of 1. In affluent countries, the Gini index assesses net income rather than net worth, allowing a disproportionate share of the nation's wealth to be concentrated in the hands of a select few, even if income distribution appears relatively even.

ALSO READ - Top 10 Least Visited Countries In the World 2023