CHILD POVERTY AND INEQUALITY: THE WAY FORWARD

(Barry) #1

  1. Global Income Inequality Trends and the Poor, Children


and Women


While the previous section showed the vast income inequalities that


characterize our world, this section sets out to answer some of the


more pressing questions regarding the overlying trends and impacts


of this reality. In particular, what do we know about global


inequality trends over a longer-term horizon? What do the extreme


distortions in income distribution at the global level mean for


different groups, such as the poor, children, women or the middle


classes? And are there alternative measures of wealth that could


shed further light on the overall state of global inequality at present?


2.A. Income inequality in historical perspective


What do we know about world income inequalities over the past


centuries? Studies using longer time series conclude that income


inequality has been constantly increasing since the early 19th century.


Milanovic (2009), for example, calculates Gini indices^27 over time


and finds that global income inequality


rose steadily from 1820 to 2002, with a


significant increase from 1980 onwards


(Table 9).^28 To further inform the more


recent trajectory, Cornia (2003) concludes


that inequality increased globally between


the early 1980s and 1990s following a


review of different studies. While our


analysis shows some reversal of this trend,


there is a significant likelihood that


income inequality is being exacerbated in


the ongoing global economic crisis


(Section 8).


(^27) The Gini index is the most commonly used measure of income inequality,
where 0 is perfect equality (e.g. each person has exactly the same income) and 1 is
perfect inequality (e.g. one person has all income). See Box 2 for a more detailed
discussion on Gini indices.
(^28) See Annex 2 for Gini index values for most countries in recent years.
Table 9. Estimated Global
Gini Indices, 1820 - 2002
Year Gini
1820 43.0
1850 53.2
1870 56.0
1913 61.0
1929 61.6
1950 64.0
1960 63.5
1980 65.7
2002 70.7
Source: Milanovic (2009)

Free download pdf