WORLD INEQUALITY REPORT (WIR)
- Severe Concentration of Wealth: Nearly 75% of the world’s wealth is held by the richest 10%, while the poorest 50% possess just about 2%. An ultra-elite group comprising roughly 60,000 individuals (the top 0.001%) owns wealth that is three times greater than that of half the global population combined. Their share of global wealth rose from around 4% in 1995 to more than 6% by 2025.
- Inequality in Human Capital Investment: Public and private spending on education shows stark disparities. Average expenditure per child in Sub-Saharan Africa is approximately €220 (PPP), compared with €7,430 in Europe and €9,020 in North America and Oceania—over forty times higher.
- Climate-Related Inequality: The richest 10% are responsible for about 77% of emissions linked to private capital ownership, whereas the bottom half contributes only 3%. Paradoxically, populations in low-income countries—who emit the least—face the greatest climate risks, while high emitters are better equipped with financial and technological means to adapt.
- Gender-Based Disparities: On average, women work around 53 hours per week compared to 43 hours for men when unpaid domestic and care work is included. In terms of earnings, women receive about 61% of men’s hourly wages when only paid work is considered; once unpaid labor is accounted for, their effective income drops to just 32%.
- Regional Income Gaps: Average daily income stands at roughly €125 in North America and Oceania, but only about €10 in Sub-Saharan Africa—reflecting a thirteen-fold difference. The income ratio between the top 10% and the bottom 50% further highlights deep inequalities within countries.
- Global Financial System Imbalances: Each year, poorer countries experience a net outflow of financial resources amounting to around 1% of global GDP—three times the volume of total development assistance—largely due to capital flows toward US and European government bonds
- Income Disparities: A significant share of national income—about 58%—is accrued by the top 10% of earners, whereas the bottom half of the population accounts for only around 15%.
- Concentration of Wealth: Nearly two-thirds of the country’s total wealth is owned by the richest 10%. Within this group, the top 1% alone controls roughly 40% of overall wealth.
- Low Female Workforce Participation: Women’s participation in the labor market stands at just 15.7%, placing it among the lowest rates globally.
- Overall Economic Well-being: The average per capita income is close to €6,200 annually (PPP-adjusted), while mean household wealth is estimated at about €28,000 (PPP)
The World Inequality Report (WIR) is a flagship global publication that provides a comprehensive assessment of income and wealth inequality across countries and regions over time.
Key points about the World Inequality Report (WIR):
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Produced by: The World Inequality Lab, led by renowned economists such as Thomas Piketty, Lucas Chancel, Emmanuel Saez, and Gabriel Zucman.
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Frequency: Published periodically (major editions in 2018, 2022, 2024, etc.).
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Data Source: Based on the World Inequality Database (WID), which compiles tax records, national accounts, household surveys, and wealth data.
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Coverage: Tracks inequality trends within countries and between countries, covering income, wealth, gender gaps, carbon inequality, and regional disparities.
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Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): Provides wage employment and income security to rural households.
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Prime Minister’s Employment Generation Programme (PMEGP): Encourages self-employment and entrepreneurship, particularly among youth and marginalized groups.
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Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM): Focuses on enhancing livelihoods and skill development for the urban poor.
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Samagra Shiksha 2.0: Aims to strengthen access, equity, and quality across all levels of school education.
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Pradhan Mantri Jan Dhan Yojana (PMJDY): Promotes financial inclusion by ensuring universal access to banking services.
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Lakhpati Didi Initiative: Seeks to empower women economically by supporting sustainable income generation at the household level
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For Prelims: MGNREGA, Pradhan Mantri Jan Dhan Yojana (PMJDY), World Inequality Report (WIR)
For Mains: General Studies-II: Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes
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Previous Year Questions
1.Inclusive growth as enunciated in the Eleventh Five Year Plan does not include one of the following: (UPSC CSE 2010) (a) Reduction of poverty (b) Extension of employment opportunities (c) Strengthening of capital market (d) Reduction of gender inequality Answer (c) Mains 1. COVID-19 pandemic accelerated class inequalities and poverty in India. Comment. (2020) |
