World Inequality Report 2022- Highlights

France-based World Inequality Lab published its report titled “World Inequality Report 2022”.

Highlights

• This report was authored by Lucas Chancel, who is the co-director of World Inequality Lab.
• It was coordinated by famed French economist Thomas Piketty.

Key Findings of the report

• Report notes that, top 1 % of the India’s population owns more than one-fifth of the total national income in 2021.
• The bottom half of the population earns just 13.1 per cent.
• It highlights that, economic reforms and liberalization that India has adopted, have mostly benefited the top 1 percent.
• Report identifies India as a poor and an unequal country, with an affluent elite.
• 1 percent richest people in India hold 22% of the total national income in 2021, while the top 10 % owns 57 per cent of the income.
• Average national income of the Indian adult population is Rs 204,200 in 2021, on the basis of purchasing power parity.
• However, report clarified that average national income of a country masks inequalities.

Income Gap

The income gap between top 10 percent and bottom 50 percent in India is 1 to 22 in 2021. The report noted India as one of the most unequal countries worldwide.

Where does BRICS nations stand?

Among the BRICS nations, South Africa and Brazil have wider income inequalities as compared to India. Income gap between top 10% and bottom 50% stood at 1 to 63 in South Africa and 1 to 29 in Brazil. In China and Russia, the income gap was 1 to 14.

Scenario in world’s richest nation

Ratio in richest nation that is US, is 1 to 17. The richest ten of the global population owns 52 per cent of global income. On the other hand, poorest half of the population earns 8.5 per cent of the global income.

Inequality in British India

Inequality in India has widened as compared to British rule. Report finds that, Indian income inequality was very high under British colonial rule, during 1858-1947. Top ten per cent of the population shared around 50 per cent of the national income.

Month: Current Affairs - December, 2021