The recently released World Inequality Report 2022 reveals a disturbing truth – India is among the most unequal countries in the world. This enlightening report, compiled by the World Inequality Lab, presents the latest and most comprehensive research on global inequality dynamics.
Global Wealth Distribution
The vast disparity in wealth distribution is eye-opening. Remarkably, the bottom half of the global population holds just 2% of total wealth, while the richest 10% possess a staggering 76%. Interestingly, the most unequal regions are found not in the Western world, but in the Middle East and North Africa (MENA), while Europe boasts the lowest levels of inequality.
The Global Gender Wage Gap
Further analysis reveals that inequality extends beyond wealth distribution to gender pay gaps. Despite progress over time, women’s share of total labour income was approximately 30% in 1990 and has only slightly increased to less than 35% today.
Inequality within Countries
The data also uncovers that inequalities within nations now surpass those between different countries. Alarmingly, the income gap between the top 10% and the bottom 50% within countries has practically doubled over time.
Implications of Government Wealth
In an ironic twist, while countries are becoming richer, their governments are growing poorer. This dwindling wealth of governments places serious limitations on their ability to address imminent challenges, such as inequality and climate change.
Impact of the Covid-19 Crisis
Unsurprisingly, the Covid-19 pandemic has aggravated these inequalities. Europe, Latin America, and South and Southeast Asia experienced the greatest drops in national income in 2020, while East Asia managed to stabilize its income level.
India’s Wealth Distribution
A standout finding of the report is India’s poor and unequal wealth distribution. In 2021, the top 1% of the population held over one-fifth of total national income, with the bottom half holding just 13%.
India’s Average Household Wealth
Astonishingly, the average household wealth in India stands at Rs. 983,010. The economic reforms and liberalisation adopted by India since the mid-1980s have led to significant increases in income and wealth inequality.
Gender Inequality in India
The disparity in gender pay in India is particularly troubling, with female labour income share at just 18%, significantly below the Asian average and among the lowest globally.
Carbon Inequality in India
On a positive note, India has low per capita greenhouse gas emissions compared to other regions. However, there are still disparities within the country, with the top 10% of the population being responsible for more emissions than the rest of the population.
Rise of Private Wealth in Emerging Economies
The rise of private wealth in emerging countries like China and India also stands out. China leads the pack with the most significant increase in recent decades, but the growth in India is also notable.
Suggestions for Improvement
To address these inequalities, the report suggests implementing progressive wealth taxes on multimillionaires. Such measures could generate substantial revenues that could help governments address these pressing issues.
Related Reports
The India Inequality Report 2021, also produced by the World Inequality Lab, shows how socio-economic inequalities impact health outcomes, highlighting the need for Universal Health Coverage (UHC). Furthermore, the Multi-dimensional Poverty Index (MPI) by Niti Aayog reveals that one in every four Indians is multidimensionally poor.
About World Inequality Lab
The World Inequality Lab is committed to researching and providing a comprehensive understanding of global inequality dynamics. Its primary missions include extending the World Inequality Database, publishing research papers, reports and methodological handbooks and promoting discussions on inequality in academic and public spheres.
