World Inequality Report (WIR) 2022 | IAS Target IAS Target

World Inequality Report (WIR) 2022

Context:

World Inequality Report (WIR) 2022 has been published. So what do you need to know about it?
Published by the Institute for World Inequality, the Paris School of Economics research centre, WIR examines different types of financial data to see how national (and global) income and wealth are distributed.

Report Importance- Need to Study Inequality?

  • This is important information because, in most democracies, the rich can and turn their economic power into political power.
  • The greater the inequality, the more likely it is that the wealthy minority will ultimately determine the fate of the majority.
  • The availability of accurate data on the degree of inequality helps generate public opinion supporting policies that can mitigate them.

Key findings of the 2022 report:

  • Due to government policies favoring the rich, the gap between the rich and the poor in terms of national income share is huge and rapidly widening.
  • The wealthiest 10% of the world's population make up 52% ​​of the world's income, while the poorest 50% receive only 8.5%.
  • Wealth inequality in the world is worse than income inequality.
  • The poorest 50% own only 2% of the world's wealth, while the richest 10% own 76% of all wealth.
  • Inequality between countries has decreased, and domestic inequality has increased.
  • The gap between the median income of the wealthiest 10% and the median income of the poorest 50% has decreased from 50x to less than 40x, but the top 10% and bottom 50% of income.
  • The proportion of private property in national wealth is increasing, and the proportion of public property (buildings, universities, streets, hospitals, etc.) decreases.

Inequality on all continents:

Europe is the region with the least inequality (the top 10% has an income share of 36%), while inequality is in the MENA (the Middle East and North Africa (MENA)) region.

India's Income Inequality:

  • India is one of the unequal countries globally, with the top 1% receiving 21.7% of national income.
  • The top 10% of Indians generate 57% of national income, while the bottom 50% share only 13%.
  • The median national income of the bottom 50% was 53,610 yen, but the top 10 was more than 20 times higher at 11,66,520 yen.
The report suggests that inequality and poverty are not inevitable but are primarily the result of political choices. It tracks how inequality has increased worldwide, following liberalization programs implemented in different countries, as opposed to the last three decades since the 1980s.