They constitute a small group, 10% of the world population. A dozen football stadiums would be enough to bring them all together. This is the part of the population which concentrates 75% of world heritage and captures 53% of total income. This is just one of the conclusions of the report on global inequality produced by him Global Inequalities Laboratorywhich reveals a growing gap in the distribution of wealth in the world.
The study, in which 200 researchers participated and led by economists Ricardo Gómez Carrera, Thomas Piketty, Lucas Chancel and Rowaida Moshrif, carried out an x-ray of inequalities on the planet, taking into account, on the ground, differences in income or wealth, as well as other aspects that influence such as climate or gender. This is the third edition of the report, from 2018 to 2022.
“Inequality affects all areas of economic and social life. The data reveals an extreme concentration of wealth in a small part of the population,” summarized Mexican economist Ricardo Gómez Carrera, during the presentation of the study.
The rich are always getting richer and the poor are always getting richer. Today, the richest 0.001% of the population on the planet, less than 60,000 billionaires, control three times more wealth than the majority of humanity. The wealth of this minority has increased by an average of 8% per year since the 1990s. This trend “has continued to increase, highlighting the persistence of inequalities”, according to the research.
Two elements contribute to worsening this disparity: climate change and gender inequality. “We tried to highlight that there are other forms of inequalities, which exist between men and women or which are linked to the climate, which are problems which persist and which societies do not face head-on”, underlines Lucas Chancel.
Concerning climate change, the document reveals that contributions to combat its effects are very unequal, it is mainly based on the fact that the 10% of the richest people in the world are responsible for 77% of global emissions. “These are the ones who can better protect themselves from natural disasters,” say economists. Only 3% of emissions correspond to the poor population, “just those who are most exposed to climate disasters” and those who are the least prepared are ready to face them. “Social inequalities on a global scale and climate issues cannot be separated. These levels of reflection must be integrated to find solutions,” believes Thomas Piketty.
Pay inequality between men and women is another problem, leaving most work unpaid. These unvalued overtime hours are taken into account when drawing conclusions. Women receive a quarter of the total income produced by their work, “a figure which has not changed since 1990”, specifies the studio.
If you have these unpaid jobs, they’re making 32% of the hourly wage that they’re getting paid. If they were not able to perform these domestic tasks, they would obtain 61% of men’s income. This data “reveals not only persistent discrimination, but also inefficiencies in the way societies value and share work,” according to the authors.
“This limits women’s employment opportunities, limiting their participation in political life,” for example. “It is not just a question of equality, a sign of structural inefficiency. Economies that undermine the value of people’s work undermine their own capacity for growth and resilience,” the study says.
According to Ricardo Gómez Carrera, “despite some progress in Europe or America, many regions are very far from equality”. By region, in the richest countries, there is less inequality in this sense: Europe, Japan, China or the United States. The gap is widening in Africa, the Middle East and Latin America.
“What we need are political actions, to reduce these inequalities, if we put the emphasis on the government and redistribution policies can be reduced,” according to Carrera. French economist Thomas Piketty insists that “the most inclusive investments in education and health” can reduce this gap.
Access to human capital remains very unequal, as revealed by the fact that the average education expenditure per child in sub-Saharan Africa is 200 euros, compared to 7,400 euros in Europe or 9,000 in North America. This gap “conditions the possibilities of success of future generations”.
Faced with this panorama, the organization calls for global cooperation to achieve progressive taxation. “By 2025, these inequalities will reach levels that require urgent attention. The benefits of globalization and economic growth accrue to only a minority, while others struggle to access livelihoods. Inequalities are extreme and persistent.”
They believe that governments can remedy the situation with measures and are in favor of “proposals such as a minimum tax on the wealth of multimillionaires, which demonstrates the amount of revenue that can be mobilized to finance education or climate change”. As Lucas Chancel reminds us, “it is a subject of political elections”.
About The Author
