World Inequality report, 2022

World Inequality report, 2022

Part of: Prelims and GS-III – Economy 

Context World Inequality Report (WIR), 2022 has been released recently.

• Published by: The World Inequality Lab at the Paris School of Economics.
• It provides estimates of global income and wealth inequality based on the most recent findings compiled by the World Inequality Database (WID). 

Major findings of the report

• Most unequal region: MENA (Middle East and North Africa).
  • MENA consists of Algeria, Bahrain, Egypt, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Syria, Tunisia, United Arab Emirates and Yemen.
• Europe has the lowest inequality levels.
• Nations have become richer, but governments have become poor.
• Wealth inequalities have increased at the very top of the distribution. 
• The top 1% took 38% of all additional wealth accumulated since the mid-1990s, whereas the bottom 50% captured just 2% of it.
• Gender inequalities remain considerable at the global level, and progress within countries is too slow
• These inequalities are not just a rich vs. poor country issue, but rather a high emitters vs low emitters issue within all countries.

India’s performance

• India is among the most unequal countries in the world, with rising poverty and an ‘affluent elite.’
• The top 10% and top 1% in India hold 57% and 22% of the total national income respectively while the bottom 50% share has gone down to 13%.
• The average national income of the Indian adult population is Rs 2,04,200. 
• The share of female labour income share in India is equal to 18% which is significantly lower than the average in Asia (21%, excluding China) & is among the lowest in the world.