It is well documented that income inequality is on the rise, with the richest 10 percent earning up to 40 percent of total global income. The poorest 10 percent earn only between 2 percent and 7 percent of total global income. In developing countries, inequality has increased by 11 percent if we consider the growth of population. These widening disparities require the adoption of sound policies to empower the bottom percentile of income earners, and promote economic inclusion of all regardless of sex, race or ethnicity.
The Arab region suffers an average loss of 24.9 percent when the Human Development Index is adjusted for inequalities, which is above the world average loss of 22.9 percent. This is loss in human development is mainly driven by inequality in education and to a lower extent by income (17 and health inequality. Inequality is widest in the education component of the inequality-adjusted HDI (about 38 percent) and less severe in income component (17 percent). The Arab region also has the second highest ratio of rural to urban poverty (3.5) among all developing regions.
Income inequality is a global problem that requires global solutions. This involves improving the regulation and monitoring of financial markets and institutions, encouraging development assistance and foreign direct investment to regions where the need is greatest. Facilitating the safe migration and mobility of people is also key to bridging the widening divide.
Goals in action
The Dost Bakery is a small cake business that opened in Iraqi Kurdistan in the autumn of 2015. Dost means “friend” in Kurdish, as the bakery is run by 10 friends. All of them are women who were displaced by ISIS... MORE >