The wealth gap is noticeable everywhere, and in this article, Insider Monkey brings you the list of 25 most unequal countries with the worst income equality in the world.
If you look at the distribution of wealth worldwide, it is evident that it is not exactly the paradigm of equality and equity. Anyone who is following stories the media generates is aware that there are huge disparities in economic opportunities. When the expression “world hunger” is used, a majority of us first think of African children. On the other hand, the word “luxury” draws the images of Los Angeles, Abu Dhabi, and London in our minds. However, unequal income distribution is not only inherent to the world as a whole, but also to each and every country. Perhaps the best example of wealth gap lies in that viral image of Brazilian city which shows slums, also known as favelas, on one side of the wall and luxury apartments on the other. One community lives in proximity to other, with just a thin wall between them, yet they could not be farther apart. They lead completely different lives and either side cannot walk in the shoes of the other.
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Not that long ago I have written an article on countries with the highest poverty rates in the world in 2017. In the article, I threw some shade at capitalism for generating inequalities, as I always do, and by referring to the official data on poverty rates worldwide, I offer the list of the poorest countries in the world in 2017. As it was expected, most of the countries on the list were those located in Africa. South Sudan came at the top, followed by Haiti and Ethiopia. Due to high poverty rates, these countries struggle to satisfy the basic needs of their nationals, unlike those which found their place on our list of countries with the lowest poverty rates in the world in 2017. The Republic of Korea came 1st on this list. Iceland followed on 2nd place and Germany on 3rd. The worldwide wealth gap is well illustrated in these two articles. This time, however, I look at the matter on a smaller scale by focusing on the most unequal countries with the worst income equality.
The most famous measure of income inequality is Gini coefficient or Gini ratio. It is a statistical measure of wealth distribution among nation’s residents. The higher the value of Gini index, the higher income inequality. The data on Gini coefficient by country in 2014, provided by the Organization for Economic Cooperation and Development (OECD) show that Costa Rica had the highest income inequality. In 2015 however, South Africa came first as the most unequal country. Gini coefficient ranking of 2016 suggests that Bolivia and China were some of the most unequal countries in the world in 2016. There are no data on Gini coefficient ranking of 2017. I guess all of us will have to be patient until experts do their job, so we can find out which is the country that had the highest Gini coefficient in 2017.
It is interesting to look into the example of the United States with regards to income inequality. The US Gini coefficient over time has shown a tendency to increase. Data shows that the Gini coefficient of the USA has been steadily rising since the 1960s. The value of Gini coefficient at the beginning of 1960 was 0.37, while in 2015 it was 0.45. The OECD shows that the USA has one of the greatest wealth distribution inequalities in the developed world.
To create the list of 25 most unequal countries with the worst income equality in the world, I have used data provided by a number of relevant sources. I have referred to the data on Gini coefficient values worldwide contained in the report provided by the United Nations Development Programme (UNDP). I have also looked into the Gini coefficient country data on the official website of the US Central Intelligence Agency (CIA). Furthermore, I have used the data provided by the OECD and Statista, which gathers statistical data from more than 18.000 sources. Based on the Gini coefficient values for each country, I was able to rank 25 most unequal countries.
25. Costa Rica
Costa Rica occupies the last spot on our list of most unequal countries. Its Gini coefficient was last measured in 2014, and it was 48.5.
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24. Nigeria
For some time Nigeria has been grouped among the poorest countries in the world. Data shows that it is also one where income is unequally distributed. Its Gini coefficient is 48.8.
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23. Democratic Republic of Congo
This African country has a lot of issues that need to be tackled, and unequal distribution of income is definitely on the list. As data from 2015 shows, its Gini coefficient is 48.9 placing it 23rd on our list.
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22. Sri Lanka
Numbers show that the government of Sri Lanka has made significant progress in eradicating poverty. Urban poverty has been reduced to 5.3 %, while rural poverty has been reduced to 9.5 %. The remaining issue is an unequal distribution of income. Sri Lanka’s Gini coefficient is 49.0.
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21. Zimbabwe
Zimbabwe has been the focus of the media worldwide because of the political upheavals in the country. Whoever gets to lead the country in the following years should draw the attention to decision making bodies to a rather high Gini coefficient, which is 50.1.
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And now, let’s see the top 20 most unequal countries with the worst income equality in the world.
20. The Gambia
Data from 2014 suggests that more than 60 % of the population of the Gambia lives in poverty, making it one of the poorest countries in the world. Its high poverty rate also reflects in a high Gini coefficient which is calculated to be 50.2.
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19. Rwanda
1994 genocide has shattered Rwanda’s economy into pieces. Nevertheless, the country has since managed to move forward. The unequal distribution of income remains an issue as its Gini coefficient is estimated to be 50.4. One problem at a time, Rwanda.
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18. Chile
The latest data on Chile’s Gini coefficient is from 2013 when it was measured to be 50.5.
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17. Honduras
Honduras has also made it to our list of the most unequal countries with the worst income equality in the world with estimated poverty of 62.2 %. Its Gini coefficient is 50.6. It appears that a small amount of wealth is concentrated in the hands of the few.
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16. Panama
Whenever I hear of this country, Panama papers scandal comes into my mind. This country has a lot of beautiful sights to offer some of which certainly make you believe heaven is on Earth. Gini coefficient concerns the year 2014, and it is 50.7.
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15. Guinea-Bissau
Much like is the case with many other countries on this list, Guinea-Bissau’s high poverty rate coincides with unequal income distribution. As the data provided by Statista indicates, country’s Gini coefficient is the same value as Panama’s and concerns 2015.
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14. Papua New Guinea
Papua New Guinea has a Gini coefficient of 50.9 which is why the country is ranked 14th on our list of 25 most unequal countries with the worst income equality in the world. The country was not listed with the poorest countries in the world. Nevertheless, its poverty rate is something that needs immediate attention, 39.9 %.
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13. Swaziland
This small African country is famous for its wildlife and rich cultural heritage. Gini coefficient by country of 2016 shows that Swaziland is among the most unequal countries in the world. Its Gini coefficient is 51.5.
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12. Brazil
Given the image I mentioned in the introduction of this article, I am not surprised that Brazil has found its place on this list. The country’s Gini coefficient in 2014 was 49.7, while in 2015 it was 51.5. That is quite an increase considering it is just a one-year gap.
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11. Paraguay
Paraguay’s Gini coefficient data concern the year of 2014 when the index was calculated to be 51.7.
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10. Colombia
The latest data concerning Gini coefficient is from 2014 when the index value was 53.5. This places Colombia, the number 10 on our list of most unequal countries with the worst income equality in the world, in the group with other countries with unequal income distribution.
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9. Hong Kong
Given that Hong Kong has a high GDP and is a global economic power, I am a bit surprised it is grouped with other countries on this list. As the data provided by the CIA show, Hong Kong’s Gini index is 53.7.
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8. Lesotho
In 1995, Lesotho’s Gini coefficient was 63.2, while in 2015 it was 54.2. It is good that the value of the index has decreased over the years. I hope this tendency continues.
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7. Zambia
The Gini coefficient of Zambia was 57.5 in 2013, while in 2015 it was 55.6. Just like in the case of Lesotho, it shows a tendency to decrease.
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6. The Central African Republic
The last measured Gini coefficient concerned 2015 when it was 56.2. In CIA’s ranking, the country occupied the 3rd place.
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5. Botswana
The 5th spot on our list of most unequal countries with the worst income equality in the world belongs to Botswana. The Gini coefficient data concerned 2009 when the index was 60.5.
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4. Haiti
The 2nd poorest country in 2017 has a Gini coefficient of 60.8. The small amount of wealth in this country appears to be owned by a few.
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And now, let’s see the top three most unequal countries with the worst income equality in the world.
3. Namibia
Namibia’s Gini coefficient in 2015 was 61. Five years before that, it was 59.7. I hope the increasing trend does not continue in the future.
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2. The Federated States of Micronesia
The Gini coefficient estimated in 2013 was 61.1, which is why Micronesia is the 2nd most unequal country in the world.
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1. South Africa
The 1st spot on our list of 25 most unequal countries with the worst income equality in the world belongs to South Africa. The latest data shows that this country has a Gini coefficient of 63.4.
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This was Insider Monkey’s list of 25 most unequal countries with the worst income equality in the world.
