In this article, we will look at the 30 countries with the widest gap between rich and poor. If you want to skip our detailed analysis, go directly to the 5 Countries with the Widest Gap Between Rich and Poor.
Economic Inequality Around the World
Excessive inequality can impact social unity, lead to political polarization, and lower economic growth. Whereas, excessive equality can also lead to limited investments and growth opportunities. This means balance is the key and for economies to flourish there must be a balance in wealth or income equality. However, global inequalities are in bad shape and appear to worsen. According to the 2024 UBS Global Wealth Report, the world’s richest 1% population, those with over $1 million, were worth approximately $214 trillion in 2023. On the other hand, the people with the lowest wealth, less than $10,000, make up 40% of the world’s population but own less than 1% of the world’s wealth.
Countries have more disparities in wealth equality compared to income equality. African countries have the highest wealth difference, and some countries with the highest wealth inequality include Lesotho, Zambia, South Africa, Botswana, Equatorial Guinea, Namibia, and Nigeria. According to the World Inequality Report 2022, the world’s bottom 50% of the population had a share of less than 15% in total earnings in 2021, excluding Europe. Whereas, the same share of the bottom 50% of people in the world is less than 10% in Latin America, Sub-Saharan Africa, and the MENAS region. In 2021, an average adult earned around $23,380 per year, while the average adult possessed a total wealth of $102,600. The richest 10% people of the world on average earn around $122,100 per year compared to $3,920 earned by the poorest 50% of the global population.
The richest 10% of people in the world share more than 40% of the total global earnings; in some regions, it surpasses over 60%. On the contrary, the world’s bottom 50% of the population shares merely 2% of the total global wealth against the 76% global wealth share owned by the richest 10% of people. In addition, the top 1% of the richest people are experiencing a rapid increase in their wealth compared to the rest of the population. Between 1995 and 2021, the top 1% of people gained 38% of the global increase in wealth compared to only 2% of the wealth share obtained by the bottom 50% of the population.
Today, the freelance economy is continuing to rise with wider opportunities for remote jobs, especially with platforms like LinkedIn, Fiverr, and Upwork. According to Mordor Intelligence, the freelance platforms market size is estimated at around $6.56 billion in 2024 and is projected to reach $14.17 billion by 2029, growing at a compound annual growth rate of (CAGR) of 16.66%.
READ ALSO: 20 States with the Lowest Gas Taxes in the US and 12 Countries With Best Moody’s Credit Rating For Sovereign Bonds.
Fiverr International Ltd. (NYSE:FVRR) is one of the leading employment services companies in the world. The company operates an online marketplace where freelancers can sell their services to clients all over the world. Fiverr accommodates over 700 categories across 10 verticals, allowing professionals from different backgrounds to sell their services.
Investors haven’t shown much interest in Fiverr International Ltd. (NYSE:FVRR) since post-pandemic as the remote work boom slowed down. However, Fiverr remains a go-to gig economy platform and also remains an attractive player in this sector due to its capital-richness. The financial leverage has allowed Fiverr International Ltd. to activate several share buyback programs, allowing the company to increase the value of its remaining shares in the market.
On July 31, Fiverr International Ltd. (NYSE:FVRR) announced the acquisition of AutoDS, a leading dropshipping automation tool with a subscription-based model that supports drop shippers with product research, sourcing, inventory management, and automated fulfilment. With this acquisition, Fiverr wants to enhance its e-commerce offerings, in addition to adding a new subscription revenue stream. Fiverr International Ltd. will also benefit from AI and it will potentially have a net positive impact on the firm.
Baron Funds mentioned Fiverr International Ltd. (NYSE:FVRR) in its fourth-quarter 2023 investor letter:
“Fiverr International Ltd. (NYSE:FVRR) is the leading two-sided online freelance marketplace, offering a platform that connects businesses with freelancers across a variety of functions, from web design to digital marketing, computer programming, and inventory management. The stock has been weak due to a complex macro environment driving small businesses, who represent the majority of Fiverr’s buyers, to cut down on freelancing spending. This recent trend was exacerbated by investor fears that Generative AI (GenAI) would disrupt various freelancing jobs. While we agree that some freelancing functions are more exposed to artificial intelligence (AI) disruption than others (logo design for example), we believe Fiverr’s diverse platform as well as new incremental demand from AI-related work, would minimize the potential negative impact from GenAI. In our view, macro conditions are behind the recent deceleration in the company’s revenue growth. However, the fact that growth decelerated at the same time as GenAI adoption began gaining steam, created a bearish narrative for the stock. In our view, Fiverr’s current stock price overly discounts that risk and offers an extremely attractive risk-reward equation for long-term investors. Over 20% of the company’s market cap is in net cash, the stock is trading at approximately an 8% free-cash-flow yield, and management continues to make rapid progress on margin expansion; EBITDA margins are expanding from 7.2% in 2022 to 16.3% in 2023 based on the company’s mid-point guidance.”
While we acknowledge the potential of FVRR as an investment, our conviction lies in the belief that under the radar AI stocks hold great promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FVRR but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Now, let’s take a look at the 30 countries with the widest gap between rich and poor.
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Our Methodology
To determine the countries with the widest gap between rich and poor, we gathered the average income share of the top 10% and bottom 50% population of countries from the World Inequality Database, as of 2022. The countries with the widest gap between rich and poor are ranked in ascending order of their widest gap between the average income share of the top 10% and bottom 50% of the population.
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30 Countries with the Widest Gap Between Rich and Poor
30. Seychelles
Income Share of Top 10%: 52.10%
Income Share of Bottom 50%: 12.10%
Gap Between Top 10% and Bottom 50%: 40%
Seychelles is one of the smallest countries in Africa, with the income share of the top 10% around 52.10% and the income share of the bottom 50% just around 12.10%. Seychelles has a Gini coefficient score of 76 and ranks among the 30 countries with the widest gap between rich and poor.
29. Eritrea
Income Share of Top 10%: 53.60%
Income Share of Bottom 50%: 13.20%
Gap Between Top 10% and Bottom 50%: 40.40%
Eritrea is a northeast African country with a Gini coefficient score of 76.3. With an income share gap of 40.40% between the top 10% and bottom 50% population of the country, Eritrea ranks 29th among the countries with the widest gap between rich and poor.
28. Uganda
Income Share of Top 10%: 52.80%
Income Share of Bottom 50%: 12.30%
Gap Between Top 10% and Bottom 50%: 40.50%
Uganda is a landlocked country in East Africa with an income share difference of 40.50% between the top 10% and bottom 50% population. Uganda has a Gini coefficient score of 82.8.
27. Thailand
Income Share of Top 10%: 51.70%
Income Share of Bottom 50%: 10.80%
Gap Between Top 10% and Bottom 50%: 40.90%
Thailand has a high rate of income inequality in East Asia, with one of the major contributors being the difference in urban and rural income. Thailand’s income share gap between the top 10% and bottom 50% people is just under 41%. Thailand ranks 27th among the countries with the widest gap between rich and poor.
26. Kuwait
Income Share of Top 10%: 52.90%
Income Share of Bottom 50%: 11.80%
Gap Between Top 10% and Bottom 50%: 41.10%
Kuwait has a Gini coefficient score of 86.2. The top 10% of people in the country have an income share of 52.90% and the bottom 50% have an income share of 11.80%.
25. Cameroon
Income Share of Top 10%: 52%
Income Share of Bottom 50%: 10.60%
Gap Between Top 10% and Bottom 50%: 41%
Cameroon ranks 25th among the countries with the widest gap between rich and poor. Cameroon has a Gini coefficient score of 83.3 and a 41% income share gap between the top 10% and bottom 50% people.
24. Rwanda
Income Share of Top 10%: 53.90%
Income Share of Bottom 50%: 11.80%
Gap Between Top 10% and Bottom 50%: 42.10%
Rwanda’s income share of the top 10% population is around 53.90% and the bottom 50% has a 11.80% income share. Rwanda has a Gini coefficient score of 81.8.
23. Côte d’Ivoire
Income Share of Top 10%: 54.70%
Income Share of Bottom 50%: 11.60%
Gap Between Top 10% and Bottom 50%: 43.10%
Côte d’Ivoire is a West African country with one of the widest gaps between rich and poor. The top 10% and the bottom 50% of the population have an income share difference of 43.10% and rank among the 30 countries with the widest gap between rich and poor.
22. Saudi Arabia
Income Share of Top 10%: 54.40%
Income Share of Bottom 50%: 10.80%
Gap Between Top 10% and Bottom 50%: 43.60%
Saudi Arabia is one of the richest countries in the Middle East. The richest 10% of the people have an income share of 54.40% and the bottom 50% just have a 10.80% income share. Saudi Arabia has a Gini coefficient score of 86.4.
21. Syria
Income Share of Top 10%: 54.30%
Income Share of Bottom 50%: 10.50%
Gap Between Top 10% and Bottom 50%: 43.80%
Syria is one of the poorest Arab countries and has a Gini coefficient score of 77.8. With an income share gap of 43.80%, Syria ranks 21st among the countries with the widest gap between rich and poor.
20. India
Income Share of Top 10%: 57.10%
Income Share of Bottom 50%: 13.10%
Gap Between Top 10% and Bottom 50%: 44%
India ranks 20th among the countries with the widest gap between rich and poor. India has the largest population in the world and an income share gap of 44% between the top 10% and bottom 50% of people.
19. Qatar
Income Share of Top 10%: 53.80%
Income Share of Bottom 50%: 9.50%
Gap Between Top 10% and Bottom 50%: 44.30%
The top 10% of Qatar’s population earns more than half the total national income even as the government affirmed the high levels of inequality in the country. Qatar has a Gini coefficient score of 58.6.
18. Burkina Faso
Income Share of Top 10%: 54.80%
Income Share of Bottom 50%: 10.40%
Gap Between Top 10% and Bottom 50%: 44.40%
Burkina Faso is a landlocked country in West Africa with a Gini coefficient score of 79. Burkina Faso ranks 18th among the countries with the widest gap between rich and poor.
17. Yemen
Income Share of Top 10%: 55.10%
Income Share of Bottom 50%: 9.90%
Gap Between Top 10% and Bottom 50%: 45.20%
Yemen is one of the poorest countries in the world and the bottom 50% population only has an income share of 9.90%, while the top 10% people have an income share of 55.10%.
16. Bahrain
Income Share of Top 10%: 10.20%
Income Share of Bottom 50%: 55.70%
Gap Between Top 10% and Bottom 50%: 45.50%
Bahrain’s income gap share between the top 10% and bottom 50% population is over 45%. With a Gini coefficient score of 88.5, Bahrain ranks among the 30 countries with the widest gap between rich and poor.
15. Oman
Income Share of Top 10%: 54.90%
Income Share of Bottom 50%: 9%
Gap Between Top 10% and Bottom 50%: 45.90%
Oman has a Gini coefficient score of 88, while the income gap share is just under 46% between the top 10% and bottom 50% population.
14. Congo
Income Share of Top 10%: 55.90%
Income Share of Bottom 50%: 9.90%
Gap Between Top 10% and Bottom 50%: 46%
Congo has one of the widest gaps between rich and poor and also has a high Gini coefficient score of 85.5.
13. Brazil
Income Share of Top 10%: 56.80%
Income Share of Bottom 50%: 9%
Gap Between Top 10% and Bottom 50%: 47.80%
Brazil has one of the highest Gini coefficient scores, which is around 89.2. With an income share gap of 47.80% between the top 10% and bottom 50% population, Brazil ranks 13th among the countries with the widest gap between rich and poor.
12. Angola
Income Share of Top 10%: 58%
Income Share of Bottom 50%: 9%
Gap Between Top 10% and Bottom 50%: 49%
Angola’s Gini coefficient is continuing to rise despite already being relatively high, according to the World Bank. Angola’s top 10% population has an income share of 58% compared to a mere 9% income share of the bottom 50%.
11. Zimbabwe
Income Share of Top 10%: 59%
Income Share of Bottom 50%: 9.20%
Gap Between Top 10% and Bottom 50%: 49.80%
Inequality in Zimbabwe continues to widen as poverty keeps on rising as well.
10. Botswana
Income Share of Top 10%: 59.30%
Income Share of Bottom 50%: 8.10%
Gap Between Top 10% and Bottom 50%: 51.20%
Botswana ranks 10th among the countries with the widest gap between rich and poor. Botswana has a Gini coefficient score of 87.9.
9. Eswatini
Income Share of Top 10%: 59.90%
Income Share of Bottom 50%: 7.90%
Gap Between Top 10% and Bottom 50%: 52%
Eswatini is a landlocked country in Southern Africa. Eswatini has an income share difference of 52% between the top 10% and the bottom 50% population.
8. South Africa
Income Share of Top 10%: 65.40%
Income Share of Bottom 50%: 13.30%
Gap Between Top 10% and Bottom 50%: 52.10%
South Africa has one of the widest gaps between the rich and poor. The income share gap between the top 10% and the bottom 50% lies around 52.10%.
7. Chile
Income Share of Top 10%: 59%
Income Share of Bottom 50%: 6.80%
Gap Between Top 10% and Bottom 50%: 52.20%
Chile has a Gini coefficient score of 79.4 and ranks among the countries with the widest gap between rich and poor.
6. Colombia
Income Share of Top 10%: 60.60%
Income Share of Bottom 50%: 6.90%
Gap Between Top 10% and Bottom 50%: 53.70%
Colombia’s income share gap between the top 10% and bottom 50% is just under 54%, making it one of the countries with the widest gap between rich and poor.
5. Zambia
Income Share of Top 10%: 61.70%
Income Share of Bottom 50%: 7%
Gap Between Top 10% and Bottom 50%: 54.70%
Zambia ranks fifth among the countries with the widest gap between rich and poor. Zambia has a Gini coefficient score of 88.6.
4. Mozambique
Income Share of Top 10%: 64.40%
Income Share of Bottom 50%: 8.30%
Gap Between Top 10% and Bottom 50%: 56.10%
Mozambique is a country located in southeast Africa and has an income share difference of 56.10% between the top 10% and bottom 50% population.
3. Namibia
Income Share of Top 10%: 64.20%
Income Share of Bottom 50%: 6.60%
Gap Between Top 10% and Bottom 50%: 57.60%
Namibia has a Gini coefficient score of 86.8 and ranks third among the countries widest gap between rich and poor.
2. Mexico
Income Share of Top 10%: 64.60%
Income Share of Bottom 50%: 6%
Gap Between Top 10% and Bottom 50%: 58.60%
Mexico has one of the widest gaps between rich and poor. The top 10% of the population has an income share of 64.60% compared to the 6% income share of the bottom 50% people.
1. Central African Republic
Income Share of Top 10%: 74.90%
Income Share of Bottom 50%: 7.60%
Gap Between Top 10% and Bottom 50%: 67.30%
The Central African Republic has the widest gap between rich and poor. The Central African Republic’s income share gap between the top 10% and the bottom 50% is more than 67%.
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Disclosure. None. This article was originally published on Insider Monkey.