The discourse on inequality continues to receive attention among world development leaders in view of the increasing levels and its characterisation across different geographical areas. According to the 2022 World Inequality Report, the richest 10 percent of the world population owns 52 percent of global income, while the bottom 50 percent of the population owns 8.5 percent of global income. The disparity is even greater for the distribution of wealth. While the richest 10 percent of the world population owns 76 percent of all wealth, the poorest 50 percent own just two percent of the wealth. Inequality has increased over time because these current levels of inequality are far higher than pre-1980 levels. There is heterogeneity in increases in inequality for countries that in the recent past have been experiencing these increases.
Economic (wealth, income, assets, and consumption expenditure) inequality creates disparities in the living conditions of persons with different demographic, social, and geographical characteristics. These are the differences that people observe between their lifestyles and those of their neighbours and acquaintances. Economic inequality increases crime and exacerbates existing inequality in social opportunities such as quality healthcare and education, and decent employment and can negatively impinge on poverty reduction efforts. The long-term consequences of economic inequality are the stifling of national growth and development, which could also be a precursor to conflict. It is against this backdrop that the United Nations has set to reduce inequality within and among countries as its tenth Sustainable Development Goal (SDG 10)
