In economics, the Gini coefficient (/ ˈ dʒ iː n i / JEE-nee), sometimes called Gini index, or Gini ratio, is a measure of statistical dispersion intended to represent the income or wealth distribution of a nation's residents, and is the most commonly used measurement of inequality. To edit an existing country group, click on the Edit link in the current selection panel in right side. Now you can add new countries or remove the countries to an existing customized group.
Atkinson has proposed another class of inequality measures that are used from time to time. This ranks distributions solely according to total income.
You have clicked on a link to a page that is not part of the beta version of the new worldbank. Will you take two minutes to complete a brief survey that will help us to improve our website? Thank you for agreeing to provide feedback on the new version of worldbank. Thank you for participating in this survey! Your feedback is very helpful to us as we work to improve the site functionality on worldbank. Working for a World Free of Poverty. Understanding Poverty Topics Poverty.
Income Growth of the Bottom 40 Bottom 40 Characteristics. Income Inequality - Income Distribution. For example, freedom of movement for workers in the European Union means that people can move freely between member states to live, work, study or retire in another country.
Globalization is associated with a dramatic rise in international education. More and more students are seeking higher education in foreign countries and many international students now consider overseas study a stepping-stone to permanent residency within a country.
A transnational marriage is a marriage between two people from different countries. A variety of special issues arise in marriages between people from different countries, including those related to citizenship and culture, which add complexity and challenges to these kinds of relationships. In an age of increasing globalization, where a growing number of people have ties to networks of people and places across the globe, rather than to a current geographic location, people are increasingly marrying across national boundaries.
Transnational marriage is a by-product of the movement and migration of people. Before electronic communications, long-distance communications relied on mail. Speed of global communications was limited by the maximum speed of courier services especially horses and ships until the midth century.
The electric telegraph was the first method of instant long-distance communication. For example, before the first transatlantic cable, communications between Europe and the Americas took weeks because ships had to carry mail across the ocean.
The first transatlantic cable reduced communication time considerably, allowing a message and a response in the same day. Lasting transatlantic telegraph connections were achieved in the — The first wireless telegraphy transmitters were developed in The Internet has been instrumental in connecting people across geographical boundaries.
For example, Facebook is a social networking service which has more than 1. Globalization can be spread by Global journalism which provides massive information and relies on the internet to interact, "makes it into an everyday routine to investigate how people and their actions, practices, problems, life conditions etc.
One index of globalization is the KOF Index of Globalization , which measures three important dimensions of globalization: However, newer indices attempt to measure globalization in more general terms, including variables related to political, social, cultural, and even environmental aspects of globalization. Reactions to processes contributing to globalization have varied widely with a history as long as extraterritorial contact and trade.
Philosophical differences regarding the costs and benefits of such processes give rise to a broad-range of ideologies and social movements. Proponents of economic growth , expansion and development , in general, view globalizing processes as desirable or necessary to the well-being of human society.
Antagonists view one or more globalizing processes as detrimental to social well-being on a global or local scale;  this includes those who social or natural sustainability of long-term and continuous economic expansion, the social structural inequality caused by these processes, and the colonial , imperialistic , or hegemonic ethnocentrism , cultural assimilation and cultural appropriation that underlie such processes.
Globalization tends to bring people into contact with foreign people and cultures. Xenophobia is the fear of that which is perceived to be foreign or strange. Critiques of globalization generally stem from discussions surrounding the impact of such processes on the planet as well as the human costs. They challenge directly traditional metrics, such as GDP, and look to other measures, such as the Gini coefficient  or the Happy Planet Index ,  and point to a "multitude of interconnected fatal consequences—social disintegration, a breakdown of democracy, more rapid and extensive deterioration of the environment, the spread of new diseases, increasing poverty and alienation"  which they claim are the unintended consequences of globalization.
Others point out that, while the forces of globalization have led to the spread of western-style democracy, this has been accompanied by an increase in inter-ethnic tension and violence as free market economic policies combine with democratic processes of universal suffrage as well as an escalation in militarization to impose democratic principles and as a means to conflict resolution. A study by Peer Fis and Paul Hirsch found a large increase in articles negative towards globalization in the years prior.
In , negative articles outpaced positive articles by two to one. This increase occurred during a period when the total number of articles concerning globalization nearly doubled. A number of international polls have shown that residents of Africa and Asia tend to view globalization more favorably than residents of Europe or North America.
In , Philip Gordon stated that "a clear majority of Europeans believe that globalization can enrich their lives, while believing the European Union can help them take advantage of globalization's benefits while shielding them from its negative effects. Residents of the EU did not appear to feel threatened by globalization in Social spending was much higher than in the US. At the same time, discourse on globalization, which began in the financial community before shifting to a heated debate between proponents and disenchanted students and workers.
Polarization increased dramatically after the establishment of the WTO in ; this event and subsequent protests led to a large-scale anti-globalization movement.
Less educated workers, who were more likely to compete with immigrants and workers in developing countries, tended to be opponents. The situation changed after the financial crisis of Respondents with high school education also became more opposed. According to Takenaka Heizo and Chida Ryokichi, as of [update] there was a perception in Japan that the economy was "Small and Frail".
However, Japan was resource-poor and used exports to pay for its raw materials. Anxiety over their position caused terms such as internationalization and globalization to enter everyday language.
However, Japanese tradition was to be as self-sufficient as possible, particularly in agriculture. Many in developing countries see globalization as a positive force that lifts them out of poverty.
Opponents consider governments as agents of neo-colonialism that are subservient to multinational corporations. The literature analysing the economics of free trade is extremely rich with extensive work having been done on the theoretical and empirical effects. Though it creates winners and losers, the broad consensus among economists is that free trade is a large and unambiguous net gain for society. Quoting Harvard economics professor N.
Gregory Mankiw , "Few propositions command as much consensus among professional economists as that open world trade increases economic growth and raises living standards. In the book The End of Poverty , Jeffrey Sachs discusses how many factors can affect a country's ability to enter the world market, including government corruption ; legal and social disparities based on gender, ethnicity, or caste; diseases such as AIDS and malaria ; lack of infrastructure including transportation, communications, health, and trade ; unstable political landscapes; protectionism ; and geographic barriers.
Economic growth is conventionally measured using indicators such as GDP and GNI that do not accurately reflect the growing disparities in wealth. Economist Paul Krugman is another staunch supporter of globalization and free trade with a record of disagreeing with many critics of globalization.
He argues that many of them lack a basic understanding of comparative advantage and its importance in today's world. The flow of migrants to advanced economic countries has been claimed to provide a means through which global wages converge. An IMF study noted a potential for skills to be transferred back to developing countries as wages in those a countries rise.
Technological innovations or technological transfer is conjectured to benefit most the developing and least developing countries LDCs , as for example in the adoption of mobile phones. There has been a rapid economic growth in Asia after embracing market orientation -based economic policies that encourage private property rights , free enterprise and competition.
Like this, the British economic journalist Martin Wolf says that incomes of poor developing countries, with more than half the world's population, grew substantially faster than those of the world's richest countries that remained relatively stable in its growth, leading to reduced international inequality and the incidence of poverty.
Certain demographic changes in the developing world after active economic liberalization and international integration resulted in rising general welfare and, hence, reduced inequality. According to Wolf, in the developing world as a whole, life expectancy rose by four months each year after and infant mortality rate declined from per thousand in to 58 in due to improvements in standards of living and health conditions.
Furthermore, the reduction in fertility rate in the developing world as a whole from 4. Thus, despite seemingly unequal distribution of income within these developing countries, their economic growth and development have brought about improved standards of living and welfare for the population as a whole.
Per capita gross domestic product GDP growth among post globalizing countries accelerated from 1. This acceleration in growth seems even more remarkable given that the rich countries saw steady declines in growth from a high of 4. Also, the non-globalizing developing countries seem to fare worse than the globalizers, with the former's annual growth rates falling from highs of 3.
This rapid growth among the globalizers is not simply due to the strong performances of China and India in the s and s—18 out of the 24 globalizers experienced increases in growth, many of them quite substantial. The globalization of the late 20th and early 21st centuries has led to the resurfacing of the idea that the growth of economic interdependence promotes peace.
Some opponents of globalization see the phenomenon as a promotion of corporate interests. Globalization allows corporations to outsource manufacturing and service jobs from high cost locations, creating economic opportunities with the most competitive wages and worker benefits. While it is true that free trade encourages globalization among countries, some countries try to protect their domestic suppliers.
The main export of poorer countries is usually agricultural productions. Larger countries often subsidize their farmers e. Democratic globalization is a movement towards an institutional system of global democracy that would give world citizens a say in political organizations. This would, in their view, bypass nation-states, corporate oligopolies, ideological Non-governmental organizations NGO , political cults and mafias.
One of its most prolific proponents is the British political thinker David Held. Advocates of democratic globalization argue that economic expansion and development should be the first phase of democratic globalization, which is to be followed by a phase of building global political institutions.
Francesco Stipo , Director of the United States Association of the Club of Rome , advocates unifying nations under a world government , suggesting that it "should reflect the political and economic balances of world nations. A world confederation would not supersede the authority of the State governments but rather complement it, as both the States and the world authority would have power within their sphere of competence".
Global civics suggests that civics can be understood, in a global sense, as a social contract between global citizens in the age of interdependence and interaction. The disseminators of the concept define it as the notion that we have certain rights and responsibilities towards each other by the mere fact of being human on Earth. An early incarnation of this sentiment can be found in Socrates , whom Plutarch quoted as saying: Baha'i-inspired author Meyjes, while favoring the single world community and emergent global consciousness, warns of globalization  as a cloak for an expeditious economic, social, and cultural Anglo-dominance that is insufficiently inclusive to inform the emergence of an optimal world civilization.
He proposes a process of " universalization " as an alternative. Cosmopolitanism is the proposal that all human ethnic groups belong to a single community based on a shared morality. A person who adheres to the idea of cosmopolitanism in any of its forms is called a cosmopolitan or cosmopolite. The cosmopolitan community is one in which individuals from different places e. For instance, Kwame Anthony Appiah suggests the possibility of a cosmopolitan community in which individuals from varying locations physical, economic, etc.
One example is the security cooperation between the United States and the former Soviet Union after the end of the Cold War, which astonished international society. The most recent debate around nuclear energy and the non-alternative coal-burning power plants constitutes one more consensus on what not to do.
Thirdly, significant achievements in IC can be observed through development studies. Anti-globalization, or counter-globalization,  consists of a number of criticisms of globalization but, in general, is critical of the globalization of corporate capitalism. Opponents of globalization argue that there is unequal power and respect in terms of international trade between the developed and underdeveloped countries of the world. In The Revolt of the Elites and the Betrayal of Democracy , Christopher Lasch analyzes  the widening gap between the top and bottom of the social composition in the United States.
For him, our epoch is determined by a social phenomenon: According to Lasch, the new elites, i. In this, they oppose the old bourgeoisie of the nineteenth and twentieth centuries, which was constrained by its spatial stability to a minimum of rooting and civic obligations.
Globalization, according to the sociologist, has turned elites into tourists in their own countries. The de-nationalisation of business enterprise tends to produce a class who see themselves as "world citizens, but without accepting Their ties to an international culture of work, leisure, information — make many of them deeply indifferent to the prospect of national decline.
Instead of financing public services and the public treasury, new elites are investing their money in improving their voluntary ghettos: They have "withdrawn from common life". Composed of those who control the international flows of capital and information, who preside over philanthropic foundations and institutions of higher education, manage the instruments of cultural production and thus fix the terms of public debate. So, the political debate is limited mainly to the dominant classes and political ideologies lose all contact with the concerns of the ordinary citizen.
The result of this is that no one has a likely solution to these problems and that there are furious ideological battles on related issues. However, they remain protected from the problems affecting the working classes: One of the most infamous tactics of the movement is the Battle of Seattle in , where there were protests against the World Trade Organization's Third Ministerial Meeting.
Capital markets have to do with raising and investing money in various human enterprises. Increasing integration of these financial markets between countries leads to the emergence of a global capital marketplace or a single world market. In the long run, increased movement of capital between countries tends to favor owners of capital more than any other group; in the short run, owners and workers in specific sectors in capital-exporting countries bear much of the burden of adjusting to increased movement of capital.
Those opposed to capital market integration on the basis of human rights issues are especially disturbed by the various abuses which they think are perpetuated by global and international institutions that, they say, promote neoliberalism without regard to ethical standards. In light of the economic gap between rich and poor countries, movement adherents claim free trade without measures in place to protect the under-capitalized will contribute only to the strengthening the power of industrialized nations often termed the "North" in opposition to the developing world's "South".
Corporatist ideology, which privileges the rights of corporations artificial or juridical persons over those of natural persons , is an underlying factor in the recent rapid expansion of global commerce. A related contemporary ideology, consumerism , which encourages the personal acquisition of goods and services, also drives globalization. Concern over the treatment of consumers by large corporations has spawned substantial activism, and the incorporation of consumer education into school curricula.
Social activists hold materialism is connected to global retail merchandizing and supplier convergence , war , greed, anomie , crime , environmental degradation, and general social malaise and discontent.
One variation on this topic is activism by postconsumers , with the strategic emphasis on moving beyond addictive consumerism. The global justice movement is the loose collection of individuals and groups—often referred to as a " movement of movements "—who advocate fair trade rules and perceive current institutions of global economic integration as problems. Those involved, however, frequently deny that they are anti-globalization , insisting that they support the globalization of communication and people and oppose only the global expansion of corporate power.
Many nongovernmental organizations have now arisen to fight these inequalities that many in Latin America, Africa and Asia face. A few very popular and well known non-governmental organizations NGOs include: They often create partnerships where they work towards improving the lives of those who live in developing countries by building schools, fixing infrastructure, cleaning water supplies, purchasing equipment and supplies for hospitals, and other aid efforts.
The economies of the world have developed unevenly, historically, such that entire geographical regions were left mired in poverty and disease while others began to reduce poverty and disease on a wholesale basis.
From around through at least , the GDP gap, while still wide, appeared to be closing and, in some more rapidly developing countries , life expectancies began to rise.
Overall equality across humanity, considered as individuals, has improved very little. Within the decade between and , income inequality grew even in traditionally egalitarian countries like Germany, Sweden and Denmark. With a few exceptions—France, Japan, Spain—the top 10 percent of earners in most advanced economies raced ahead, while the bottom 10 percent fell further behind. Critics of globalization argue that globalization results in weak labor unions: Unions become less effective and workers their enthusiasm for unions when membership begins to decline.
Examples include quarrying , salvage, and farm work as well as trafficking, bondage, forced labor, prostitution and pornography. Women often participate in the workforce in precarious work , including export-oriented employment. Evidence suggests that while globalization has expanded women's access to employment, the long-term goal of transforming gender inequalities remains unmet and appears unattainable without regulation of capital and a reorientation and expansion of the state's role in funding public goods and providing a social safety net.
In , a study published by the IMF posited that neoliberalism , the ideological backbone of contemporary globalized capitalism, has been "oversold", with the benefits of neoliberal policies being "fairly difficult to establish when looking at a broad group of countries" and the costs, most significantly higher income inequality within nations, "hurt the level and sustainability of growth.
Beginning in the s, opposition arose to the idea of a world government, as advocated by organizations such as the World Federalist Movement WFM.
Those who oppose global governance typically do so on objections that the idea is unfeasible, inevitably oppressive, or simply unnecessary. Such reasoning dates back to the founding of the League of Nations and, later, the United Nations. Environmentalism is a broad philosophy, ideology    and social movement regarding concerns for environmental conservation and improvement of the health of the environment.
Environmentalist concerns with globalization include issues such as global warming , climate change , global water supply and water crises , inequity in energy consumption and energy conservation , transnational air pollution and pollution of the world ocean , overpopulation , world habitat sustainability , deforestation , biodiversity and species extinction. One critique of globalization is that natural resources of the poor have been systematically taken over by the rich and the pollution promulgated by the rich is systematically dumped on the poor.
Globalization is thus leading to a type of" environmental apartheid ". In her book Ancient Futures , Norberg-Hodge claims that "centuries of ecological balance and social harmony are under threat from the pressures of development and globalization. Although globalization takes similar steps in most countries, scholars such as Hodge claim that it might not be effective to certain countries and that globalization has actually moved some countries backward instead of developing them.
A related area of concern is the pollution haven hypothesis , which posits that, when large industrialized nations seek to set up factories or offices abroad, they will often look for the cheapest option in terms of resources and labor that offers the land and material access they require see Race to the bottom. Developing countries with cheap resources and labor tend to have less stringent environmental regulations , and conversely, nations with stricter environmental regulations become more expensive for companies as a result of the costs associated with meeting these standards.
Thus, companies that choose to physically invest in foreign countries tend to re locate to the countries with the lowest environmental standards or weakest enforcement. The globalization of food production is associated with a more efficient system of food production. This is because crops are grown in countries with optimum growing conditions. This improvement causes an increase in the world's food supply which encourages improved food security.
Norway's limited crop range advocates globalization of food production and availability. The northern-most country in Europe requires trade with other countries to ensure population food demands are met. From Wikipedia, the free encyclopedia. For other uses, see Globalization disambiguation. Timeline of international trade. List of globalization-related indices. Global civics and Multiculturalism. Social inequality and International inequality.
Global warming , Climate change , and Deforestation. Civilizing mission Cosmopolitanism Deglobalization Environmental racism Franchising Free trade Global civics Global commons Global mobility Globalism Global public goods List of bilateral free-trade agreements List of globalization-related indices List of multilateral free-trade agreements Middle East and globalization Neorealism international relations North—South divide Outline of globalization Postdevelopment theory Purple economy Technocapitalism Transnational cinema Transnational citizenship Triadization United Nations Millennium Declaration Vermeer's Hat World Englishes.
Globalization, Knowledge and Society London: Globalization, knowledge, and society: History of Information Technologies.
Elon University School of Communications. Retrieved 17 August Global economy in the Asian age. University of California Press. Retrieved 3 July European Review of Economic History. The career of a concept". The Blackwell Companion to Globalization. Retrieved 7 July Oxford English Dictionary Online. Retrieved 5 November Retrieved 23 April Globalization in World History. As a result, the rankings of countries change depending on whether the index is based on household incomes or individual incomes, creating some subjectivity in its use and interpretation.
The income of the informal sector is also excluded from the measurement of income inequality using the Gini index. In agro-based subsistence-driven economies, income could exist in different forms other than money.
Countries also have different income tax regimes; regressive, proportional and progressive, with some being more redistributive than others. Additionally, the Gini index is a relative measure that fails to capture absolute differences in income.
It is possible for the Gini index of a country to rise due to increasing income inequality while the number of people living in absolute poverty is actually declining. This is because the Gini index violates the Pareto improvement principle, which says income inequality can increase with an increase in all incomes in a given society.
Thus, although the level of income inequality has increased, the Gini index fails to capture the fact that absolute levels of income have also increased. Similarly, the Gini index could reflect a lower level of income inequality in a scenario where there is a decrease in all incomes in a given society. Furthermore, two countries could have different income distributions but the same Gini index. Consequently, as a basis for ranking the differences in income inequality between countries, the Gini index could be misleading.
The index does not capture social benefits or interventions that bridge inequality between rich and poor. The Gini index also does not capture social benefits or other interventions aimed at bridging inequality between rich and poor.
Subsidised housing, healthcare, education and social grants for the vulnerable are measures that subsidise household incomes, reducing income inequality to some extent.
Demographic changes or characteristics of the population are not reflected by the Gini index.
New York City, NY:
Johns Hopkins University Press. This entry shows GDP on a purchasing power parity basis divided by population as of 1 July for the same year.