Global income inequality: Africa a key player

Imraan Valodia, Pro Vice-Chancellor: Climate, Sustainability and Inequality and Director: Southern Centre for Inequality Studies., University of the Witwatersrand, writing for The Conversation, highlights that income inequality between countries has been falling since the 2000s, but income inequality within countries is rising.

Global inequality is the sum of inequality between countries, weighted by countries' population, and inequality within countries.

Reductions in global inequality came "at the cost" of increased within-country disparities. According to Valodia, it is essential to comprehend these historical patterns in income inequality as well as how political variables influence inequality results over time.

The portion of global income going to the wealthiest has not increased since the global financial crisis of 2008. Compared to the time prior to the financial crisis, when the share of high earners rose significantly, this is a change. According to Valodia's assessment, the wealthiest people have been increasing their incomes at a high rate in recent years.

According to Valodia, given China's current slowdown in economic growth, income trends in Africa may have an impact on the pattern of global income inequality in the future. He contends that more "Chinas" are necessary if global inequality is to keep declining. India, the nation with the largest population in the world right now, is one of them.

However, the other nations are populated African nations. Valodia argues that in the absence of economic growth in Africa, there will be no reduction in global inequality and maybe an increase, ushering in the fourth global period. This demonstrates the importance of African economic growth in determining the course of global poverty and inequality in the twenty-first century.