Evolution of the Global Income Inequality, Yuri Dikhanov World Bank Présenté par: Mr. Michel WARD Expert des Nations Unies

Global inequality consists of within-nation and international components Global distribution is based on 45 countries representing 5/6 of population and income Income from household surveys is augmented to Personal Consumption Expenditures National distributions converted using PPPs Quasi-exact approximation of distribution f-n (with cubic polynomials)

Assumptions for 2015 Growth rates from the 90s are maintained for (except for Africa and Eastern Europe) National distributions are frozen at the 2000 level

VARIOUS GLOBAL INEQUALITY CHARACTERISTICS changes cumul ative Gini-coefficient Theil index Theil index Income less than mean Decile ratio absolute levels Gini-coefficient Theil index Theil index Income less than mean Decile ratio

Decomposition of inequality using Theil II index Within-country inequality %25.5%25.8%30.2%33.9% Between-country inequality %74.5%74.2%69.8%66.1%

Regional composition of global income distribution, by percentile, 1970

Regional composition of global income distribution, by percentile, 2000

Regional composition of global income distribution, by percentile, 2015

Regional income distributions: example of Africa, 2000

Income transfer Assumptions: Poverty gap 39% (20.6% of world population below PPP $700) 5% of the wealthiest transfer 2.8% of their total income or 8.1% of marginal income (1.04% of world income - $350 bln. in PPP terms or $150 bln. in exchange rate terms) to cover the poverty gap; Transfer is made to the people below PPP $1,400, with marginal rate 19.6%.

Ends of the global distribution, before and after the hypothetical transfer