1. Evolution of the Global Income Inequality, 1970-2015 Yuri Dikhanov World Bank Présenté par: Mr. Michel WARD Expert des Nations Unies

2. 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)

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

4. VARIOUS GLOBAL INEQUALITY CHARACTERISTICS changes 1970-80 1980- 90 1990- 200 02000-15 1970-2000 cumul ative Gini-coefficient0.0140.004-0.001-0.0310.016 Theil index 10.057-0.032-0.043-0.109-0.018 Theil index 20.0400.0300.021-0.0930.090 Income less than mean0.0100.0230.027-0.0150.060 Decile ratio11.300.19-0.41-7.8711.08 absolute levels 19701980199020002015 Gini-coefficient0.6680.6810.6850.6840.653 Theil index 10.9961.0531.0210.9780.869 Theil index 20.8220.8620.8910.9120.819 Income less than mean0.7050.7160.7380.7650.751 Decile ratio92.28103.58103.77103.3695.49

6. Decomposition of inequality using Theil II index 19701980199020002015 Within-country inequality 0.211 0.220 0.230 0.275 0.278 25.7%25.5%25.8%30.2%33.9% Between-country inequality 0.610 0.642 0.661 0.637 0.541 74.3%74.5%74.2%69.8%66.1%

10. Regional composition of global income distribution, by percentile, 1970

11. Regional composition of global income distribution, by percentile, 2000

12. Regional composition of global income distribution, by percentile, 2015

15. Regional income distributions: example of Africa, 2000

16. 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%.

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