The Global Inequality Gap, and How It's Changed Over 200 Years
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The Global Inequality Gap, and How It’s Changed Over 200 Years

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The Global Inequality Gap, and How It's Changed Over 200 Years

How the Global Inequality Gap Has Changed In 200 Years

What makes a person healthy, wealthy, and wise? The UN’s Human Development Index (HDI) measures this by one’s life expectancy, average income, and years of education.

However, the value of each metric varies greatly depending on where you live. Today’s data visualization from Max Roser at Our World in Data summarizes five basic dimensions of development across countries—and how our average standards of living have evolved since 1800.

Health: Mortality Rates and Life Expectancy

Child mortality rates and life expectancy at birth are telltale signs of a country’s overall standard of living, as they indicate a population’s ability to access healthcare services.

Iceland stood at the top of these ranks in 2017, with only a 0.21% mortality rate for children under five years old. On the other end of the spectrum, Somalia had the highest child mortality rate of 12.7%—over three times the current global average.

While there’s a stark contrast between the best and worst performing countries, it’s clear that even Somalia has made significant strides since 1800. At that time, the global average child mortality rate was a whopping 43%.

Lower child mortality is also tied to higher life expectancy. In 1800, the average life expectancy was that of today’s millennial—only 29 years old:

Life Expectancy in 1800 by Continent

Today, the global average has shot up to 72.2 years, with areas like Japan exceeding this benchmark by more than a decade.

Education: Mean and Expected Years of Schooling

Education levels are measured in two distinct ways:

  • Mean years: the average number of years a person aged 25+ receives in their lifetime
  • Expected years: the total years a 2-year old child is likely to spend in school

In the 1800s, the mean and expected years of education were both less than a year—only 78 days to be precise. Low attendance rates occurred because children were expected to work during harvests, or contracted long-term illnesses that kept them at home.

Since then, education levels have drastically improved:

 Mean Years of SchoolingExpected Years of schooling 
HighestGermany 🇩🇪: 14.1 yearsAustralia 🇦🇺: 22.9 years
LowestBurkina Faso 🇧🇫: 1.5 yearsSouth Sudan 🇸🇸: 4.9 years
Global Average8.4 years12.7 years

Research shows that investing in education can greatly narrow the inequality gap. Just one additional year of school can:

  • Raise a person’s income by up to 10%
  • Raise average annual GDP growth by 0.37%
  • Reduce the probability of motherhood by 7.3%
  • Reduce the likelihood of child marriage by >5 percentage points
  • Source

    Education has a strong correlation with individual wealth, which cascades into national wealth. Not surprisingly, average income has ballooned significantly in two centuries as well.

    Wealth: Average GDP Per Capita

    Global inequality levels are the most stark when it comes to GDP per capita. While the U.S. stands at $54,225 per person in 2017, resource-rich Qatar brings in more than double this amount—an immense $116,936 per person.

    The global average GDP per capita is $15,469, but inequality heavily skews the bottom end of these values. In the Central African Republic, GDP per capita is only $661 today—similar to the average income two hundred years ago.

    A Virtuous Cycle

    These measures of development clearly feed into one another. Rising life expectancies are an indication of a society’s growing access to healthcare options. Compounded with more years of education, especially for women, this has had a ripple effect on declining fertility rates, contributing to higher per capita incomes.

    People largely agree on what goes into human well-being: life, health, sustenance, prosperity, peace, freedom, safety, knowledge, leisure, happiness… If they have improved over time, that, I submit, is progress.

    Steven Pinker

    As technology accelerates the pace of change across these indicators, will the global inequality gap narrow more, or expand even wider?

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Energy

What is the Cost of Europe’s Energy Crisis?

As European gas prices soar, countries are introducing policies to try and curb the energy crisis.

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What is the Cost of Europe’s Energy Crisis?

This was originally posted on Elements. Sign up to the free mailing list to get beautiful visualizations on natural resource megatrends in your email every week.

Europe is scrambling to cut its reliance on Russian fossil fuels.

As European gas prices soar eight times their 10-year average, countries are introducing policies to curb the impact of rising prices on households and businesses. These include everything from the cost of living subsidies to wholesale price regulation. Overall, funding for such initiatives has reached $276 billion as of August.

With the continent thrown into uncertainty, the above chart shows allocated funding by country in response to the energy crisis.

The Energy Crisis, In Numbers

Using data from Bruegel, the below table reflects spending on national policies, regulation, and subsidies in response to the energy crisis for select European countries between September 2021 and July 2022. All figures in U.S. dollars.

CountryAllocated Funding Percentage of GDPHousehold Energy Spending,
Average Percentage
🇩🇪 Germany$60.2B1.7%9.9%
🇮🇹 Italy$49.5B2.8%10.3%
🇫🇷 France$44.7B1.8%8.5%
🇬🇧 U.K.$37.9B1.4%11.3%
🇪🇸 Spain$27.3B2.3%8.9%
🇦🇹 Austria$9.1B2.3%8.9%
🇵🇱 Poland$7.6B1.3%12.9%
🇬🇷 Greece$6.8B3.7%9.9%
🇳🇱 Netherlands$6.2B0.7%8.6%
🇨🇿 Czech Republic$5.9B2.5%16.1%
🇧🇪 Belgium$4.1B0.8%8.2%
🇷🇴 Romania$3.8B1.6%12.5%
🇱🇹 Lithuania$2.0B3.6%10.0%
🇸🇪 Sweden$1.9B0.4%9.2%
🇫🇮 Finland$1.2B0.5%6.1%
🇸🇰 Slovakia$1.0B1.0%14.0%
🇮🇪 Ireland$1.0B0.2%9.2%
🇧🇬 Bulgaria$0.8B1.2%11.2%
🇱🇺 Luxembourg$0.8B1.1%n/a
🇭🇷 Croatia$0.6B1.1%14.3%
🇱🇻 Lativia$0.5B1.4%11.6%
🇩🇰 Denmark$0.5B0.1%8.2%
🇸🇮 Slovenia$0.3B0.5%10.4%
🇲🇹 Malta$0.2B1.4%n/a
🇪🇪 Estonia$0.2B0.8%10.9%
🇨🇾 Cyprus$0.1B0.7%n/a

Source: Bruegel, IMF. Euro and pound sterling exchange rates to U.S. dollar as of August 25, 2022.

Germany is spending over $60 billion to combat rising energy prices. Key measures include a $300 one-off energy allowance for workers, in addition to $147 million in funding for low-income families. Still, energy costs are forecasted to increase by an additional $500 this year for households.

In Italy, workers and pensioners will receive a $200 cost of living bonus. Additional measures, such as tax credits for industries with high energy usage were introduced, including a $800 million fund for the automotive sector.

With energy bills predicted to increase three-fold over the winter, households in the U.K. will receive a $477 subsidy in the winter to help cover electricity costs.

Meanwhile, many Eastern European countries—whose households spend a higher percentage of their income on energy costs— are spending more on the energy crisis as a percentage of GDP. Greece is spending the highest, at 3.7% of GDP.

Utility Bailouts

Energy crisis spending is also extending to massive utility bailouts.

Uniper, a German utility firm, received $15 billion in support, with the government acquiring a 30% stake in the company. It is one of the largest bailouts in the country’s history. Since the initial bailout, Uniper has requested an additional $4 billion in funding.

Not only that, Wien Energie, Austria’s largest energy company, received a €2 billion line of credit as electricity prices have skyrocketed.

Deepening Crisis

Is this the tip of the iceberg? To offset the impact of high gas prices, European ministers are discussing even more tools throughout September in response to a threatening energy crisis.

To reign in the impact of high gas prices on the price of power, European leaders are considering a price ceiling on Russian gas imports and temporary price caps on gas used for generating electricity, among others.

Price caps on renewables and nuclear were also suggested.

Given the depth of the situation, the chief executive of Shell said that the energy crisis in Europe would extend beyond this winter, if not for several years.

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Politics

Mapped: Which Countries Still Have a Monarchy?

Beyond the 15 nations under the British monarchy, 28 other countries still have a ruling monarch. Here’s a look at the world’s monarchies.

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monarchies

Mapped: Which Countries Still Have a Monarchy?

In the wake of Queen Elizabeth II’s death, the question of monarchy is brought sharply into focus.

However, a surprising number of countries have ruling monarchs, and in this visual we break down the kinds of royal leadership across the 43 countries that still have them.

Types of Monarchies

A monarch in the simplest sense is a country’s king, queen, emir, or sultan, and so on. But before diving in, it’s important to break down the distinctions between the types of monarchies that exist today. Generally, there are four kinds:

① Constitutional Monarchy

The monarch divides power with a constitutionally founded government. In this situation, the monarch, while having ceremonial duties and certain responsibilities, does not have any political power. For example, the UK’s monarch must sign all laws to make them official, but has no power to change or reject new laws.

Here are some examples of countries with constitutional monarchies:

🇯🇵  Japan
🇬🇧  United Kingdom
🇩🇰  Denmark

② Absolute Monarchy

The monarch has full and absolute political power. They can amend, reject, or create laws, represent the country’s interests abroad, appoint political leaders, and so on.

Here are some examples of countries with absolute monarchies:

🇸🇿  Eswatini
🇸🇦  Saudi Arabia
🇻🇦  Vatican City

③ Federal Monarchy

The monarch serves an overall figurehead of the federation of states which have their own governments, or even monarchies, ruling them.

Here are some examples of countries with federal monarchies:

🇦🇪  UAE
🇲🇾  Malaysia

Malaysia is a unique form of federal monarchy. Every five years, each state’s royal leaders choose amongst themselves who will be the monarch, or the Yang di-Pertuan Agong, of Malaysia and the respective states. Furthermore, the monarchy is also constitutional, allowing a democratically elected body to govern.

④ Mixed Monarchy

This is a situation wherein an absolute monarch may divide powers in distinct ways specific to the country.

Here are some examples of countries with mixed monarchies:

🇯🇴  Jordan
🇱🇮  Liechtenstein
🇲🇦  Morocco

Interestingly, Liechtenstein is the only European monarchy that still practises strict agnatic primogeniture. Under agnatic primogeniture, the degree of kinship is determined by tracing descent from the nearest common ancestor through male ancestors.

Kings, Queens, Emperors, and Sultans Around the Globe

Now let’s break down the different monarchies country by country:

CountryType of MonarchyTitle of Head of StateMonarchTitle of Head of Government
🇦🇩 AndorraConstitutionalCo-PrincesJoan-Enric Vives, Emmanuel MacronPrime Minister
🇦🇬 Antigua and BarbudaConstitutionalKingCharles IIIPrime Minister
🇦🇺 AustraliaConstitutionalKingCharles IIIPrime Minister
🇧🇭 BahrainMixedKingHamad bin Isa Al KhalifaPrime Minister
🇧🇪 BelgiumConstitutionalKing PhilippePrime Minister
🇧🇿 BelizeConstitutionalKingCharles IIIPrime Minister
🇧🇹 BhutanConstitutionalKingJigme Khesar Namgyel WangchuckPrime Minister
🇧🇳 Brunei DarussalamAbsoluteSultanHassanal BolkiahSultan
🇰🇭 CambodiaConstitutionalKingNorodom SihamoniPrime Minister
🇨🇦 CanadaConstitutionalKingCharles IIIPrime Minister
🇩🇰 DenmarkConstitutionalQueenMargrethe IIPrime Minister
🇸🇿 EswatiniAbsoluteKingMswati IIIPrime Minister
🇬🇩 GrenadaConstitutionalKingCharles IIIPrime Minister
🇯🇲 JamaicaConstitutionalKingCharles IIIPrime Minister
🇯🇵 JapanConstitutionalEmperorNaruhitoPrime Minister
🇯🇴 JordanMixedKingAbdullah IIPrime Minister
🇰🇼 KuwaitMixedEmirNawaf Al-Ahmad Al-Jaber Al-SabahPrime Minister
🇱🇸 LesothoConstitutionalKingLetsie IIIPrime Minister
🇱🇮 Liechtenstein MixedSovereign PrinceHans-Adam IIPrime Minister
🇱🇺 LuxembourgConstitutionalGrand DukeHenriPrime Minister
🇲🇾 MalaysiaConstitutional & FederalYang di-Pertuan AgongAbdullahPrime Minister
🇲🇨 MonacoMixedSovereign PrinceAlbert IIMinister of State
🇲🇦 MoroccoMixedKingMohammed VIPrime Minister
🇳🇱 NetherlandsConstitutionalKingWillem-AlexanderPrime Minister
🇳🇿 New ZealandConstitutionalKingCharles IIIPrime Minister
🇳🇴 NorwayConstitutionalKingHarald VPrime Minister
🇴🇲 OmanAbsoluteSultanHaitham bin TarikSultan
🇵🇬 Papua New GuineaConstitutionalKingCharles IIIPrime Minister
🇶🇦 QatarMixedEmirTamim bin Hamad Al ThaniPrime Minister
🇰🇳 Saint Kitts and NevisConstitutionalKingCharles IIIPrime Minister
🇱🇨 Saint LuciaConstitutionalKingCharles IIIPrime Minister
🇻🇨 Saint Vincent and the GrenadinesConstitutionalKingCharles IIIPrime Minister
🇸🇦 Saudi ArabiaAbsoluteKingSalmanPrime Minister
🇸🇧 Solomon IslandsConstitutionalKingCharles IIIPrime Minister
🇪🇸 SpainConstitutionalKingFelipe VIPresident of the Government
🇸🇪 SwedenConstitutionalKingCarl XVI GustafPrime Minister
🇹🇭 ThailandConstitutionalKingRama XPrime Minister
🇧🇸 The BahamasConstitutionalKingCharles IIIPrime Minister
🇹🇴 TongaConstitutionalKingTupou VIPrime Minister
🇹🇻 TuvaluConstitutionalKingCharles IIIPrime Minister
🇦🇪 UAEFederalPresidentMohamed bin Zayed Al NahyanPrime Minister
🇬🇧 UKConstitutionalKingCharles IIIPrime Minister
🇻🇦 Vatican CityAbsolutePopeFrancisPresident of the Pontifical Commission

Constitutional monarchies are undoubtedly the most popular form of royal leadership in the modern era⁠, making up close to 70% of all monarchies. This situation allows for democratically elected governments to rule the country, while the monarch performs ceremonial duties.

Most monarchs are hereditary, inheriting their position by luck of their birth, but interestingly, French president, Emmanuel Macron, technically serves as a Co-Prince of Andorra.

Another unique case is the Vatican’s Pope Francis, who has absolute power in the small independent city⁠—he gained his role thanks to an election process known as a papal conclave.

The Role of Monarchies

One of the most notable and famous ruling monarchies is the United Kingdom’s House of Windsor⁠—also known as Queen Elizabeth II’s family. King Charles III has now ascended to the country’s throne, making him head of state in 15 nations total, including Canada, Australia, and New Zealand.

Many see the benefit in having a stable and consistent form of tradition and decorum at the country’s head of state.

“The Crown is an integral part of the institution of Parliament. The Queen [now King] plays a constitutional role in opening and dissolving Parliament and approving Bills before they become law.” – British Parliament

Japan’s royal family has been a prime example of stability, having reigned in the country for more than 2,600 years under the same hereditary line.

Critiques and the Future of Monarchy

Some claim, however, that there is no function of monarchy in the modern day, and complaints of monarchies’ immense wealth and power are rampant.

For example, according to the Dutch government, King Willem-Alexander’s budget for 2022, funded by the state and thus, taxpayers, comes out to more than €48 million.

Beyond tax dollars, with absolute monarchies there is typically a lack of political freedoms and certain rights. Saudi Arabia, for example, has no national elections. Rather its king, Salman bin Abdulaziz Al Saud, stays in power for life, appoints the cabinet himself, and passes laws by royal decree.

The death of Queen Elizabeth, though, may bring about change though for many of the world’s royally-governed. Since Barbados’ removal of her as head of state in 2021, six other Caribbean nations have expressed the desire to do the same, namely:

🇧🇿  Belize
🇧🇸  The Bahamas
🇯🇲  Jamaica
🇬🇩  Grenada
🇦🇬  Antigua and Barbuda
🇰🇳  St. Kitts and Nevis

The future of monarchy in the 21st century is certainly not a guarantee.

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