Income inequality
average level of inequality increased by 4 percent during the period, while the index of globalization increased by 42 percent. The correlation between the two measures is above 70 percent. 16 This strong correlation for all countries holds also when high-income (developed) and developing countries are considered separately. The correlations between the two indicators in each group are 68 percent and 67 percent, respectively (see Figure 3.7 and Figure 3.8). But in high-income economies, there is an already high level of globalization at
Average Gini index
Globalization Index
Figure 3.7. Income inequality and globalization across developing countries, 1992-2005
Source: UNDP calculations using data from Solt (2009).
Average Gini index
Globalization Index
Figure 3.8. Income inequality and globalization in high-income (developed) countries, 1992-2005
Source: UNDP calculations using data from Solt (2009).
Humanity Divided: Confronting Inequality in Developing Countries 81