By Jonathan Power
December 26th 2017
Every so often reports emerge that attempt to measure which are the best countries to live in. The Nordic countries plus New Zealand, Holland and Switzerland, usually come out top. Sweden is number one just for the sheer stability of life and security. Denmark is seen as the most agreeable place to live. The highest rate of longevity is found in Japan. The best schools are in Finland, New Zealand and Canada. Political and press freedom put the Nordics at the top of the league.
Last month, the Legatum Institute based in London published a report looking at inequality. Its timing could not be more perfect with the US Congress last week passing President Donald Trump’s tax bill which increases inequality by a substantial amount.
In 2013 the French economist, Thomas Piketty, published his blockbuster book, “Capital in the twenty-first century”, arguing that inequality was steadily increasing. There was wide acclaim, and quite a bit of criticism. The debate over the book raged in the serious newspapers and journals for many months.
Earlier this year the Legatum Institute hired Picketty to answer the criticisms and to enlarge his findings. His new report, drawing on several years’ work, tries to answer four questions. First, where is inequality most pronounced? Second, is the world becoming more or less equal? Why are the experiences of Europe and the US so different? Fourth, have we returned to the levels of wealth inequality last seen a century ago?
Picketty and his collaborators fashioned a World Wealth and Income Database that positions every country in a league table.
The most unequal region in the world is the Middle East, where the top 10% receive 60% of all income. India, Brazil and sub-Saharan Africa are not far behind.
The most equal region is Europe, where the figure is 37%. China is the next most equal, with a top income share of 41%. This comes as a surprise considering the media often focuses on what it claims is the country’s widening inequality.
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