Global+Economic+Disparity

=**Economic Disparity**=

Economic Disparity is an inequality which some people or countries are much better off economically than other people or countries. Per capita incomes in 100 countries have dropped from their maximum levels, this has become a phenomenon. By the end of the 1990's the world itself in a situation where 13 of the worlds richest countries, with a GDP of 20 000 US$, and 26 of the worlds poorest countries had a GDP less than 350 US$. = OECD =

OECD stands for Organization for Economic Co-operation and Development. This organization was formed in 1961 and consisted of the United States, Canada, and 20 countries in Western Europe. Today the OECD has 31 countries. The most recent countries to join were South Korea and Hungary in 1996. The organization provides governments with a forum in which to discuss and develop social and economic policies. The goal of OECD is to maximize economic growth and assist with non members to develop more rapidly.

= Gini Index =

The Gini Index is a measurement of how evenly wealth is distributed among classes in a society. The Diagonal line indicates an even distribution. The gap between the diagonal line and the actual line measures the inequality.

= Causes of Disparity =

There are many sources of disparities within society and their causes are often difficult to identify. One area that is identified as an important factor is socio-economic diversity. Another area is population. Disparities in population may be caused by some parts of population acting differently. Varying levels of population can also cause problems. There are other factors effecting disparities but none as important as socio-economic diversity and population.

= Examples of Disparity =

Economic Disparity can easily be identified, Common areas where this disparity is popular are the United States and India. The United States has a reoccurring record of income inequality, which is where the income, within a house hold or an individual, is distributed un evenly. The debate that has occurred for centuries is often accused on education levels, ages and the number of workers. The inequality in India is of the social economic problems. India’s low literacy rates, education levels, and high population all have a cost on the economy. Although over the last 7 years, India’s economy has grown, still about 40% of the country lives in poverty and on less than a dollar a day. India is slowly moving into the service industries, although 60% of the country is still capitalized by agriculture.

Sources : Clark, Bruce. 1948- Global Connections: Canadian World Issues. Pg 202 -206. [] [] []