Feb 26 2024 29 mins
Have you ever heard of the Gini index or Gini coefficient ? If you haven’t, the Gini index is a synthetic indicator of the level of inequality for a given variable and population. It varies between 0 (perfect equality) and 1 (extreme inequality). Between 0 and 1, the higher the Gini index, the greater the inequality. Inequalities measured in this way can relate to variables such as income, salaries, standard of living, and so.
According to the World Bank, for economic inequality, the top five countries are:
- South Africa - 63%
- Namibia - 59.1%
- Suriname - 57.9%
- Zambia - 57.1%
- Sao Tome and Principe - 56.3%
My invitee today, the Julius Baer Foundation, decided to focus its work on wealth and education inequalities with interventions in countries with the highest Gini index.
As they define it, “wealth inequality is the unequal distribution of assets among people and organizations. It encompasses not only the lack of financial resources but also the lack of social capital, which allows an individual to access the networks and opportunities necessary to live a dignified life.”
Wealth inequality is indeed one of the most significant challenges of modern times. It can lead to unequal societies, social instability, violence, unrest, and further societal problems that affect the world at large.
To discuss this very complex topic, I am happy to interview Laura Hemrika, Chief Executive Officer of the Julius Baer Foundation.
With Laura, we talk about:
- the complex approach to inequalities;
- the impact in terms of synergies created among different stakeholders;
- the necessity of a power shift in the donor-grantee relationship;
- what organizations should pay attention to when working on the topic of inequalities whether directly or indirectly via other topics, such as health, gender, housing, etc.
For more information about the Julius Baer Foundation, please visit its website.