Income Inequality <ul><li>To understand the full ramifications of poverty in a certain country is not enough to know that country’s per capita income. How equally—or unequally—income is distributed determines number of poor people in a country and the average quality of life in that country. </li></ul>
Lorenze Curve <ul><li>Measures how much the distribution of wealth or income deviates from a condition of equality. </li></ul><ul><li>The larger the curve is the more unequal the distribution of income or wealth is. </li></ul><ul><li>The curve is determined dividing the population into 5 groups from poorest 20% to wealthiest 20% and determining how much of the gross national product each group receives </li></ul>
Gini Index <ul><li>Devised by the Italian sociologist Corrado Gini </li></ul><ul><li>Numerical indicator of the degree of inequality </li></ul><ul><li>A large Gini Index number indicates a great degree of inequality in income and wealth. </li></ul>Gives a numerical value to the distance between the straight diagonal of perfect equality and the curve of inequality in a certain population
Finding Income Distribution & Gini Index Statistics <ul><li>The World Bank calculates income distribution figures and the Gini Index for each country. </li></ul><ul><li>These statistics are most easy accessible, however, through the USAID website. </li></ul>
Income Distribution The different between the rich and the poor is much greater in Brazil than in Nicaragua. % of Gross Domestic Product ( GDP )
Poverty Statistics from the Population Data Sheet /Population Reference Bureau Although Nicaragua has a more equitable distribution of wealth than Brazil, it is a much poorer country with 80% of its population living on less than $2 per day.
Population Growth Although Brazil has a much greater population, Nicaragua’s population is growing at a much faster rate and will nearly double by the year 2050. Statistics from the Population Data Sheet /Population Reference Bureau.
Literacy Rates In both Brazil and Nicaragua more than ¾ of adults can read and write. Brazil has a sight advantage: 88% literacy rate to Nicaragua’s 76%. Statistics from USAID
Health Care Although Nicaragua and Brazil spent the exact same percent of their gross national product on healthcare, Brazil has more than double the number of hospital beds and nearly triple the number of physicians for every 1000 people. Statistics from USAID
Websites Used <ul><li>“ Lorenz curve". The Blackwell Dictionary of Sociology (2000). Retrieved 13 February 2006, from xreferplus. http://www.xreferplus.com/entry/724034 </li></ul><ul><li>Population Data Sheet /Population Reference Bureau http ://www.prb.org/Template.cfm?Section=PRB&template=/Content/ContentGroups/Datasheets/2005_World_Population_Data_Sheet.htm </li></ul>
<ul><li>USAID Development Statistics for Latin America and Caribbean http://qesdb.cdie.org/lac/index.html </li></ul><ul><li>World Bank: Latin American and Caribbean http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/LACEXT/0,,menuPK:258559%7EpagePK:158889%7EpiPK:146815%7EtheSitePK:258554,00.html </li></ul>
<ul><li>World Bank: Beyond Economic Growth: An Introduction to Sustainable Development http://www.worldbank.org/depweb/english/beyond/global/ </li></ul>