This document is a presentation by four students - Nishat Jahan Supti, Sadman Joa Aninda, Atia Iffat Naziba, and Md Shazidul Islam - on economic inequality in developing countries. It defines economic inequality, identifies the main types as income, pay, and wealth inequality. It also explains how inequality is measured using tools like the Gini coefficient and ratio measures. The presentation then characterizes developing countries and discusses their high levels of inequality, poverty, population growth, and more. It concludes by proposing policies to reduce inequality through employment programs, education access, and other interventions.

1. Prepared For
NUSRAT JAHAN
Assistant Professor
Sociology Discipline
Khulna University
Khulna-9208
Course Title – Economic Sociology
Course No - Econ 1251
Presentation Topic – Economic
Inequality In Developing Country
Prepared By
1. Nishat Jahan Supti
Student_ID – 181621
2. Sadman Joa Aninda
Student_ID – 181628
3. Atia Iffat Naziba
Student_ID – 181651
4. Md Shazidul Islam
Student_ID – 181654
Group Name – Group I

2. Welcome
to
Our Presentation

3. Economic Inequality
in
Developing Country
Our Presentation Topic Is

4. Economic inequality is the unequal distribution of
income and opportunity between different groups in
society.
What is Economic Inequality?

5. There are mainly 3 types of economic inequality exist –
1) Income Inequality
2) Pay Inequality
3) Wealth Inequality
According to inequality.org – Income Inequality
refers the other extent to which income is distributed in an
uneven manner among a population.
What Are The Types of Economic Inequality?
1) Income Inequality-

6. Income is a gain or recurrent benefit usually
measured in money that derives from capita or labor. Income
inequality is often associated with the idea of income ‘fairness’.
Most people consider it ‘unfair’ if the rich have the
disproportionally larger proportion of a country’s income
compared to the general population. The causes of income
inequality can significantly by religion, gender, education and
social status.
Pay refers to payment from employment only. This
can be on an hourly, monthly or annual basis, is typically paid
weekly or monthly and may also include
2) Pay Inequality

7. bonuses. A person’s pay is different to their income.
Pay inequality therefore describes the difference between
people’s pay and this may be within one company or across all
pay received.
Wealth refers to the total amount of assets of an
individual or household.
Wealth may include financial assets, property and private
pensions. Wealth inequality therefore refers to the unequal
distribution of assets in a group of people.
3) Wealth Inequality –

8. Economic Inequality is mainly measured in 3 ways –
The Gini, developed by Italian statistician Corrado Gini in
1912, is a measure of income inequality applicable to both small
and large populations, from households to countries.
How is Economic Inequality Measured?
1) Gini Coefficient

9.  Gini Coefficient or Gini Index is a statistical measure
where 2 different value is used, 0 and 1 (100%).The value of 0
signifies perfect equality and 1 or in between 100% indicates
maximum inequality.
 If all the income went to a single person (maximum
inequality) and everyone else got nothing, the Gini coefficient
would be equal to 1.
 If income was shared equally, and everyone got
exactly the same, the Gini would equal 0. The lower the Gini
value, the more equal a society.
 Gini Coefficient in Bangladesh was 32.40% in 2016.


10. Ratio measures compare how much people at one
level of the income distribution have compared to people at
another.
For example For instance, the 20:20 ratio compares
how much richer the top 20% of people are, compared to the
bottom 20%.
Common examples:
 50/10 – describes inequality between the middle and the
bottom of the income distribution
 90/10 – describes inequality between the top and the bottom
2) Ratio Measures –

11.  90/50 – describes inequality between the top and the middle
 99/90 – describes inequality between the very top and top
The Palma ratio is the ratio of the income share of
the top 10% to that of the bottom 40%. In more equal societies
this ratio will be one or below, meaning that the top 10% does
not receive a larger share of national income than the bottom
40%. In very unequal societies, the ratio may be as large as 7.
3) Palma Ratio –

12. According to United Nations (UN) – A developing
country is a country with relatively low standard of living,
underdeveloped industrial base, and moderate to low Human
Development Index (HDI).
According to Cambridge Dictionary – A country with
little industrial and economic activity and where people generally
have low incomes.
According to Collins Dictionary of Sociology –A
Developing Country is, a non industrialized country that is seeking
to develop its resources by industrialization.
What is Developing Country?

13. Developing countries are also called poor countries.
Sometimes they are often called underdeveloped economics.
According to the UN criteria, countries with less than $400 level
of per capita income countries are designated as low income
countries and countries with less than $750 per capita income
as called less developed economics.
The following are the main characteristics of developing
countries:
What are the characteristics of Developing Country?

14. Developing countries are poor. By definition,
GDP and Per Capita Income are at low level. General living
standard of people in these countries is very slow. Poverty is
visibly disturbing every aspect of life.
Agriculture is the main occupation in developing
countries. More than 70 percent of active labor force is engaged
in this primary sector. Population increases and the increased
labor stick to agriculture thereby over burdening the firm size.
There is low output per head.
High Dependence on Agriculture
General Poverty

15. Most of the developing countries are rich in natural
resources. However, their exploration and exploitation is limited.
Sometimes, foreign companies control them. Generally, raw
products are exported at low prices.
The industrial sector in developing countries is at the
primary stage of development. Its contribution to GDP is less
than 10% employing 2 to 4% of the labor force. Industrial growth
is very slow.
Lack of Industries and Enterprises
Underutilized Natural Resources

16. Capital deficiency is another common problem of
developing countries. Because the countries are poor, they save
less which results in low capital formation. They possess less
investment capital. In addition their existing technology is old
and unproductive.
The factors that help for development are
called infrastructures. Good road system, highways, telephone,
services, big dams and canals, banks and financial services are
some examples of the necessary infrastructures.
Lack of Basic Infrastructures
Lack of Capital and Technology

17. Developing countries are poor. They have low per
capita income. Low income means less saving, that is less
capital and less investment. Low investment leads to less
production that means low income. The vicious circle of poverty
is complete.
It proves that a poor country is poor because it is
poor. It is better understood from the following relation:
Low Investment-Low Production-Low Capital-Low
Investment-Low Production-Low Income
Vicious Circle of Poverty

18. There is high growth rate of population in developing
countries. It is as high as 3 percent per annum. Children under
the age of 15 constitutes a large proportion, generally more than
40 percent of the total population. Together these two age
groups from about 45 percent of the population. Because these
groups are economically inactive, they have to depend on the
family.
Different kinds of social groups reside in a country.
They differ in terms of religion, castes, and creeds, cultures and
customs, languages and beliefs, etc.
Socio-cultural Characteristics
Demographic Characteristics

19. Such social and cultural values have deep impact in
the economy of a nation, Developing countries barbour may
discordant social patterns in their economic life.
Developing countries do not have development in all
sectors. Employment opportunities or activities exists in urban
areas whereas traditional production method is used in rural
areas. Employment opportunities are less. Hence, these
countries have dualistic economy which results in various
problems with formulating economic policies.
Dualistic Economy

20. Economic inequality is seen not only in developed
countries but it is also seen in developing countries. The
developing countries face economic inequality in various ways.
Let’s have a look –
 On average, income inequality increased by 11
percent in developing countries between 1990 to 2010.
 75 percent of the people of developing countries are
living in societies where income is more unequally distributed.
How Is The Economic Inequality In Developing Country?

21.  It is seen that the economic inequality leads to social
inequality after a certain period.
 While achieving strong growth performance, some
country try to reduce income inequality.
 It is found on a survey that, economic inequality in
the developing countries is generally high and potentially a
threat to long term social and economic development.
 Redistribution remains very important for developing
countries to reduce inequality.
 To reduce inequality, it requires to address
inequality-reproducing cultural norms and strengthening the
political agencies of disadvantaged group.

22.  When growth is below capacity and the job market is
slack, apply fiscal and monetary policies aggressively to achieve
full employment.
 Take actions against countries that manage their
currencies to subsidize their exports to us and tax our exports to
them.
How Can We Eliminate Economic Inequalities?

23.  Support sectoral training, apprenticeships, and earn-
while-you-learn programs.
 Create jobs through targeted employment programs
and public investments in infrastructure.
Provide better oversight of financial markets:
1. Mandate adequate capital buffers,
2. Strengthen the Consumer Financial Protection Bureau,
3. Encourage vigilant oversight of systemic risk in the banking
system by the Federal Reserve.

24.  Protect and strengthen investments in basic living
standards such as nutrition, health, and income insurance and
ensuring that programs such as unemployment insurance are
there for more workers if they lose their job.
 Ensure that workers with disabilities have a fair shot
at employment and economic security.
 Identify and tear down the systemic barriers that
people face because of race, ethnicity, language, and
immigration status.
 Ensure that every working family can afford high-
quality child care.

25.  Correct political imbalances- strengthen and protect
the voting rights act, level the playing field for political
contributions, and limit the influence of corporate lobbyists.
 Reduce our trade deficit by stopping destructive
currency manipulation.
 Fully fund Pell Grants to help low-income students
access higher education and develop the skills needed to
compete in a competitive job market.
 Rebuild unemployment insurance and cash
assistance to ensure a strong safety net that supports poor and
low-income children, families, and individuals when they need it.

26.  Protect workers’ rights. States can raise wages by
protecting workers’ right to bargain collectively and by
strengthening and enforcing laws and regulations to prevent
abusive employer practices that deprive workers of wages they
are legally owned.
 Expand opportunities for current and future workers-
invest in infrastructure and other nationally needed jobs; enact
income-based loan repayment to increase higher education
accessibility and affordability; and pursue full employment.

27.  Expand early education. States can help families
work and kids learn by investing in quality, affordable early care
and education programs, as well as after-school programs.
 Regularize undocumented workers to lift not only
their wages but also the wages of all workers in the same fields
of work.
 If the private market fails to provide enough jobs to
achieve full employment, the government must become the
employer of last resort.

28.  Wikipedia.com
 Merriam-webster.com
 Milanovic, B. (2005). Worlds apart: Measuring International and Global Inequality.
Princeton, MA: Prinston University Press
 Collins Dictionary of Sociology
 Cambridge Dictionary of Sociology
 Mc Call, L. & Percheski, C. (2010). Income inequality: New trends and research
directions. Annual Review of Sociology, 36(1), 329-347
 Solt, F. (2009). Standardizing the world income inequality database. Social Science
Quarterly, 90(2), 231-242. SWIID Version 3.0, July 2010.
 Staff (December 9, 2014). “Inequality hurts economic growth, finds OECD Research”.
Organization for Economic Co-operation and Development, Retrieved February 8,
2015.
 Investopedia.com
 Inequality.org
 Fletcher, Michael A. (March 10,2013). “Research ties economic inequality to gap in
life expectancy”. Washington Post. Retrieved March 23, 2013.
 Undp.org
References

29. ID – 181628 – (i) What Is Economic Inequality?
(ii) What Are The Types of Economic
Inequality?
(iii) How Is Economic Inequality
Measured?
ID – 181621– (iv) What Is Developing Country?
(v) What Are The Characteristics of
Developing Country?
ID – 181651 – (vi) How Is The Economic Inequality In
Developing Country?
ID – 181654 – (vii) How Can We Eliminate Economic
Inequality ?
Activity

30. Thank You All
For The
Co-operation