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INEQUALITY
Group Members
•   Hina Khalid      10070621-001
•   Iqra Farooq      10070621-009
•   Maria Aslam      10070621-017
•   Ali Irfan shah   10070621-031
•   Hinza Riaz       10070621-045
•   Umer Jalil       10070621-053
•   Gulsher          10070621-055
•   Hassan Naqi      10070621-063
Hina Khalid
 10070621-001
     TOPIC
Measurements of
  inequality
Measurement of Inequality

•   Kuznets Ratio
•   Lorenz Curve
•   The Gini Coefficient
•   Gender Inequality Index
Kuznets Ratio
• The Kuznets ratio is a measurement of the ratio
  of income going to the highest-earning
  households (usually defined by the upper 20%)
  and the income going to the lowest-earning
  households
• Commonly measured by 40% lower and 20%
  higher income receiving groups. Comparing 20%
  to 20%, perfect equality is expressed as 1; 20% to
  40% changes this value to 0.5.
CONT…
• Kuznets had two similar explanations for this
  historical phenomenon
• workers migrated from agriculture to industry;
  and rural workers moved to urban jobs.
• In both explanations, inequality will decrease
  after 50% of the shift force switches over to
  the higher paying sector.
Lorenz curve

• A model developed
  by economist Max
  Lorenz in 1905.

• It is often associated
  with income
  distribution calculations
Iqra Farooq
 10070621-009
    TOPIC
Measurements of
  Inequality
The Gini Coefficient
                    Invented by the Italian statistician Corado Gini. An
                    equality diagonal represents perfect equality: at every
                    point, cumulative population equals cumulative income.


                                                      • A – Equality Diagonal
Cumulative Income




                              A
                                                        Population = Income
                                                      • B – Lorenz Curve
                      C                               • C – Difference Between
                                                        Equality and Reality
                                                  B
                          Cumulative Population
Gender Inequality Index

• A composite measure reflecting inequality in
  achievements between women and men in
  three dimensions
• Reproductive health
• Empowerment
• The labor market.
Umer Jalil
  10070621-053
     TOPIC
Inequality in Pak
    w.r.t Gini
   coefficient
INEQUALITY ACCORDING TO GINI
        COEFFICIENT OF PAKISTAN 1963-99
Years         Rural areas   Urban areas   Total



1963-64       0.348         0.368         0.355
1966-67       0.314         0.388         0.351
1968-69       0.293         0.37          0.328
1984-85       0.345         0.379         0.428
1985-86       0.33          0.354         0.355
1987-88       0.307         0.366         0.348
1990-91       0.41          0.390         0.407
1992-93       0.367         0.384         0.39
1994-95       0.40          0.35          0.40
1996-97       0.41          0.38          0.40
1998-99       0.40          0.33          0.41
Explanation
• Inequalities in urban areas were higher than in
  rural areas.
• According to their analysis, inequality
  increased in both urban and rural areas of
  Pakistan during 1969-70 and 1979.
• For Pakistan, the value of the Gini-coefficient
  was 0.329 in 1969-70 and 0.376 in 1979
CONT…
• It is observed that during 1980s income distribution
  improved from 0.428 in 1984-85 to 0.348 in 1987-88.
  During the same period, the Gini-coefficient for rural
  areas improved from 0.345 to 0.307 while there was a
  little improvement in the income distribution in the
  urban areas of Pakistan. The Gini-coefficient
  decreased from 0.379 in 1984-85 to only 0.366 in
  1987-88 as shown in table.
Irfan Shah
  10070621-031
      TOPIC
Inequality in India
     w.r.t Gini
    coefficient
Inequality According To Gini
    Coefficient Of India
 YEAR           GINI COEFFICIENT

 I970              30.38

 1977               32.14

 1983              31.49

 1990              29.69

 1992              32.02

 1999              29.95

 2002              42.00

 2004              35.5
CONT…




                     Dr Sonali Bhattacharya
Symbiosis Centre of Management and Human Resource Development,
                     Hinjewadi, Pune-411057
                            INDIA
Hinza Riaz
  10070621-45
     TOPIC
 Inequality in
Bangladesh w.r.t
Gini coefficient
Bangladesh
• Bangladesh is considered as a developing
  economy which has recorded GDP growth above
  5% during the last few years
• Three fifths of Bangladeshis are employed in the
  agriculture sector, three quarters of exports
  revenues come from garment industry.
• Obstacles to sustainable development in
  Bangladesh are overpopulation, poor
  infrastructure, corruption, political instability and
  a slow implementation of economic reforms.
Maria Aslam
   10070621-017
      TOPIC
Least Inequality in
Different Countries
5 Countries with least Inequality

•   Luxembourg   26.0
•   Serbia       26.0
•   Norway       25.0
•   Hungary      24.7
•   Sweden       23.0
Gulsher
   10070621-055
      TOPIC
   Inequality in
Different Countries
10 Countries with the Worst Inequality:

• The UNDP ranked countries and regions based on a
  number of factors, including their Gini coefficient,
  named for Italian statistician Corrado Gini.

• We have listed the world's most advanced economies
  based on their Gini score, with zero marking absolute
  equality and 100 absolute inequalities
CONT…
•   Hong Kong
•   Singapore
•   U.S
•   Israel
•   Portugal
Hassan Naqi
   10070621-063
      TOPIC
   Inequality in
Different Countries
CONT…
•   New Zealand
•   Italy (tie)
•   Britain
•   Australia
•   Ireland (tie)
•   Greece (tie)
Rank of Pakistan and India

RANK                 COUNTRY               GINI SCORE   YEAR EST



79                   India                 36.8         2004




109                  Pakistan              30.6         FY07/08




http://www.thinkonthat.com/archives/5420
CONCLUSION
• According to Gini coefficient Pakistan’s rank
  is 109 and its Gini score is 30.6 so as
  compared to India, Pakistan has more equality.
• The country with least inequality is Sweden
  and the country with worst inequality is
   Hong Kong
• Unequal distribution of power, prestige and
  wealth is main reason of inequality.
References
• http://www.investorwords.com/6570/Lorenz_curve.html
• 2010 GII: Construction & Analysis
• http://www.thp.org/what_we_do/program_overview/empoweri
  ng_women?gclid=CK-39LOF8KwCFQRO3godQzUXLw
• Dr Sonali Bhattacharya Symbiosis Centre of Management and
  Human Resource Development, Hinjewadi, Pune-411057
  INDIA
• Tradingeconomics.com
• http://www.thinkonthat.com/archives/5420
• http://finance.yahoo.com/news/pf_article_107980.html
• http://finance.yahoo.com/news/pf_article_107980.html
inequality
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inequality

  • 1.
  • 3. Group Members • Hina Khalid 10070621-001 • Iqra Farooq 10070621-009 • Maria Aslam 10070621-017 • Ali Irfan shah 10070621-031 • Hinza Riaz 10070621-045 • Umer Jalil 10070621-053 • Gulsher 10070621-055 • Hassan Naqi 10070621-063
  • 4. Hina Khalid 10070621-001 TOPIC Measurements of inequality
  • 5. Measurement of Inequality • Kuznets Ratio • Lorenz Curve • The Gini Coefficient • Gender Inequality Index
  • 6. Kuznets Ratio • The Kuznets ratio is a measurement of the ratio of income going to the highest-earning households (usually defined by the upper 20%) and the income going to the lowest-earning households • Commonly measured by 40% lower and 20% higher income receiving groups. Comparing 20% to 20%, perfect equality is expressed as 1; 20% to 40% changes this value to 0.5.
  • 7. CONT… • Kuznets had two similar explanations for this historical phenomenon • workers migrated from agriculture to industry; and rural workers moved to urban jobs. • In both explanations, inequality will decrease after 50% of the shift force switches over to the higher paying sector.
  • 8. Lorenz curve • A model developed by economist Max Lorenz in 1905. • It is often associated with income distribution calculations
  • 9. Iqra Farooq 10070621-009 TOPIC Measurements of Inequality
  • 10. The Gini Coefficient Invented by the Italian statistician Corado Gini. An equality diagonal represents perfect equality: at every point, cumulative population equals cumulative income. • A – Equality Diagonal Cumulative Income A Population = Income • B – Lorenz Curve C • C – Difference Between Equality and Reality B Cumulative Population
  • 11. Gender Inequality Index • A composite measure reflecting inequality in achievements between women and men in three dimensions • Reproductive health • Empowerment • The labor market.
  • 12.
  • 13. Umer Jalil 10070621-053 TOPIC Inequality in Pak w.r.t Gini coefficient
  • 14. INEQUALITY ACCORDING TO GINI COEFFICIENT OF PAKISTAN 1963-99 Years Rural areas Urban areas Total 1963-64 0.348 0.368 0.355 1966-67 0.314 0.388 0.351 1968-69 0.293 0.37 0.328 1984-85 0.345 0.379 0.428 1985-86 0.33 0.354 0.355 1987-88 0.307 0.366 0.348 1990-91 0.41 0.390 0.407 1992-93 0.367 0.384 0.39 1994-95 0.40 0.35 0.40 1996-97 0.41 0.38 0.40 1998-99 0.40 0.33 0.41
  • 15. Explanation • Inequalities in urban areas were higher than in rural areas. • According to their analysis, inequality increased in both urban and rural areas of Pakistan during 1969-70 and 1979. • For Pakistan, the value of the Gini-coefficient was 0.329 in 1969-70 and 0.376 in 1979
  • 16. CONT… • It is observed that during 1980s income distribution improved from 0.428 in 1984-85 to 0.348 in 1987-88. During the same period, the Gini-coefficient for rural areas improved from 0.345 to 0.307 while there was a little improvement in the income distribution in the urban areas of Pakistan. The Gini-coefficient decreased from 0.379 in 1984-85 to only 0.366 in 1987-88 as shown in table.
  • 17. Irfan Shah 10070621-031 TOPIC Inequality in India w.r.t Gini coefficient
  • 18. Inequality According To Gini Coefficient Of India YEAR GINI COEFFICIENT I970 30.38 1977 32.14 1983 31.49 1990 29.69 1992 32.02 1999 29.95 2002 42.00 2004 35.5
  • 19. CONT… Dr Sonali Bhattacharya Symbiosis Centre of Management and Human Resource Development, Hinjewadi, Pune-411057 INDIA
  • 20. Hinza Riaz 10070621-45 TOPIC Inequality in Bangladesh w.r.t Gini coefficient
  • 21. Bangladesh • Bangladesh is considered as a developing economy which has recorded GDP growth above 5% during the last few years • Three fifths of Bangladeshis are employed in the agriculture sector, three quarters of exports revenues come from garment industry. • Obstacles to sustainable development in Bangladesh are overpopulation, poor infrastructure, corruption, political instability and a slow implementation of economic reforms.
  • 22. Maria Aslam 10070621-017 TOPIC Least Inequality in Different Countries
  • 23. 5 Countries with least Inequality • Luxembourg 26.0 • Serbia 26.0 • Norway 25.0 • Hungary 24.7 • Sweden 23.0
  • 24. Gulsher 10070621-055 TOPIC Inequality in Different Countries
  • 25. 10 Countries with the Worst Inequality: • The UNDP ranked countries and regions based on a number of factors, including their Gini coefficient, named for Italian statistician Corrado Gini. • We have listed the world's most advanced economies based on their Gini score, with zero marking absolute equality and 100 absolute inequalities
  • 26. CONT… • Hong Kong • Singapore • U.S • Israel • Portugal
  • 27. Hassan Naqi 10070621-063 TOPIC Inequality in Different Countries
  • 28. CONT… • New Zealand • Italy (tie) • Britain • Australia • Ireland (tie) • Greece (tie)
  • 29. Rank of Pakistan and India RANK COUNTRY GINI SCORE YEAR EST 79 India 36.8 2004 109 Pakistan 30.6 FY07/08 http://www.thinkonthat.com/archives/5420
  • 30.
  • 31. CONCLUSION • According to Gini coefficient Pakistan’s rank is 109 and its Gini score is 30.6 so as compared to India, Pakistan has more equality. • The country with least inequality is Sweden and the country with worst inequality is Hong Kong • Unequal distribution of power, prestige and wealth is main reason of inequality.
  • 32. References • http://www.investorwords.com/6570/Lorenz_curve.html • 2010 GII: Construction & Analysis • http://www.thp.org/what_we_do/program_overview/empoweri ng_women?gclid=CK-39LOF8KwCFQRO3godQzUXLw • Dr Sonali Bhattacharya Symbiosis Centre of Management and Human Resource Development, Hinjewadi, Pune-411057 INDIA • Tradingeconomics.com • http://www.thinkonthat.com/archives/5420 • http://finance.yahoo.com/news/pf_article_107980.html • http://finance.yahoo.com/news/pf_article_107980.html