UN Report Highlights Disturbing Wealth Inequality in the Arab World
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Beirut, Dec 5 (NationPress) A UN report published on Thursday underscores a 'disturbing' increase in wealth inequality throughout the Arab world.
The document, issued by the United Nations Economic and Social Commission for Western Asia (ESCWA), indicates that although household wealth in the region has been increasing at a rate faster than the global average, the disparity between the affluent and those living in poverty has expanded significantly, especially since 2011.
The brief, titled 'Unequal Trends in Wealth Accumulation in the Arab Region', highlights that the wealth gap between High-Income Countries (HICs) and Low-Income Countries (LICs) has grown considerably. In 2022, the average wealth in HICs was 31 times greater than that in LICs within the Arab region.
'LICs are not only falling behind their regional counterparts but are also lagging behind globally. This divergence poses a threat to social cohesion and economic stability,' stated Khalid Abou Ismail, a senior economic affairs officer at ESCWA, emphasizing, 'The expanding wealth gap is alarming.'
The wealth share of the richest 10 percent in LICs increased from 55 percent in 2000 to 64 percent in 2022, while it rose from 58 percent to 62 percent in Middle-Income Countries (MICs), according to Xinhua news agency.
In contrast, the share of national wealth held by HICs decreased from 74.7 percent to 69.6 percent, as reported in the brief.
'These patterns illustrate that wealth is becoming increasingly concentrated among the affluent, particularly in LICs, intensifying inequality and undermining efforts to alleviate poverty,' it noted.
The report calls for a comprehensive policy approach to foster wealth equality and inclusive growth, recommending enhanced financial access for low- and middle-income families, progressive taxation on high-value assets, and significant wealth transfers to support programs aimed at aiding the disadvantaged.
