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Economic Inequality between Nations
1. INTRODUCTION
1.1 Many countries become very rich, while others stay poor.
1.2 Background Information
Global wealth and resources are unevenly distributed, leading to persistent economic inequality. According to the UBS Global Wealth Report, in 2023 the world’s richest 1 percent owned 47.5 percent of global wealth, while nearly 40 percent of adults with less than $10,000 held under 1 percent (Global Inequality – Inequality.org). Additionally, the United States’ top 1 percent holds 40.5 percent of national wealth, a higher share than any other OECD country (Global Inequality – Inequality.org).
1.3 Thesis Statement: Economic inequality has created a gap between rich and poor countries, but fair trade, education, and global resources can help fix it.
2. PROBLEM
2.1 Poor Quality Education and Technology
In many low-income countries, educational infrastructure is insufficient, with far fewer secondary schools and higher-education institutions per capita compared to wealthier nations. Limited internet access and outdated technology further hinder learning outcomes and workforce readiness.
Note: This section includes information based on general knowledge, as specific supporting data was not available.
2.2 Low Income and Unemployment
Economic downturns in developing countries directly affect income distribution through unemployment. Hacibedel et al. show that during “bad” economic times, the share of income held by the bottom 50 percent falls, while the top 10 percent gains a larger share, with the unemployment channel explaining roughly 28.4 percent of this effect (Hacibedel et al.). High unemployment rates and limited formal job opportunities trap millions in poverty and hinder capital accumulation.
Note: This section includes information based on general knowledge, as specific supporting data was not available.
3. SOLUTIONS
3.1 Financial Support for Education
Rich countries and international organizations can provide scholarships and grants to students from low-income nations, and finance the construction of schools and training centers in underserved regions. By lowering tuition barriers and improving facilities, educational attainment and human capital formation can increase significantly.
Note: This section includes information based on general knowledge, as specific supporting data was not available.
3.2 Fair Trade Rules
Establishing fair trade agreements that guarantee equitable market access and stable minimum prices for exports from poorer countries can boost local industries and increase national revenues. Such rules help protect small-scale producers from volatile markets and ensure that developing economies capture a fair share of global value chains.
Note: This section includes information based on general knowledge, as specific supporting data was not available.
3.3 Investment in Local and Green Industries
Targeted investments in renewable energy projects, such as solar farms, and in small-scale manufacturing can stimulate sustainable growth. Green industries create local employment, reduce dependency on imports, and help align economic expansion with environmental goals.
Note: This section includes information based on general knowledge, as specific supporting data was not available.
3.4 Increased International Funds
Development banks and multilateral institutions can expand financing programs to support social protection, job creation, and infrastructure projects in low-income countries. Enhanced contributions to the World Bank and UN development funds would enable larger-scale initiatives to reduce inequality and stabilize economies.
Note: This section includes information based on general knowledge, as specific supporting data was not available.
4. CONCLUSION
4.1 Re-stated Thesis
Economic inequality slows global growth, but investment, technology, and access to global resources can help fix it.
4.2 Final Thoughts
If rich and poor countries work together, everyone benefits.
Works Cited
“Global Inequality – Inequality.org.” Inequality.org, https://inequality.org/facts/global-inequality/. Accessed 30 Nov. 2025.
Hacibedel, Burcu, Priscilla Muthoora, and Pierre Mandon. “Economic Fluctuations and Inequality in Developing Countries: Unveiling the Unemployment Connection.” Let’s Talk Development, World Bank, 22 Nov. 2023, https://blogs.worldbank.org/en/developmenttalk/economic-fluctuations-and-inequality-developing-countries-unveiling-unemployment.