new sources of wealth and income inequality, not only in the predominantly mineral rich former settler colonies (South Africa, Namibia and Zimbabwe), but also in other mineral-rich non-settler . The analysis confirms tremendous inequalities in the way income and poverty is distributed. The country's success in systematically reducing the gap between the rich and the poor refutes the widespread belief that inequality is inevitable and instead shows that inequality is, in fact, a direct result of policy. Letter - Poverty and inequality in Namibia. The inequality figures thus take into account people who do not actually rely on the formal economy for their survival. Body mass index, poverty and inequality in Namibia. This article looks at income inequality in Namibia and Tunisia. I. While Namibia measured 63.3 on the gini-coefficient in 2003 (with 100 being perfect inequality), Namibia improved to 60.8 in 2012. On the other hand, the average income of Africa's richest coun-tries (Algeria, South Africa, Libya for example), stag-nated in the years 1990, and increased moderately in That means that working from the highest end of the scale, 80% of the information on Botswana's income and wealth distribution remains unknown, and the depth of this inequality could be much deeper than is commonly believed. Namibia The Human Capital Index (HCI) database provides data at the country level for each of the components of the Human Capital Index as well as for the overall index, disaggregated by gender. Sub-Saharan Africa is host to some of the most unequal countries in the world in terms of income inequality with South Africa, Namibia, Botswana, Central African Republic and Zambia ranking amongst the top ten.2 These high levels of inequality are often traced to colonial times, where Globally, Namibia has the third highest levels of income inequality, according to the World Bank. Inequality is most commonly estimated by the Gini coefficient, which is described in the text box below. A pilot Basic Income Grant project was conducted in the region of Otjivero-Omitara area from 2007 to 2009 with very positive results in reducing poverty and crime and in raising levels of school attendance. Social Safety Nets Reduce Poverty, Income Inequality. At the turn of the millennium, the world's richest 1 percent received as much income as the poorest 57 percent. GDP is basically the market value of goods and services produced within a country within a certain time. The analysis confirms tremendous inequalities in the way income and poverty is distributed. The dynamics of poverty and inequality in Namibia: A Some of the challenges that Namibia faces: The methods divided into two: for poverty, the FGT indices of poverty common and calculable using the various datasets. There are at least three reasons why higher gender inequality is associated with higher income inequality: First, gender wage gaps directly contribute to income inequality, and higher gaps in labor force participation rates between men and women result in inequality of earnings between sexes, thus . and height to lean body mass. The next highest scores is found in Lesotho with 63.2. According to this definition 53% of households and 65% of individuals in Namibia live below the income poverty line at the time of the survey. South Africa is an African nation located in the southernmost part of the African continent. Despite the improvement, Namibia remains one of the most unequal countries in the world, and has a high rate of poverty rate at 29.9% and an unemployment rate of 26.6%. One idea is to send extra state funds to low-income residents already enrolled in safety-net programs or receiving the state's Earned Income Tax Credit. What Country Has The Highest Income Inequality? Introduction We are living in an unequal world. According to 2009 United Nations study the ratio of the income of the top 10 percent of earners to the income of the bottom 10 percent was 106.6 in Namibia. income inequality comes from the within country component, and the be- . According to this definition 53% of households and 65% of individuals in Namibia live below the income poverty line at the time of the survey. Good macro-economic performance provides an opportunity on the one hand, to reduce poverty and on the other hand, to reconcile the differences Poverty and Inequality in Namibia The most recent figures on poverty and inequality used by the Namibian Government are derived from the 2003/04 Namibia Household Income and Expenditure Survey (NHIES), which claimed a reduction of 55% in terms of absolute poverty between independence and 2003/04 (CBS 2006). Economic growth, employment creation and reduction of poverty and income inequality remain central objectives of the National Development Plans, and the long-term Vision 2030 sees Namibia move from a developing, lower middle income country to a developed, high income country by 2030. However, Namibia has very high income inequality, whereas Tunisia has relatively low income inequality. Several countries sustained double-digit growth. For instance, the World Bank Group has included among its key global objective for development the eradication of extreme poverty and boosting the incomes of the bottom 40% of developing countries. Author : Bank of Namibia. The index measures the amount of human capital that a child born today can expect to attain by age 18, given the risks of poor health and poor . The apparent imbalance between Namibia's high income and simultaneous extreme prevalence of poverty can be traced to enduring income inequalities.Globally, Namibia has the third highest levels of income inequality, according to the World Bank. The report was produced before the Covid-19 pandemic and its authors used the Gini coefficient - an indicator of income inequality - to rank countries. Chapter 9 Income Inequality and Population Growth in Africa / 207 shape' inequality-population growth nexus lends credence to the relationship between inequality, population and economic growth. Noting that Namibia is also not an industrial, neither a high-tech. Namibia's Inequality Index. GDP growth has been accelerating 7 Figure 5. Namibia's UBI program, the Basic Income Grant (trialled in 2007-2012), reduced household poverty rates from 76% of residents before the trial started to 37% after one year. Namibia - GINI index (World Bank estimate) Definition: Gini index measures the extent to which the distribution of income (or, in some cases, consumption expenditure) among individuals or households within an economy deviates from a perfectly equal distribution. FOR PUBLIC RELEASE FOR PUBLIC RELEASE Originally Approved: July 20, 2018 Reviewed and Updated: May 31, 2019; Jan 12, 2021 7 Justification: Namibia is an upper middle income country with above-average economic Namibia is . Race plays the biggest role in driving inequality in South Africa, the world's most unequal country where the richest 10% of the population own more than four-fifths . Morocco, Ghana, Angola, Tunisia, Namibia or Lesotho, saw their average income increase signi cantly. With a majority of Americans now concerned about wealth and income inequality in our country, TalkPoverty is launching a new feature, "10 Solutions to Fight Economic Inequality." We asked experts to use this list by economist Tim Smeeding as a sample and to offer their ideas on how to dramatically reduce poverty and inequality in America. The country is facing high-income inequality with an average of 0.65 Gini coefficient. Income inequality in Africa Introduction Africa has made impressive economic progress in the 2000s. Open access, high quality wealth and income inequality data developed by an international academic consortium. The UNDP 2007/2008 Human Development Report cites an inequality ("in income or expenditure") score of 74.3 for Namibia. Around the world in Britain, the United States, Asia and the Middle East, there are people with power who are cashing in on chaos; exploiting bloodshed and catastrophe to brutally remake our world in… healthy individuals increase with the square of height. Both countries have a relatively high GDP per capita compared to other African countries. It is based on the 2003/2004 Namibia Household Income and Expenditure Survey (NHIES) and includes the establishment of a new poverty line based on the cost of basic food and non-food needs. Six hundred and thirty three percent of South Africans live in the country. Another of its targets is to reduce the Gini coefficient, a common measure of income inequality, by 3 percent a year in order to halve it from 0.59 in 2009/10 in Namibia to 0.30 by 2030. Unemployment in Namibia: Measurement Problems, Causes & Policies -Working Paper Page | 8 CHAPTER 1 INTRODUCTION In the last two decades (1990 -2010), Namibia has been confronted with many challenges and crisis such as HIV/AIDS, floods, various endemic diseases, income inequality, famine and widespread poverty. "Land is a key asset, especially for poor people in rural areas. in the formal sector and pay income tax. However Gini values are not all up-to-date. Bank of Namibia Annual Symposium 2003 Bank of Namibia Annual Symposium 2003 2003 2003 Bank of Namibia. 1 Hangula said income inequality, as measured by the gini co-efficient had declined from 0.604 to 0.58. Basic Income Grant (BIG) in Namibia Namibia has long suffered from high levels of poverty and income inequality. Previous IMF studies have found that income inequality (as measured by the Gini coefficient, which is 0 when everybody has the same income and 1 when one person has all the income) negatively affects growth and its sustainability (Ostry, Berg, and Tsangarides 2014; Berg and Ostry 2011). Around 70 percent of Namibia's farmland is . The analysis confirms tremendous inequalities in the way income and poverty is distributed. The presumption underlying the use of BMI is that. . 57.9% of people in Suriname are Protestant. Inequality in Namibia a ticking bomb 2018-03-20 Staff Report 2 "Namibia is known for its extreme income inequality, which is one of the highest societal inequalities in the world despite the country's endowment with abundant natural resources, good infrastructure, a vibrant democracy, peace and stability. 2020-09-18 Staff Reporter. According to this definition 53% of households and 65% of individuals in Namibia live below the income poverty line at the time of the survey. Poverty in Namibia still bears a distinct rural face, with the poorest regions being those in which the majority of the population live in rural areas of the country. Only a minority of people depict the living standards expected in an upper -middle-income country (Namibia Statistics Agency and World Bank 2017). income inequality measured by the iniG coefficient showed levels of 0.70, 0.60 and 0.59 in 1994, 2004 and 2010 respectively, ranking among the ten most unequal countries (World Bank 2019). The figure measures inequality on a scale of zero to one, where one indicates maximum inequality. In Namibia, 70% of the 39.7 million hectares of commercial agricultural land "still belong to Namibians of European descent", the World Bank said. Namibia has one of the highest rates of income inequality in the world, due in part to the fact that there is an urban economy and a more rural cashless economy. The credit currently gives up to $3,160 to . InequalIty InnaMIbIa As confirmed by various studies, Namibia has one of highest degrees of income inequality in the world. 28 Since independence, Namibia has achieved significant progress in reducing poverty by 41 per cent and inequality on the basis of Gini Coefficient from 0.7 to 0.597 due to huge investment in social sectors, institutionalized democracy, peace and security, political stability, as well as sustained macroeconomic stability supported by prudent fiscal and monetary policies. March 9, 2022, 10:39 AM PST. Income inequality refers to the extent to which income is distributed in an uneven manner among a population. Namibia's inequality is extreme. income inequality while maintaining macroeconomic stability. Table C: Namibia's IHDI for 2019 relative to selected countries and groups IHDI value Overall loss (%) Human inequality coefficient (%) Inequality in life expectancy at birth (%) Inequality in education (%) Inequality in income (%) Namibia 0.418 35.3 33.6 22.1 25.0 53.6 South Africa 0.468 34.0 31.2 19.2 17.3 57.0 About 60% of Namibians are actually employed in the informal economy where they earn starvation wages. Not only do social safety nets "play a pivotal role" in reducing poverty and lowering income inequality but they also have been demonstrated to be effective in doing so. Can Namibia Avoid the Resource Curse? The analysis confirms tremendous inequalities in the. The . A large percentage of Namibia's GDP, 59.4%, derives from agriculture. Namibia is a higher-middle-income country with an estimated annual GDP per capita of US$5,828 but has extreme inequalities in income distribution and standard of living. The country is at a difficult juncture when it comes to fiscal policy and the difficult task facing government is to strike the right balance between macroeconomic stabilization The initiative 1 This dataset, which was published in 1996, has extensive cross-country estimates for multiple years but has a substantial number of missing observations. This article looks at how Namibia and Tunisia have ended up with very different levels of income inequality. Income Inequality The most widely cited dataset on income inequality is the Deininger and Squire dataset (1996) compiled by Klaus Deininger and Lyn Squire for the World Bank. Namibia The source for global inequality data. The poorest 20% of the population receives 2.5% of total expenditure, while the top 20% receives 71%. We hope you will use these lists as a resource to . The poorest 20% of the population receives 2.5% of total expenditure, while the top 20% receives 71%. Namibia is one of just nine countries in Africa categorized by the World Bank as "upper middle income". Annual Symposium [on] Poverty, Income Inequality and Economic Development; Publisher : Anonim; Release : 28 March 2022; GET THIS BOOK Bank of Namibia Annual Symposium 2003 Namibia has the second-highest Gini index of inequality in the world 6 Figure 4. The distribution of income in an economy matters and can be measured on a country by country basis by the Gini Coefficient. According to Strauss, pronounced income inequality is a reality in Namibia and is the reason for the massive income divides. These are two key assertions in the World Bank Group's "The State of Social Safety Nets 2018" report released on . Gender and income inequality are linked. However Gini values are not all up-to-date. 1. 1 Due to differences in data collection, inequality scores are notoriously difficult to compare across countries and regions. These reforms were introduced in the context of a slow-growing economy, high levels of unemployment, and high income inequality and poverty. Progress toward reducing inequality has been slow and as a result, Namibia remains one of the most unequal countries in the world. World Economics has developed a simple Inequality Index which references the Gini Coefficient in relation to each country for comparison purposes. South Africa has emerged as one of the countries in the world with the most unequal income distribution with 60% of its population earning USD$7,000 per year. The poorest 20% of the population receives 2.5% of total expenditure, while the top 20% receives 71%. Namibia - GINI index (World Bank estimate) Definition: Gini index measures the extent to which the distribution of income (or, in some cases, consumption expenditure) among individuals or households within an economy deviates from a perfectly equal distribution. This way, BMI is defined in. For a detailed discussion of these Poverty is high in Namibia relative to average income per person 5 Figure 3. analysed before. World Economics has developed a simple Inequality Index which references the Gini Coefficient in relation to each country for comparison purposes. Namibia is the country with one of the highest gini co-efficients in the world, yet the classification of income status is based on Gross Domestic Product (GDP). It said unequal land ownership, particularly in Namibia and South Africa, perpetuates historically high levels of income inequality. A Lorenz curve plots the cumulative percentages of total income received against the cumulative number of recipients, starting with . This new method replaces the approach used since the first NHIES in 1993/1994 and accordingly this re- Given this background, this paper seeks to examine Namibia's tax policy reforms introduced in the 2013 national budget. The consortium made the proposal for a Basic Income Grant in light of the high poverty levels and the unequal distribution of income (income inequality) in Namibia. Perfect equality means a country's total income is shared equally among its residents, whereas perfect inequality means a country's total income is owned by a single individual. Semantic Scholar extracted view of "Inequality in Namibia" by H. Jauch et al. A Lorenz curve plots the cumulative percentages of total income received against the cumulative number of recipients, starting with . Abstract: Reducing poverty and inequality continues to be an important national priority in Namibia. As things stand, Namibia's fiscal policy stand at a crossroad. South Africa using the Gini ratio as a measure of inequality. In the ITI edition of 2020, Botswana is among the countries that scored between 0.5 and 2 out of 20. The study says that Namibia's figures . Unemployment has remained stubbornly high since independence 7 Figure 6. The consumption Gini index declined from 64.6 in 1993/94 to 60.1 in 2004; to 59.5 in 2010, and further to 57.6 in 2015. and inequality conducted to date in Namibia. The analysis further shows that partition by educational attainment has become the key determinant of income inequality in Namibia, which we explain by the improvements in access to education after Independence and increasing returns to education. A World Bank report on Inequality in Southern Africa: An Assessment of the Southern African Customs Union, released today, examines the process of household income generation to identify the sources of inequality in the region. Education and main source of income are important variables in determining degrees of between-group inequality. The within-group inequality seems to be the principal determinant of total inequality. (Partly because of a legacy of apartheid policies, Namibia has been one of the world's least economically equal countries.) Namibia might be the envy to some on the continent but except only if they overlook one thing - the country has the highest income inequality. A great majority of zambians are 55 or 71% of the population is employed. It has the second-highest Gini coefficient out of all nations, with a coefficient of 59.1 as of 2015. Declining fertility enhances female labour force participation, thereby increasing women's incomes and reducing gender inequality (Bloom et al., 2009). Child malnutrition rates also fell from 42% to 17% in six months. At the current rate, about 67% of employed Namibians cannot or can barely afford to buy an average decent housing property. Income disparities are so pronounced that America's top 10 percent now average more than nine times as much income as the bottom 90 percent, according to data analyzed by UC Berkeley economist Emmanuel Saez. One study by the National Bureau of Economic Research showed Namibia as having the highest levels of wealth inequality in the world in 2000. Namibia is a higher-middle-income country with an estimated annual GDP per capita of US$5,828 but has extreme inequalities in income distribution and standard of living. Only South Africa has a higher Gini coefficient. In part, poor Namibia'seconomic performance Specifically, the report computes the Body Mass Index (BMI) of poverty and inequality. Labor force participation is low in Namibia compared to other 28 Since independence, Namibia has achieved significant progress in reducing poverty by 41 per cent and inequality on the basis of Gini Coefficient from 0.7 to 0.597 due to huge investment in social sectors, institutionalized democracy, peace and security, political stability, as well as sustained macroeconomic stability supported by prudent fiscal and monetary policies. Namibia had a gini co-efficient of 0.7 when it gained independence from South Africa in 1990, one of the highest in the world. WINDHOEK — Upon gaining independence from apartheid-era South Africa in 1990, Namibia inherited the highest levels of inequality in Africa. Vision 2030 - the country's guiding development strategy - has a subordinate vision that points to several goals: "Poverty is reduced to the minimum, the existing pattern of income-distribution is equitable and disparity is at the minimum." Figure 2. It leads the list of countries by income inequality with a Gini coefficient of 59.7 (CIA) and 74.3 (UN), respectively. income inequality, diversify Namibia's economy, and increase trade and investment opportunities. Our economic growth since independence has not been . Namibia has one of the highest rates of income inequality in the world, due in part to the fact that there is an urban economy and a more rural cashless economy. According to this definition 53% of households and 65% of individuals in Namibia live below the income poverty line at the time of the survey. For inequality, indicators like the Lorenz curve and the Gini Coefficient are applied. Namibia's Inequality Index. The proposal for a Basic Income Grant in Namibia was made in 2002 by the Namibian Tax Consortium (NAMTAX), a government appointed commission. degree these countries' current governmental policies have affected income inequality in Namibia and Tunisia. Namibia's Gini Coefficent Index is 59.1 and was most recently measured in 2015. The inequality figures thus take into account people who do not actually rely on the formal economy for their survival. Annual Symposium [on] Poverty, Income Inequality and Economic Development Bank of Namibia. One study by the National Bureau of Economic Research showed Namibia as having the highest levels of wealth inequality in the world in 2000. We find that Namibia still suffers from a skewed income distribution. The role that income inequality plays in economic growth has also received quite a bit of attention in policy circles and the press recently. The distribution of income in an economy matters and can be measured on a country by country basis by the Gini Coefficient. ON THE occasion of the 26th anniversary of political independence, Namibia remains burdened with the dubious distinction of being one of the countries with the highest income inequality in the world. It finds that the Southern African Customs Union (SACU) member countries of Botswana, Eswatini, Lesotho, Namibia, and South Africa, represent […]
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