Measuring levels of inequality, rather than simply tracking absolute poverty levels, has become a watchword for economists of late, with some believing it is the uneven distribution of wealth that is one of the key factors driving political discontent and disenfranchisement globally.
At the World Economic Forum in Davos in January, the head of the International Monetary Fund, Christine Lagarde, said increased inequality was one of a number of factors leading to the rise of populism around the world – adding she had first warned of these dangers four years ago, but that after the victory of Donald Trump in the US and the increasing popularity of far-right parties across Europe, she hoped people would now pay it more attention.
A recent report by Credit Suisse showed that Russia is the most unequal of all the world’s major economies. The richest 10% of Russians own 87% of all the country’s wealth, according to the report, compared with 76% in the US and 66% in China. According to another measure, by VTB Capital, 1% of the Russian population holds 46% of all the personal bank deposits in the country. [...]
Approximately 23 million Russians – about 16% of the population – now officially subsist below the poverty line, and there are increasing signs that the huge concentration of wealth in the hands of a tiny percentage of the population is starting to annoy more Russians – especially as many of the richest people are government officials, or those close to them. A recent report found that 41% of Russians say they struggle to get enough money together for food and clothing.
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