The declines have also been unprecedented, far exceeding in duration, and sometimes in depth, the declines of the Great Depression of the 1930s in the industrial countries. The result of the disparity in growth levels is that income is concentrating in the hands of the global rich. The richest 20 percent of the world's population saw their share of global income rise from 70 percent to 85 percent in the past 30 years. The share of the poorest 20 percent has dropped from 2.3 percent to 1.4 percent. The imbalances in economic growth over the past 15 years are clear enough.
Domestic inequalities are staggering as well, the report finds.
Among poor countries, the disparities are greatest in Latin America. Income inequality has also increased dramatically in recent years in Eastern Europe and the former Soviet Union. A central theme of the report is that, contrary to longstanding economic dogma, income and wealth inequality actually harms growth. The report does not romanticize growth, however. The overarching purpose of the UNDP's annual human development report is to a promote a broader measure of human well-being than narrow economic standards, and to encourage policymakers to assess their performance by the broader standard.