Variations in living standards in the global economy

Despite the increasing integration of the global economy, large differences in living standards between countries have persisted and even worsened in recent years. This is evidently indicated by the stark differences in the levels of economic development and growth across the global economy, suggesting the wide gaps between wealthy and poor nations. Almost 80% of GWP income is dominated by just 15% of the world's population whilst the rest of the 20% is shared by 85%. While international organisations …

…have population problems because of their high birth rates and larger families, placing a greater strain on their scarce resources. These global and domestic factors clearly contribute to the high levels of variation in living standards. Addressing the causes of inequality would require structural changes in the global economy especially to the trade and financial sector, and also reforms within developing countries. However, current indicators suggest a continuation of these inequalities for the foreseeable future.