Global Wealth Inequality – Asrar Qureshi’s Blog Post #1175
Global Wealth Inequality – Asrar Qureshi’s Blog Post #1175
Dear Colleagues! This is Asrar Qureshi’s Blog Post #1175 for Pharma Veterans. Pharma Veterans Blogs are published by Asrar Qureshi on its dedicated site https://pharmaveterans.com. Please email to pharmaveterans2017@gmail.com for publishing your contributions here.
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| Credit: Avneet Kaur |
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| Lydia Gichuki - Writer |
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| Credit: Karola G |
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| Credit: MART Production |
Preamble
This post is based on an article by Lydia Gichuki. She is a DevelopmentAid journalist based in Kenya, specializing in climate change reporting with a focus on the impacts on children and women. Her work has been featured in The Standard, Mtoto News, and other publications.
Rich World, Poor Majority: Why Poverty Persists in an Age of Wealth
On the surface, the global economy seems to surge forward. Wealth is at record highs. Yet, paradoxically, vast numbers of people remain trapped in poverty, even in societies that are rich, and in an era of unprecedented global wealth. The DevelopmentAid article “Rich world, poor majority: Why poverty persists in an age of wealth” pulls back the curtain on this contradiction, identifying structural forces and deep-rooted dynamics that allow wealth and poverty to co-exist.
Below are the core themes and implications, followed by questions about how we might move beyond this impasse.
Wealth Concentration and Inherited Advantage
Wealth accumulation today is less about innovation or risk-taking, and more about ownership of assets, inherited advantage, monopoly power, and political connections. A report by Oxfam says that something like 60% of billionaire wealth globally comes from inheritance, monopolistic rents, or political favor, rather than productive enterprise.
When capital returns outpace overall economic growth, an insight advanced by economist Thomas Piketty, then owners of capital accumulate wealth faster than workers accumulate income. This means that unless someone owns assets, their share of economic progress shrinks. In short: wealthy systems can become self-reinforcing.
This trend is not merely academic. It helps explain why, despite rising GDPs in many countries, poverty remains persistent—because gains are disproportionately captured by those who already own. Meanwhile, millions more may be working hard but accumulating little.
Resource Curse, Elite Capture & Weak Governance
Another powerful driver of persistent poverty is the “resource curse” phenomenon. Resource-rich countries, especially in Africa, should in theory transform their vast reserves into prosperity. But in reality, many such countries see extreme poverty, weak institutions, and elite capture of wealth. For instance, despite the vast mineral wealth of the Democratic Republic of Congo, more than 60% of its citizens live in extreme poverty. Resource revenues also often lead to currency appreciation (making local industries less competitive), elite capture of contracts, conflict over rents, and weak investment in human development. These structural failures mean resource wealth is not translated into broad-based growth or equitable outcomes.
Working Poor in Rich Countries
Poverty is no longer the exclusive domain of the “developing world.” The article draws attention to the fact that in high-income nations, many workers remain precarious despite full-time jobs. For example, in Europe in 2024, about 11% of full-time workers were still at risk of poverty. In the US, nearly half of the 771,000 homeless people in 2024 were employed.
The cost-of-living crisis, stagnating wages, high housing and healthcare costs, all combine to trap even the working population in precarity. This “working poor” phenomenon shows that employment alone no longer guarantees security, and that the mechanisms of wealth capture and cost escalation can erode living standards even in rich economies.
Four Structural Forces Sustaining Poverty
The article identifies four key forces that sustain the inequality dynamic:
Wealth concentration – as discussed, when capital returns exceed growth, asset owners gain disproportionately.
Debt and fiscal pressure – developing countries are spending vast sums on debt servicing; for example, in 2024, 60+ countries spent over 10% of their revenues on interest payments.
Climate-poverty trap – the poorest countries suffer most from climate change despite contributing least; the World Bank estimates 132 million more people could fall into extreme poverty by 2030 due to climate impacts.
Digital divide – digital access is increasingly essential for jobs, finance, and inclusion; yet only 36% of people in sub-Saharan Africa have internet access compared to 89% in Europe.
Each of these forces magnifies inequality and limits mobility. They show that poverty today is deeply structural, not simply a matter of individual failure or lack of effort.
The Illusion of Growth = Equity
One of the more insidious myths is that economic growth alone will automatically reduce poverty. This assumes that benefits “trickle down” to everyone. But the fact is that growth, when coupled with weak institutions, asset-led accumulation, and unequal opportunities, often magnifies inequality rather than narrowing it.
For example, resource-rich countries may post high GDP growth but still suffer high poverty rates because growth is concentrated, rent-based, and disconnected from human development. Similarly in rich countries, job creation may mask stagnating wages and rising housing/health overheads for workers.
The inference is that growth is necessary but not sufficient; inclusion, redistribution, and access matter.
Hopeful Alternatives: What a Different Future Could Look Like
The article highlights several paths forward:
Universal Basic Income (UBI) pilots – in Kenya, Spain and Finland, unconditional cash transfers improved food security, health outcomes and small-business activity without discouraging work.
Debt relief and “debt-for-climate” swaps – freeing fiscal space for countries to invest in people and services.
Fairer taxation and wealth redistribution – global discussion is growing around wealth taxes, higher minimum corporate tax, and closing loopholes for inheritances and trusts.
Digital inclusion – ensuring everyone can access internet, digital finance, and skills so they are not locked out of the modern economy.
These alternatives show that the persistence of poverty is not inevitable—it is the product of policy choices and structures. Change is possible.
What This Means for Policymakers and Practitioners
For governments, development agencies, and private sector actors, the article’s insights compel a rethink of strategy:
Growth must be inclusive: tax systems, public investment, and regulatory frameworks must ensure that gains are shared, not simply captured.
Asset ownership and wealth inheritance must be part of equity conversations—not just income.
Debt burdens and climate vulnerability must factor into development planning. Fiscal space is not unlimited.
Digital policy must prioritize access, skills, and infrastructure to level the playing field.
Data and measurement should go beyond GDP: we need to track wealth distribution, mobility, asset ownership, and social inclusion.
For practitioners: projects aimed at poverty reduction must ask: are we helping people access assets, power, or ownership—or just filling consumption gaps? Are we strengthening institutions and systems that promote equity?
Sum Up
The DevelopmentAid article reminds us that wealth in the world has never been higher. Yet poverty persists because of how wealth is distributed, how systems are designed, and how opportunities are structured. In an age of plenty, the continuing prevalence of poverty is a choice, not an inevitability.
For the billions still excluded from prosperity, the task is clear: reshape economies so that ownership, access, and power are shared; build systems that allow mobility, not just growth; and invest in structures that make inclusion central rather than incidental.
As we look ahead, the key question is not only how we create more wealth, but how we make wealth meaningful for all. Because in a truly prosperous society, the measure of success is not how much the richest have, but how many have enough to thrive.
Concluded.
Disclaimers: Pictures in these blogs are taken from free resources at Pexels, Pixabay, Unsplash, and Google. Credit is given where available. If a copyright claim is lodged, we shall remove the picture with appropriate regrets.
For most blogs, I research from several sources which are open to public. Their links are mentioned under references. There is no intent to infringe upon anyone’s copyrights. If, any claim is lodged, it will be acknowledged and duly recognized immediately.
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