As the President of Kazakhstan Kassym-Jomart Tokayev noted: “Social inequality – the conditions under which people have unequal access to social goods such as money, power and prestige – occurs in any society. According to the Gini coefficient, (this is an indicator that reflects income inequality in Kazakhstan) 10% of the wealthiest population of the country had 24.61% of the total income, and 10% of the least affluent population had a share of 4,15%, so the difference between incomes was 5,9 times".
About inequalities
“Where there is a great property, there is a great inequality. There must be at least five hundred poor people for one very rich person, and the abundance of few implies the poverty of many,” - says Adam Smith, a Scottish economist.
Among the existing inequalities in the modern world, there is also an economic one, which, in turn, is divided into inequalities of wealth and income. Their reasons can be principles such as industrialization, technological development and social factors: classes, discrimination.
The given line chart displays how the percentage of income in seven different countries changes over 40 years, from 1975 to 2015.
The blue indicator of the US increased its index sharply, while Italy (red), France (pink) and Japan (green) did not even reach the peak how US, UK (orange) and Canada (yellow) did.
However, estimates of inequality may be different from those in shown statistics due to unrecorded income.
Let's go to Wikipedia
According to Wikipedia, "Europeans hold more money offshore than Americans."And perhaps even because of this reason, this problem is not entirely clear - not all income and property are available for analysis. But already outwardly observing the development of the economies of countries, the economic inequality between social classes is becoming more and more noticeable.
It can be seen from open sources that there is also a difference in incomes in Kazakhstan.
Among the ways to balance, it may be the development of social conditions in addition to raising wages. The poverty rate in Kazakhstan, in turn, is significantly low – less than 1 percent.
However, as mentioned earlier – there is also unofficial data regarding income, which, if revealed, can change the country's analytics in the future.
Is there a solution?
As part of the ongoing reforms, the President Kassym-Jomart Tokayev – emphasizes that in order to stimulate business activity in Kazakhstan, there is a need to form a fair, stable and transparent tax system. At the same time, the President specifically notes:
“Highly profitable large enterprises and companies exporting raw materials should pay more to the treasury. This practice has long and successfully been established in the world. And that's fair."
Tax policy is one of the common ways to regulate inequality by requiring more taxes from rich people. Also, another great solution is education, which allows students to gain the skills that are required at the moment for increasing profits.
Currently, this topic is becoming relevant along with other problems related to inequalities.
It is also important to pay appropriate taxes, improve education and maintain social norms, because economic inequality can adversely affect the economies of countries over time, and, given the likely development of overpopulation, nations and governments must take actions against growing inequality now.
Amira Kadyr
