Monday, 14 April 2008

I dream of a better Gini

For those who are not familiar with Gini Coefficient it is measure of statistical dispersion most commonly used to measure inequality in income distribution. The value used is between 0 to 1. 0 being perfect equality while 1 is perfect inequality. Basically, it's says how equal is the distribution of wealth in a given study.

In the case of Malaysia, based on survey in 1997 that was published in 2007 by World Bank we are rated at around 0.492 or 49.2 %. Looking at the table, highest 10% of the population owns 38% of the nation wealth. Looking at top 40% of the population owns 74.6% of wealth, while more than half of that wealth is concentrated within the top 10% of the population (38.4%). The rest of the 60% of population owns just 25.4% of the nation wealth. This is a terrible indicator of our distribution of wealth. It just shows that we have a skewed economy where only a small minority of the people (1/10) own more than 1/3 of the nations wealth. That was in 1997.

I fear to know the current situation.

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