NEW DELHI – A recent global study has revealed that in 2023, nearly half of the world’s population lived in areas where income inequality increased, despite overall economic growth across most nations. The findings, published in the journal Nature Sustainability, provide fresh insight into global disparities and underscore the urgent need to address rising inequality, even as gross national incomes have grown steadily since 1990.

According to the study, roughly 46 to 59 percent of people worldwide experienced increasing income inequality, while around 31 to 36 percent lived in regions where inequality decreased. The remaining population, about one-fourth of the global populace, lived in areas where both income and inequality had risen sharply over the same period.

The research draws on three decades of income data spanning 151 countries and highlights regional and subnational trends that are often masked by national averages. This approach allows for a more granular understanding of inequality dynamics, revealing patterns invisible in broader statistics.

Subnational Insights Highlight Regional Differences

Lead author Matti Kummu, professor at Aalto University in Finland, emphasized the importance of examining inequality at subnational levels. “This research gives us much more detail than the existing datasets, allowing us to zoom in on specific regions within countries,” Kummu said. “In many cases, national data suggests that inequality has not changed significantly, whereas subnational data reveals a very different story.”

For instance, in India, the study found significant regional variation. Northern states have largely experienced stagnant inequality, while southern states have achieved more inclusive growth over the past decades. Researchers attribute the relative success in the south—a region traditionally associated with strong left-leaning governance—to sustained public investments in health, education, infrastructure, and local economic development. These policies, according to the study, have helped ensure that economic gains are more broadly shared among the population.

Similarly, in Brazil, targeted social welfare programs have played a notable role in reducing inequality. Conditional cash transfer schemes, which provide financial support to low-income families contingent on their children attending school and receiving vaccinations, were identified as a potential factor in narrowing regional income disparities.

In China, the study observed mixed trends, with some regions benefiting from rapid economic growth while others faced widening gaps between rich and poor, reflecting uneven development patterns across the country.

Implications for Sustainable Development Goals

The study’s findings carry important implications for the United Nations’ Sustainable Development Goals (SDGs), particularly Goal 10, which aims to “reduce inequalities within and among countries” by 2030. The research highlights the persistent challenge of achieving equitable growth and the risk of rising inequality undermining broader human development objectives.

“Unfortunately, not only are we quite far from that goal, but the trend for rising inequality is actually stronger than we thought,” Kummu said. The study emphasizes that rising income inequality is not just an economic problem but also a social and political one, as widening gaps can exacerbate social tensions, limit access to essential services, and hinder inclusive growth.

Economic Growth vs. Inequality

Despite overall improvements in gross national income for 94 percent of the global population since 1990, the benefits of growth have not been evenly distributed. In many countries, rising incomes at the national level mask deep disparities at regional and local levels, underscoring the importance of moving beyond averages to understand the real dynamics of inequality.

The research also identifies patterns of persistent inequality in specific regions where economic growth has not translated into improved living standards for all. Areas with limited public investment, weak social safety nets, or uneven access to education and healthcare have seen more pronounced disparities, highlighting the role of policy interventions in shaping equitable outcomes.

Policy Lessons and Future Directions

The study suggests that addressing rising inequality requires nuanced, region-specific policies that consider local conditions rather than relying solely on national-level indicators. Investments in public health, education, infrastructure, and inclusive economic development have proven effective in some regions, as seen in southern India and certain parts of Brazil.

In addition to social spending, the research highlights the importance of conditional cash transfer programs, targeted subsidies, and other mechanisms that link social benefits to improved human capital outcomes. These interventions not only reduce immediate poverty but also have the potential to decrease long-term inequality by improving access to education and health services.

Experts argue that understanding subnational inequality trends is critical for policymakers, as national averages can conceal pockets of extreme deprivation and wealth concentration. By identifying regions where inequality is rising fastest, governments can target interventions more effectively and monitor the impact of policies on both economic growth and social equity.

Conclusion

The new study underscores a sobering reality: economic growth alone is not sufficient to ensure equitable development. While overall incomes have increased for most of the global population over the past three decades, inequality remains a pressing challenge for nearly half of the world’s people.

For countries like India, Brazil, and China, the research highlights both success stories and areas of concern, offering lessons for other nations seeking to balance growth with social equity. In particular, it points to the importance of inclusive policies, sustained public investment, and targeted social programs in reducing disparities and fostering sustainable development.

As the global community strives to achieve the SDGs by 2030, the study serves as a reminder that rising inequality threatens not only social cohesion but also long-term economic stability. Policymakers must prioritize measures that ensure growth benefits are shared broadly, addressing both the structural drivers of inequality and the immediate needs of marginalized populations.

Without concerted action, the trend of rising income inequality could continue, even as national incomes grow, reinforcing disparities and limiting opportunities for millions of people worldwide.