The big idea: Global inequality is the huge gap in income, wealth and opportunity between the world's richest and poorest, both between countries and within them.
Why it matters
- It is one of the defining features of global politics.
- It shapes power, migration, conflict and justice.
- Whether it is rising or falling, and why, is fiercely debated.
- Between countries — the gap between rich and poor nations' average incomes.
- Within countries — the gap between rich and poor citizens inside a state (measured by the Gini coefficient).
- Wealth vs income — wealth (assets owned) is even more unequal than income (earnings).
- Of opportunity — unequal life-chances: where you are born shapes your health, education and prospects.
Inequality is about power, not just money: Global inequality is not only an economic fact — it is a political one.
How wealth becomes power
- Vast gaps in wealth translate into vast gaps in power.
- Rich countries and rich individuals shape the rules of the global economy, while the poor have little voice.
- Inequality drives migration, resentment and instability.
- It raises deep questions of justice: is such inequality fair, and what, if anything, is owed to close it?
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The trends are contested: global poverty has fallen dramatically, yet inequality within many countries has risen, and the gap between the very richest and everyone else has widened. What is happening depends on which inequality you measure.
The optimistic story
Global inequality BETWEEN countries has narrowed as large developing economies grew rapidly and lifted hundreds of millions out of extreme poverty, so the gap between the average person in rich and poor countries has shrunk — a genuine, historic improvement driven by growth and globalization.
The pessimistic story
But inequality WITHIN many countries — rich and poor alike — has risen sharply, the wealth of the very richest has soared while many stagnate, and the poorest countries and people have been left further behind. So while absolute poverty fell, relative inequality and the concentration of wealth at the top have grown.
Case study — poverty falling while inequality rises: The headline picture of global inequality is genuinely double-sided: the same era saw poverty fall and inequality rise.
Getting better
- The rapid growth of large developing economies has cut extreme poverty dramatically.
- The gap between rich and poor countries has narrowed.
- Hundreds of millions were lifted from destitution.
Getting worse
- Inequality within many countries has widened.
- The share of wealth held by the richest few has soared.
- The poorest countries have fallen further behind.
The HL lesson
- 'Is inequality getting better or worse?' has no single answer.
- It depends on whether you mean poverty or inequality, between or within countries, income or wealth.
- Each has different political and justice implications.
The key point: Global inequality is the vast gap in income, wealth and life-chances between and within countries. It is a matter of power as much as money.
The trends are double-sided
- Extreme poverty has fallen and gaps between countries narrowed.
- But inequality within many countries and the concentration of wealth at the top have risen.
- So 'is it better or worse?' depends on what you measure.
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Is global inequality unjust — or just the result of different choices and effort? Is it rising or falling? And is anything owed to close it? Weigh it — and recommend.
The case that global inequality is unjust
Most of a person's income is explained by WHERE they were born — pure luck, not effort — so vast global inequality reflects an unfair global order, not merit; and the rich shaped the rules of trade, finance and debt in their favour, so the inequality is partly a product of power, not just markets. On this view, closing it is a demand of justice.
The case that some inequality is acceptable
Others argue that inequality partly reflects effort, skill and choices, that some inequality creates incentives that drive growth which lifts everyone, and that the dramatic fall in absolute poverty matters more than the gap; so the goal should be ending poverty and ensuring opportunity, not equalising outcomes.
Two perspectives — weigh them: One view: global inequality is fundamentally unjust — driven by luck and power, not merit — so justice demands closing it. Another view: some inequality is acceptable (effort, incentives), and ending poverty matters more than the gap.
The strong HL judgement
- Extreme global inequality is unjust.
- It largely reflects the accident of birth and the power to shape the rules.
- So the priority is both ending absolute poverty AND curbing the extremes and the concentration of power they create.
How global inequality comes up in Paper 3: Paper 3 stimulus might show inequality data, wealth concentration, or a gap between countries.
What to do with it
- Analyse WHAT kind of inequality and WHY it matters (power, justice).
- Then recommend a response.
- Usually: ending poverty + curbing extreme concentration + fairer global rules.
How Paper 3 rewards you (HL)
Understand
Show you understand the challenge and the stimulus material accurately.
base
Analyse
Break the challenge down — causes, actors, perspectives — using the material.
analyse
Recommend
Propose and justify a course of action — the Paper-3-specific skill.
recommend
Synthesise
Pull the material together into a judged, evaluated response.
top
Recommend how the international community should respond to extreme global inequality.
Model answer plan
See the mark-by-mark plan — for / against / judgement, with marking guidance — in study mode.
Common mistakes (Paper 3): 1. Confusing poverty with inequality. They can move in opposite directions.
2. Treating inequality as only economic. It's about power.
3. One-sided trend claims. Poverty fell AND inequality rose.
4. Only describing. Analyse + recommend.
5. Aiming to equalise all outcomes. Target poverty and extremes.