3.4 Inequality & Poverty (DP IB Economics: HL)

Extract A, Paragraph 1

Tunisia experienced growing income disparities in 2023 despite overall GDP growth of 4%. The top 20% of households received 48% of national income, while the bottom 20% received only 5%. The National Statistics Institute reported that while average incomes rose, the benefits were unevenly distributed. Urban professionals saw income gains of 25%, while rural agricultural workers' incomes stagnated. The World Bank expressed concerns about the widening income gap's social implications.

Extract A, Paragraph 1

Uruguay implemented comprehensive tax reforms in 2023. The top marginal tax rate increased from 30% to 42% for incomes above $100,000, while those earning below $20,000 saw tax rates decrease from 10% to 5%. Corporate tax rates became progressive based on company size. The Finance Ministry estimated that the reforms would increase social program funding by 25%, particularly benefiting education and healthcare access.

Extract A , Paragraph 1

Rwanda implemented comprehensive education reforms in 2023. The government introduced free secondary education, vocational training programmes, and adult literacy classes. Transportation subsidies supported rural student attendance. Teacher training programmes expanded, while new technology centres opened in underserved regions. The Ministry of Education reported enrolment increases of 40% in previously disadvantaged areas.

Extract A, Paragraph 2

Zambia's copper mining sector showed stark inequalities in 2023. While the industry generated 40% of GDP, local communities remained impoverished. Foreign mining companies repatriated 85% of profits while employing only 2% of the workforce. Rural communities lacked access to education and healthcare facilities. The World Bank noted that limited skill development opportunities perpetuated the cycle of poverty.

Extract C, Paragraph 2

Mozambique struggled with persistent poverty in 2023 as literacy rates remained at 45% and access to healthcare reached only 60% of the population. Average incomes stagnated at $2 per day, while malnutrition affected 40% of children. The World Bank noted that limited education affected workforce productivity, while poor health outcomes further constrained economic advancement. Government data showed that 70% of workers remained in low-wage informal employment.