Here, We Are Equal

Posted on May 18th, 2010 at 3:16 pm by Akhyari


A few days ago, I had no idea what the Gini Coefficient was. You probably don’t have a clue either other than what is in the headline.

Imagine a country where the median income is something like $40,000 a year and the top 1% of the population earned 10 times that. This is known as income inequality (or disparity). By itself this doesn’t seem like a really big deal. But what if the top 1% started earning 15 times what the median was making? The disparity has grown!

The Gini Coefficient measures the income inequality among the entire population of the country. The higher the number, the more income is being taken in by a small group. Likewise if most of the money is being made by the majority of the population, the lower the Gini Coefficient will be.

Where’s Indonesia’s position in this? Allow me to provide you the data (from Wikipedia)

Malaysia 49.2
China (PRC) 46.9
Philippines 44.5
Singapore 42.5
Thailand 42
Cambodia 41.7
India 36.8
Laos 34.6
Vietnam 34.4
Indonesia 34.3
South Korea 31.6
Japan 24.9

From the data, you can see that Indonesia’s income distribution is better than all ASEAN countries, China, worse only compared to Japan, and South Korea.

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