UN policy brief reveals 'alarming' wealth gap in Arab region

Beirut (The Uttam Hindu): A UN policy brief released Thursday reveals an "alarming" widening wealth gap across the Arab region. In the policy brief, the United Nations Economic and Social Commission for Western Asia (ESCWA) said that despite household wealth holdings growing faster than the global average, the wealth gap between the rich and those living in poverty has widened markedly, particularly since 2011. "The wealth disparity between High-Income Countries (HICs) and Low-Income Countries (LICs) has grown significantly. In 2022, the average wealth of HICs in the Arab region was 31 times higher than that of LICs," said the brief "Unequal Trends in Wealth Accumulation in the Arab Region." "LICs are not just falling behind their regional neighbours but are also lagging on a global scale. This divergence threatens social cohesion and economic stability," said Khalid Abou Ismail, senior economic affairs officer at ESCWA, adding, "The widening wealth gap is alarming." The share of national wealth among the richest 10 per cent went up from 55 per cent in 2000 to 64 percent in 2022 in LICs, and up from 58 per cent to 62 per cent in Middle Income Countries (MICs), Xinhua news agency reported.

Meanwhile, their share of national wealth decreased from 74.7 percent to 69.6 per cent in HICs, the brief showed. "These trends indicate that wealth is becoming increasingly concentrated among the rich, especially in LICs, exacerbating inequality and undermining poverty reduction efforts," it said. It urged a comprehensive policy response to promote wealth equity and inclusive growth, suggesting improved financial access for low- and middle-income households, progressive taxation on high-value assets, and large wealth transfers to fund programs supporting the disadvantaged.