This article is focused on the following UN Sustainable Development Goal:
People worldwide are constantly dealing with many inequalities, with income being one of the most significant factors. Income is one element that influences and measures inequality; others include gender, age, origin, ethnicity, handicap, sexual orientation, class, and religion.
Algeria has been facing income inequality for decades. Income inequality is measured and recorded using the Gini index. The Gini Index also known as the Gini coefficient is a way of measuring how income is distributed across a population. The coefficient has a value between 0 and 1, where 0 (0%) implies complete equality and 1(100%) indicates complete inequality. A higher index score implies the country having a greater inequality, with a far higher proportion of the population's income going to wealthy earners, the difference between the rich and the poor is now at 27.7%, having gone down from 40.2% in 1988.
As of 2011 Algeria has a Gini coefficient of 72. 4.
Lower middle income Algeria
Algeria’s high coefficient unintentionally fuels poverty. Nearly 75% of Algeria's poor people work informal occupations in cities or rely on subsistence farming. Due to regional differences, the Sahara region of Algeria has twice as many poor people as the rest of the country, and the Steppe region has three times the national average as many poor people. Statistics show that 6.3% of the population is living below 50% of median income as of 2011.
The definition of GNI according to OECD Data, “Gross national income (GNI) is defined as gross domestic product, plus net receipts from abroad of compensation of employees, property income and net taxes less subsidies on production” ((“National Income”). You might have also heard of something called the GDP. The GDP is the gross domestic product. It analyzes the size and growth rate of an economy by examining its level of production or the total annual value of the goods and services produced in the country. The GNI however is the entire dollar amount of everything that a nation produces and the income that its citizens make, whether they do so domestically or overseas. Algeria's GNI per capita is falling, which is concerning. This demonstrates the decline of Algerians' economic and financial circumstances, which have gotten worse for the past couple years. The World Bank has labeled Algeria as a lower middle-income country, but with the decline of its economy, it is at risk of becoming a low income country.
To conclude, Algeria’s economy has been declining, there is a very apparent gap between the rich and poor, it is at risk of becoming a low income country, and all these factors might lead to poverty amongst certain people.
Remember, change starts with you.
“Algeria | Data.” Data.worldbank.org, data.worldbank.org/country/DZ. Accessed 21 Jan. 2023.
“National Income - Gross National Income - OECD Data.” TheOECD, data.oecd.org/natincome/gross-national-income.htm#:~:text=Gross%20national%20income%20(GNI)%20is. Accessed 21 Jan. 2023.
“Poverty Has Fallen in the Maghreb, but Inequality Persists.” World Bank, 17 Oct. 2016, www.worldbank.org/en/news/feature/2016/10/17/poverty-has-fallen-in-the-maghreb-but-inequality-persists. Accessed 21 Jan. 2023.
“Poverty in Algeria.” Wikipedia, 12 Nov. 2022, en.wikipedia.org/wiki/Poverty_in_Algeria#:~:text=Challenges%20facing%20Algeria. Accessed 21 Jan. 2023.
United Nations. “Inequality – Bridging the Divide | United Nations.” Www.un.org, 2020, www.un.org/en/un75/inequality-bridging-divide. Accessed 21 Jan. 2023.
“World Bank Downgrades Algeria to Lower Middle-Income Status – the North Africa Post.” North Africa Post, 5 July 2020, northafricapost.com/42186-world-bank-downgrades-algeria-to-lower-middle-income-status.html. Accessed 21 Jan. 2023.
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