8 Jan 2007

GINI coefficient

I always thought this was a lousy measure,
but I realised Malaysia Gini is 0.49! This is higher than the US which is at 0.4. It is a measure of the distribution of wealth compared to an ideal in which every segment of society owns the same amount.
If it is high in rich countries it is okay because no matter what the poor is still rich by comparison(e.g. Bill Gate's billions is of many percentage points of the economy compared to my thousands but I am not poor by any standard) but in a relatively poorer nation it is bad because it means to a certain extent the elite is benefiting at the expense of the poor especially if the economy is not growing or growing slowly.
I wonder what is the Gini co-effecient among the bumiputeras. I think it highlights the Malaysian leadership's ineffectiveness more than the equity issue. And its calculations is well much more standardised. ASLI should find out.

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