Global inequality has significant effects on societies, economies, political systems, and the environment. These impacts are interconnected, often compounding each other and disproportionately affecting people in the poorest nations.

Economic Effects

One of the most visible consequences of global inequality is the prevalence of poverty. Poverty manifests in two primary forms:

Relative Poverty: This refers to poverty in comparison to the average standard of living within a society. Individuals living in relative poverty may have basic needs met but are unable to afford what is considered a normal lifestyle in their community. For example, someone living in relative poverty in a wealthy country might have housing but struggle to pay for healthcare or education.

Extreme Poverty: This is defined by the World Bank as living on less than $2.15 per day and represents a lack of access to basic necessities like food, clean water, and shelter. Extreme poverty is most common in developing nations, particularly sub-Saharan Africa and South Asia, where systemic inequality, conflict, and inadequate infrastructure make it difficult to escape poverty.

Social Effects

Global inequality creates a number of social challenges, particularly in access to education, healthcare, and economic opportunities. In poorer nations, insufficient funding and weak infrastructure limit access to quality education and healthcare. This leads to lower literacy rates, higher mortality rates, and reduced productivity. These issues are compounded by gender inequality, as girls in developing countries are less likely to attend school than boys, and women often experience limited access to economic and political opportunities. Additionally, child labor remains widespread in many impoverished regions, with millions of children working in dangerous or exploitative conditions instead of attending school.

Political Effects

Global inequality has significant political consequences as well, often destabilizing nations and contributing to global unrest. Economic disparities and lack of resources fuel political unrest in many poorer countries. Citizens in these nations may experience frustration with widespread poverty, corruption, and inequality, leading to protests, social movements, and, in some cases, violent conflict. Political instability further disrupts economic development, thus reinforcing the cycle of inequality.

Environmental Effects

Global inequality causes serious problems for the environment, especially in poorer countries. These nations often suffer the most from issues like pollution, deforestation, and climate change, even though they contribute the least to these problems. Many developing countries depend on selling raw materials, like wood, minerals, and fish, to support their economies. While this helps them earn money in the short term, it often harms the environment in the long run.

Example: Cutting down trees in the Amazon rainforest to grow crops destroys animal habitats and adds carbon dioxide to the atmosphere, making climate change worse.

Climate change hits poorer countries harder because they don’t have the resources to protect themselves. Rising sea levels, extreme weather events, and long droughts are more damaging in places where roads, homes, and other infrastructure aren’t strong enough to handle these challenges. For example, small island nations are at risk of disappearing under rising oceans, and droughts in Africa make it harder for people to grow food, causing hunger and forcing families to leave their homes. Given that these nations contribute far less to greenhouse gas emissions than wealthier industrialized countries, these effects highlight the unequal distribution of environmental impact and burden.