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Data InsightsGlobal inequality is the result of two centuries of uneven economic growth

Global inequality is the result of two centuries of uneven economic growth

A line graph depicting GDP per capita from 1820 to 2022, with the vertical axis representing GDP in international dollars and the horizontal axis showing the years. Multiple colored lines represent different regions: 

- A purple line for "Western offshoots" (United States, Canada, Australia, and New Zealand), showing the highest GDP per capita, peaking just above $60,000 in 2022.
- A dark blue line for "Western Europe," also showing significant growth and stabilizing around $50,000.
- A light blue line for "East Asia," indicating gradual growth.
- An orange line for "Eastern Europe," displaying a more moderate increase.
- A green line for the "Middle East and North Africa," showing slow growth throughout the years.
- A brown line for the "World" that climbs steadily.
- An olive line for "Latin America," with modest growth.
- A purple line for "South and Southeast Asia," showing the lowest GDP per capita.
- A teal line representing "Sub Saharan Africa," showing minimal gains.

Additional information indicates the data is sourced from Bolt and van Zanden's Maddison Project Database, with a note that it is expressed in international dollars based on 2011 prices. The graph is attributed to "Our World in Data" and is labeled with a Creative Commons license (CC BY).

For most of history, almost everyone everywhere was very poor. Hunger was common, half of the children died, and, as the chart shows, average incomes were low across all regions.

The chart also shows how people’s incomes have changed over the last two centuries. The chart highlights a stark divergence: while average incomes in every region have increased, the pace of this growth has varied enormously. Western Europe and the “Western Offshoots” (like the US and Australia) experienced early and sustained economic growth. Meanwhile, Sub-Saharan Africa and South Asia grew much more slowly.

Two hundred years ago, people in all regions were similarly poor. Today, the average incomes of people in Australia, the US, or Denmark are more than 15 times higher than those in Sub-Saharan Africa.

I wrote an article on how economic growth is possible and why it is important: “What is economic growth?” →

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