Walking Together Indicator (WTI): Understanding and Measuring World Inequality

ABSTRACT

Socio-economic inequality may be addressed at a different scale. Its impact at a micro and macro level on very many social issues is well-known, as well as its effects on global development being extensively reported in literature, where inequality is often seen as a clear barrier on the path to a sustainable development. That becomes extremely critical in light of major global challenges, such as climate change. The quantification of inequality in the different contexts, its interpretation, as well as its impact on society at a different level are object of major interest and discussion within the scientific community. Inspired by the famous African proverb "if you want to go fast go alone;If you want to go far go together", we propose an indicator-Walking Together Indicator (WTI), based on a simple model to foster transparency and broad communication. It relies on the statistical standard deviation to facilitate the measurement of inequality looking at single metrics (e.g., GDP) as well as considering broad categories (e.g., Economy) composed of multiple indicators. Despite evident limitations, simplifications (context-less comparison among countries) and approximations (significant lack of data), the study conducted on well-known macro indicators presents a fundamental coherence in the result. Indeed, it shows a reducing inequality in the main trends. On the other side, the performed computations also point out a relevant exception for the main economic indicator, which is characterised, overall, by an increasing inequality among the considered countries. Such a contrasting trend is partially explainable looking at the simplifications in the model, which neither considers dependencies among indicators nor assumes weighting. The indicator provides a very encouraging and optimistic figure. However, the recent pandemic has shown a world running at different speeds. It advises a more conservative interpretation of the indicator as the exception related to economy is relevant.