Gini Index

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Gini index points out the distribution of income in the country from poor to rich. To get this index, we use Lorenz curve. It has two axes: x and y. Axis x gives the percentage of households from the lowest to the highest income, and axis y indicates the percentage of income earned. Percentages on both axes fluctuate from 0 to 100%. Between these axes there is a curve. It’s always drawn at 45 degrees. The lower is the index, the better income distribution in the country. So, for the past 20 years the Gini index for Morocco changed from 39.20 % in 1991 to 40.88 in 2007 (IndexMundi). If index is close to zero, it is a perfect number, because people’s income in the country is almost equal. But from the information derived on the World Bank site (The World Bank), I can state that people’s income between poor and rich differs a lot, though the coefficient has only slightly increased for the past 20 years. It’s is not good, because it shows that inequality rate increases.

Due to this chart, 40.88% of working people in Morocco earn most of the income in this country and only 59.12% get the rest.

According to this chart (A. Fosu et.al., p.93), 20% of the poorest population in Morocco earn only 6.7% of all income in the country, while 20% of the richest population earns more than half of overall income in the country. This means that the richest 20% earn almost 9 times more of the income than 20% of the poorest. This difference is quite big, but if we compare the Gini index with some other countries, let’s say Latin America (A. Fosu et.al., p.96), then it’s rate is even hire, about 50.3%. On the one hand, it is not satisfactory, because the income gap between these layers of society is essential, but, on the other hand, the country is not fully monopolized, which gives the opportunity for different enterprises to develop and grow.

Anyway, there is always the way out. I think that households could improve their financial situation if authorities increased the literacy level. On my opinion, the high rate of educational inequality could be the main reason of poverty in Morocco. It is 45.8% (Human development report, p.4), which is an enormous number. Morocco needs reforms, educational first of all, and then working reforms, which will increase the number of working female population. 

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