Goal 10: Reduce inequality within and among countries

Goal 10 calls for reducing inequalities in income as well as those based on sex, age, disability, race, class, ethnicity, religion and opportunity – both within and among countries. World leaders recognized the positive contribution of international migration to inclusive growth and sustainable development, while acknowledging that it demands coherent and comprehensive responses. Accordingly, they committed to cooperate internationally to ensure safe, orderly and regular migration. The Goal also addresses issues related to representation and development assistance.

Many countries in Latin America and the Caribbean and Asia saw a decline in income inequality

When income growth among the poorest people in a country is faster than the national average, income inequality is reduced. In 56 out of 94 countries with data for the period 2007−2012, the per capita income of the poorest 40 per cent of households grew more rapidly than the national average. This was especially true in Latin America and the Caribbean and in Asia, where 88 per cent and 67 per cent of countries, respectively, saw gains for the poorest 40 per cent of households. That said, faster growth for the poorest does not necessarily imply greater prosperity, since nine of the 56 countries experienced negative income growth rates over this period.

Proportion of countries in each region with the bottom 40 per cent of the population having greater average annual growth rates of real income per capita of than the national average, 2007−2012 (percentage)

Note: The chart represents 94 countries with data: 43 in developed regions, 16 in Africa, 19 in Asia and 16 in Latin America and the Caribbean.

Labour’s contribution to GDP has decreased across most regions

The share of GDP that is attributed to labour has been trending downward over the past 15 years as processes have become more mechanized and capital assumes a growing share of GDP. Over this period, the labour share of GDP only increased in Oceania and Latin America and the Caribbean, where it was at 48 and 52 per cent, respectively in 2015. Eastern Asia saw flat growth of labour share of GDP and continues to maintain the highest share in the world at 61.4 per cent of GDP. While the labour share of GDP fell from almost 58 per cent in 2000 to just over 55 per cent in 2015 for developed regions, developing regions experienced a slight improvement to 55 per cent. Stagnating wages across all regions contributed significantly to these results.

Labour share of GDP (PPP), comprising wages and social protection transfers, 2000 and 2015 (percentage)

The share of imports from LDCs and developing countries that enter developed countries duty free has been continuously on the rise

The share of exports from LDCs and developing countries that benefited from duty-free treatment increased from 2000 to 2014, reaching 84 per cent and 79 per cent, respectively, although the pace of change was faster for developing countries. The comparative advantage of LDCs in duty-free access varied depending on the product groups: almost all agricultural products from LDCs (98 per cent) were exempted from duties by developed countries versus 74 per cent of products from developing countries. The relative advantage for LDCs was even greater for textiles and clothing: rates for both product groups were around 70 per cent for LDCs; for developing countries, the rates were 41 per cent for textiles and 34 per cent for clothing.

Proportion of imports (excluding arms and oil) from least developed countries and developing countries entering developed countries duty free, 2000−2014 (percentage)

The cost of sending money across international borders has declined

Migrants contribute positively to inclusive growth and sustainable development. They also contribute to the development of their countries of origin and destination through their work and through the remittances they send home. Total remittances to developing countries increased slightly in 2015 to 431.6 billion US dollars (up 0.4 per cent from 2014), but the cost of sending money across international borders remains high. Even though the cost declined from 2012 to 2015, it still averaged 7.5 per cent of the amount remitted in 2015, more than double the target rate of 3 per cent.

World average cost of sending $200 equivalent remittance as a proportion of amount remitted, 2008−2015 (percentage)