Where Singapore lags behind India, USA

Communist China ranks way below capitalist USA when it comes to distribution of wealth. China ranks 92nd and the USA 73rd, acccording to the UN Human Development Report 2006. It says China has a Gini index of 44.7 and the USA 40.8. Russia ranks 68th with a Gini index of 39.9. The Gini index is a measure of social and economic inequality, the higher the figure, the greater the inequality.

I wonder what the communists in power in Calcutta (Kolkata) will have to say to that. There is less economic inequality in India, which ranks 29th in the world with a Gini index of 32.5, according to the report. Bangladesh is 28th with 31.8 and Pakistan 24th with 30.5.

The rankings mentioned so far should not be taken to mean that the poorer the country, the less the inequality. Far from it. While oil-rich Azerbaijan takes the top spot, or shows the least economic inequality, with a Gini index of 19, Denmark ranks second with 24.7, Japan third with 24.9, Sweden fourth with 25. They are all rich countries. The Czech Republic is fifth, Norway sixth, Germany 14th, Netherlands 25th, South Korea 27th, Canada 30th, France 32nd, Switzerland 37th, Ireland and Greece joint 40th, Spain 47th, Australia 48th, Italy and Britain joint 51st and New Zealand 54th.

I looked at the report to find out how equitable is Singapore. The tiny city state with a population of about 4.5 million is the second richest country in Asia, after Japan, with a per capita GDP of $28,077. But the Singapore government concerned about poor Singaporeans has decided to raise the Goods and Services Tax -- sales tax -- from 5 per cent to 7 per cent, partly to help them. But how big is the income gap in Singapore? Very big, according to the UN report.

Singapore ranks 8oth with a Gini index of 42.5, behind Burundi (41st), and tying with Kenya which shows the same inequality, out of the 126 countries surveyed. Namibia ranks last.

Neighbouring Malaysia trails behind Singapore, taking the 98th spot with a Gini index of 49.2, but Indonesia is far ahead, sharing the 40th place with Ireland, with a Gini index of 34.3. Thailand is ahead as well, in 77th place with a Gini index of 42, but Hong Kong is behind, coming 85th with a Gini index of 43.4.

The Singapore government is well aware of the economic disparity in the country.

"Yes, the Gini coefficient is very high. Through housing, health care and education, we have tried to narrow the income gap, but not through wages," National Development Minister Mah Bow Tan told Reuters in an interview last month, said a Reuters report published on the CNN website three days ago.

Despite the economic disparity, Singapore ranks very high on the Human Development Index, which takes into account life expectancy, literacy and the GDP. Singapore is ranked 25th in the UN report with a Human Development Index (HDI) of 0.916. The only Asian countries ahead of it are Japan in the seventh spot with an HDI of 0.949, Hong Kong which ranks 22nd with 0.929 and Israel which ties with Hong Kong.South Korea is 26th with 0.912.

The rankings have appeared in Wikipedia but one could also look at the country factsheet for Singapore on the UNDP website. One should also read the Reuters report on Singapore. It's an objective look at the country.