Argentine Economic Crisis - Effects On Wealth Distribution

Effects On Wealth Distribution

Although GDP grew consistently and quickly after 2003, it only reached the levels of 1998 (the last year before the recession) in late 2004. Other macroeconomic indicators followed suit. A study by Equis, an independent counseling organization, found out that two measures of economic inequality, the Gini coefficient and the wealth gap between the 10% poorest and the 10% richest among the population, grew continuously since 2001, and decreased for the first time in March 2005.

Poverty in Argentina
Date of
measurement		 Extreme
poverty		 Under
poverty
line
May 2001 11.6% 35.9%
October 2001 13.6% 38.3%
May 2002 24.8% 53.0%
October 2002 27.5% 57.5%
May 2003 26.3% 54.7%
2nd sem 2003 20.5% 47.8%
1st sem 2004 17.0% 44.3%
2nd sem 2004 15.0% 40.2%
1st sem 2005 13.6% 38.5%
2nd sem 2005 12.2% 33.8%
1st sem 2006 11.2% 31.4%
2nd sem 2006 8.7% 26.4%
2nd sem 2007 5.9% 20.6%
1st sem 2008 5.1% 17.8%
2nd sem 2008 4.4% 15.3%

The table on the left shows statistics of poverty in Argentina, in percent of the population. The first column shows the date of the measurement (note that the method and time changed in 2003; poverty is now measured each semester). Extreme poverty is here defined as not having enough money to eat properly. The poverty line is set higher: it is the minimum income needed for basic needs including food, clothing, shelter, and studies.

Similar statistics are available from the World Bank.

Read more about this topic:  Argentine Economic Crisis

Famous quotes containing the words effects, wealth and/or distribution:

    “Corporate America will likely be motivated to support child care when it can be shown to have positive effects on that which management is concerned about—recruitment, retention and productivity. Indeed, employers relate to child care as a way to provide growth fostering environments for young managers.”
    —Dana E. Friedman (20th century)

    “In general, Russia suffers from a frightening poverty in the sphere of facts and a frightening wealth of all types of arguments.”
    —Anton Pavlovich Chekhov (1860–1904)

    “The question for the country now is how to secure a more equal distribution of property among the people. There can be no republican institutions with vast masses of property permanently in a few hands, and large masses of voters without property.... Let no man get by inheritance, or by will, more than will produce at four per cent interest an income ... of fifteen thousand dollars] per year, or an estate of five hundred thousand dollars.”
    —Rutherford Birchard Hayes (1822–1893)