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Inequality worst in decades in range of countries: OECD

AFP, Paris
he gap between the rich nd poor in a range of countries has reached its widest i 30 years and the trend as harmed growth, the )ECD said Tuesday.
The Organisation for conomic Co-operation nd Development (OECD) aid in a new report that lost of its 34 member ountries had seen a grow-ng widening in the lequalitygap.
"In most OECD coun-des, the gap between rich nd poor is at its highest :vel since 30 years," the :portsaid.
‘Today, the richest 10 ercent of the population i the OECD area earn 9.5 mes the income of the oorest 10 percent; in the 980s this ratio stood at 7:1 nd has been rising contin-ously ever since."
The OECD counts both eveloped and developing
countries as members, including nations from the European Union as well as the United States, Turkey, Mexico and Japan. China, Brazil and India are not members.
In the couple of decades leading up to the global economic crisis, average household income grew for all OECD countries by about 1.6 percent annually.
"However, in three quarters of OECD countries household incomes of the top 10 percent grew faster than those of the poorest 10 percent, resulting in widening income inequality," the report said.
During the recent postcrisis years, average household income stagnated or fell in most member countries, it said.
The gap between the rich and poor varies widely across OECD member states and is often
narrower in many Continental European nations and the Nordic countries, according to the report.
But the average income ratio between the richest 10 percent and the poorest 10 percent skyrockets in other member states.
It "reaches around 10 to 1 in Italy, Japan, Korea, Portugal and the United Kingdom, between 13 and 16 to 1 in Greece, Israel, Turkey and the United States, and between 27 and 30 to 1 in Mexico and Chile."
The report argues that expanding income inequality has negatively affected the economies of member countries, estimating that it has knocked more than 10 percentage points off growth in Mexico and New Zealand.
"In the United States, the United Kingdom,
Sweden, Finland and Norway, the growth rate would have been more than one fifth higher had income disparities not widened," according to the report.
At the same time, according to the OECD's calculations, greater equality helped boost GDP per capita in Spain, France and Ireland prior to the economic crisis.
The report called for anti-poverty programmes along with increased access to high-quality education, training and healthcare.
"The paper also finds no evidence that redistributive policies, such as taxes and social benefits, harm economic growth, provided these policies are well designed, targeted and implemented," the OECD said in a statement announcing the report.