The best and worst countries in the world at fighting inequality

Denmark is the best in the world at fighting inequality while Nigeria is the worst according to a new edition of Oxfam and Development Finance International's inequality index.

The Commitment to Reducing Inequality Index ranks 157 countries on how their governments are working in three areas that are crucial in combating economic inequality: workers' rights, social spending and taxation. The report shows wide variations in how governments are working to reduce the gap between rich and poor. Countries such as South Korea, Indonesia and Georgia are taking important steps towards reducing the gap between rich and poor, while there are countries whose efforts exacerbate inequality, including Nigeria, Singapore and Argentina. However, the report shows that all countries, even those at the top, can do much more.

"Our children don't go to school. We don't have access to good healthcare, it's for the rich."

Josephine Njeri, Kenya

The index shows, among other things, that:

- Singapore is now one of the 10 countries in the world worst at tackling inequality, ranking 149th on the list, despite being one of the world's richest nations. This is largely due to a new indicator that measures the extent to which a country's policies enable companies to avoid paying taxes. Singapore also has no minimum wage, except for cleaners and security guards.
- Nigeria ranks lowest for the second year in a row due to low social spending, worsening labor rights violations and low tax revenues. Its low ranking reflects the well-being of its population: one in ten children in the country dies before the age of five.
- Other countries such as Georgia and Indonesia have made progress. Georgia increased spending on education by 6% in 2017, the most of any country. Indonesia implemented a high 9% increase in the minimum wage last year.
- According to the index, Denmark is the best in the world at fighting inequality thanks to a long history of policies such as high and progressive taxation, generous spending on social services and one of the world's best worker protections. However, in recent years, Danish governments have cut back on many of these policies and inequality has increased rapidly.

This second edition of the index includes new indicators such as tax evasion and violence against women. For example, less than half of the countries have adequate laws against sexual assault and rape, despite the recent #Meetoo and other women's rights movements contributing to positive change.

What does inequality have to do with poverty?

Inequality undermines the fight against poverty, increases social tensions and has proven negative social, political and economic effects. The World Bank predicts that the global goal of eradicating extreme poverty will not be met by 2030, and that nearly half a billion people will live in extreme poverty unless governments tackle inequality.

While extreme poverty has been halved in the last 25 years, inequality has increased in most countries. Had inequality been reduced over the last decade, hundreds of millions more could have been lifted out of poverty.

"In short, inequality keeps people in poverty. Children die from preventable diseases in countries with underfunded health budgets, while billions of dollars are lost through tax avoidance by the wealthiest. Governments often claim to be fighting poverty and inequality - this index shows whether they are living up to their promises."

Winnie Byanyima CEO Oxfam International