How 'frugal innovation' can fight off inequality
By Jaideep Prabhu, Cambridge Judge Business School Inequality is the defining social, political and economic phenomenon of our time. Just 1% of the world’s population now holds over 35% of all private wealth, more than the bottom 95% combined. Bad as this may seem, trends suggest that the situation will only get worse. Addressing it will involve multiple strategies working together, but one which is less well understood is how simple, affordable solutions to people’s problems can make a genuine difference from the bottom up. One way of measuring inequality is known as the Gini coefficient. It gives us a useful and straightforward number between zero and one, where zero represents perfect equality where everyone has the same income, and one expresses the maximum of inequality. In the countries which make up the Organisation for Economic Cooperation and Development (OECD) the Gini was at 0.28 in the mid-1980s, but increased by 10% to 0.31 by the late 2000s. ...