The Gini coefficient, which is the statistical indicator of the stratification of society and is based on consumption, has given Armenia a moderate level of inequality, says the World Bank's “Unequal Capabilities in the South Caucasus” report.

According to the report, while in Eastern Europe and Central Asia, there is some uncertainty in inequality between the Gini coefficient of 0,25 and 0,45. No deterioration in the index was observed in Georgia for 15 years, and the Gini coefficient in Armenia fluctuates from 0,30 to 0,35.

It is noted that income inequality in Armenia and Georgia as of November 2017 is considerably lower, mainly among 30 middle and low income countries. For example, Gini coefficients, calculated for final income and retirement pensions in Armenia and Georgia, were 0,36 and 0,38 respectively, which is significantly lower than the average of 30 countries, which is 0,41.

Moreover, as stated in the report, perception of property inequality by citizens is often more important than actual state of affairs as perceptions are closely related to effective political actions, such as voting, behavior or public policy. As a result, despite the rather unstable trends, the perception that inequality is growing is widespread among the population of Armenia and Georgia.

More than 75% of respondents in Armenia and 60% in Georgia think that inequality is widening. Armenia differs with the fact that 80% of the population finds that the difference between the rich and the poor should be eliminated, which is one of the highest in the region, and Georgia is among the countries in the region where the same opinion is relatively small.

Experts believe that such an approach of the population is associated with some difficulties with regard to the inequality of people’s opportunities, as well as the low transparency of resources distribution, which increases the dissatisfaction among people. In Armenia, this question is most acute, not so much between the poor and the rich, but there is a huge gap between the poor and the middle classes as well as the poor and oligarchs who, in the early 1990s, accumulated an incredibly large number of uncontrolled privatizations and other illegal ways wealth. Thus, according to experts, "the social contract collapsed" and most of the population realized that they had encountered problems with unequal access to competitive and improperly regulated markets. This is a process where even good education and significant efforts do not contribute to the well-being.

The material is copyrighted and protected by law