Income and wealth distribution in Mexico

Income and wealth distribution in Mexico

Income gap seems to increase, wealth is not equally distributed.

1.       In 2005, the per person income for the richest 10% of the population in Mexico was $44,035. This figure is over four times the national average, indicating that per person income in Mexico is very unequally distributed. Gini index values range from 0 (perfect equality) to 100 (extreme inequality with all wealth in the hands of a single individual). Mexico’s Gini index of 48 is high, indicating that inequality remains a real issue.

2.       There are some figures we need to take note: 44.2% of the population, which means 49 646 658 people, is living blew the poverty line. 10.3% of the population, 11 793 889 people, is living under extreme poverty.

3.       In the last 25 year, the “real” (adjusted for inflation) income of the richest 10% of Mexican households has risen by 1.7%, compared to only 0.8% for the poorest 10% of households. The average income of the richest 10% of households in Mexico is now a staggering 26 times higher than the average income for the poorest 10% of households. In 2008, the richest homes in Mexico had an average income of 228,900 pesos (about 20,800 dollars at the then exchange rate), compared to just 8,700 pesos (790 dollars) for the poorest 10% of homes.

Environmental impacts

Due to weak law enforcement and abuse of policy, the environment degradation continues.

1.       Recent figures from INEGI suggest that Mexico has lost almost 50% of its native forests due to logging and clearance for farming and settlement.

2.       Gene-modified food such as corn is imported from U.S. This causes problem for Mexican farmers, the gene modified corn put the threat on the native corn and other plants.

3.       Increasing number of factories and car population causes air pollution in major cities. Industry accounts for 17% of total sulfur dioxide emissions, and less than 1% of total particulate emissions. Services account for 44% of the sulfur dioxide emissions, and transport a further 38%. Most particulates came from unpaved roads (65% of the total) and from wind-blown soil erosion (31%). Almost all the carbon monoxide (99%) and nitrogen oxide (92%) added to the air came from transportation.

Potential benefits:

Increasing awareness of the importance of the environmental conservation when people become more educated

There are technology available for minimizing the hazardous impact brought by economic growth

Data released by the UN Environment Programme (UNEP) puts Mexico in a lofty 4th place worldwide for the number of trees planted since UNEP began its “Billion Trees Campaign” in 2007.