Answer to Question #179715 in Macroeconomics for Moosa Qaisar

Question

Compare and contrast the GINI coefficient of South Asian Economies. Briefly explain which country in South Asia has the lowest income inequality and what are the possible reasons?

Answer 1

Afghanistan has the lowest income inequality

Rising wealth confers political power, and it has allowed economic winners to further reward themselves through government policies. As compared to other south Asian countries, Afghanistan are better in terms of retaining and abiding to government rules.