How Economic Inequality Harms Societies In Developing Countries

Inequality dampens investment and growth by fueling economic, financial, and political instabilities Clemence Mupfunya Less equal societies have less economic stability. Rapid levels of income inequality are associated to economic instability, financial crisis, debt and inflation. Economic inequality refers to how economic attributes are rationed among individuals in a society, among groups in a population or among countries or regions. Economic inequality is a challenge before democracy because it is negatively influencing the civic, political and social life of the citizens. Widening inequality also has significant implications for growth and macroeconomic stabilisation. The rise in economic inequality in developing countries is tied to several factors.