A Comparative Study of Inequality in Kenya and South Korea, 1960s - 2014

Abstract

Inequality is the state in which resources and power are distributed unevenly and, therefore, people are divided into two groups: one with wealth and power and the other without. Even though inequality exists in every society, it must be resolved due to its negative impact on poverty reduction, economic growth, and socio-economic stability. Kenya and South Korea were in a similar economic situation in the early 1960s with substantially low GDP per capita and high poverty incidence. However, Kenya is one of highly unequal African countries while South Korea belongs to the 'East Asian Tigers', countries which successfully achieved sustained high economic growth with low and declining levels of inequality. This research examines changes in income and non-income inequality in Kenya and South Korea for the last 50 years using various indicators. The study tries to find out reasons why inequality levels have changed differently between the two countries and seeks lessons for resolving inequality and promoting inclusive growth. The findings of the research suggest that it is critical to provide decent job opportunities, expand educational opportunities, increase access to national health services, and invest in health sector for reducing income and non-income inequality and promoting growth with equity.