Economic inequality will make it harder for countries to weather crises such as natural disasters and social unrest in the future, a study has shown, NewsNow reported. The 2015 Change Readiness Index measured the ability of governments, businesses and civil societies in 127 countries to handle economic change and take advantage of investment opportunities. It evaluated each country’s quality of governance by looking at macroeconomic frameworks, business environments and the rule of law. Researchers also considered the freedom and influence of civil society groups. Economic inequality was seen as the greatest threat for many nations, leaving them vulnerable to financial shocks, according to the CRI, which was released on Tuesday by KPMG and Oxford Economics thinktank. A recent study by Oxfam on extreme wealth inequality said 85 of the world’s richest people had the same wealth as half of the world’s population. Uneven economic growth does not reduce poverty as quickly as growth that is spread across societies, the CRI said. It also warned that worsening inequality can “lead to or exacerbate conflicts and reduce social cohesion”.
