Income Inequality in Iran Essay -- Iran Poverty and Inequality

There are many problems that face Third World nations. Income inequality affects all nations in the world. It affects some countries more than others though. Income inequality is a major problem in the Third World. In the Third World, the top 1% of people earns 15 % of the income, and the top 5% earn 40% of the income. However the poorest 20% earn only 1% of the global income. This creates a world of haves and have nots. This affects many aspects of society in a county. In the Islamic Republic of Iran, income inequity is a serious issue. One social service that is affected greatly is education. Areas that are poorer do not get the same level of education as areas that are richer receive. This inequality in education is caused by the unequal distribution of wealth that is in Iran because of the unequal distribution of oil revenues throughout Iran. In order to understand income inequality in Iran, one must first look at the basic economic facts of Iran. Iran has a population 77,176,930 people. 70% of its citizens live in urban areas such as Tehran, Mashhad, and Tibriz while 30% live in the rural areas. Urban and rural populations will come up later in the analysis of inequality in Iran. The Gross Domestic Product (GDP) for Iran in2012 was $548.590 billion. That ranked Iran 21st in the world. The per capita income for each head of household in Iran in 2012 was $7,207, which was 76th in the world. The Human Development Index (HDI) for Iran for in 2013 is 0.742, which is 76th in the world. That is in the middle range of countries for the HDI; below most developed nations but high for Third World nation. Iran is a semi-industrialized nation with some manufacturing industries and a heavy reliance on oil revenues f... ...r, â€Å"The Roots of Iran’s Inflation† Susman, â€Å"Income Inequality and Poverty in Iran.† United States Government Accountability Office,â€Å"US and International Sanctions Have Adversely Affected the Iranian Economy† http://www.gao.gov/assets/660/652314.pdf (Viewed December 1, 2013, 8:45 EST) Raghfar, â€Å"The Roots of Iran’s Inflation† Susman, â€Å"Income Inequality and Poverty in Iran.† Children of Heaven, (Tehran, Iran. 1997). Susman, â€Å"Income Inequality and Poverty in Iran.† Raghfar, â€Å"The Roots of Iran’s Inflation† Susman, â€Å"Income Inequality and Poverty in Iran.† The Jar, (Hormozgan, Iran. 1995). Children of Heaven, (Tehran, Iran. 1997). Raghfar, â€Å"The Roots of Iran’s Inflation† Raghfar, â€Å"The Roots of Iran’s Inflation† United States Government Accountability Office, â€Å"US and International Sanctions Have Adversely Affected the Iranian Economy†