Relevance: GS-2 (Social Justice), GS-3 (Human Development) | Source: World Inequality Report, UNESCO

News 

The World Inequality Report 2026 shows rising global income and wealth gaps, highlighting how unequal public spending on education reinforces long-term inequality.

What the Data Shows

  • The top ten percent own seventy-five percent of global wealth; the bottom fifty percent own two percent.
  • Public education spending per school-age child varies sharply:
    • North America & Oceania: over nine thousand euros
    • South & Southeast Asia: around one thousand six hundred euros
    • Sub-Saharan Africa: about two hundred euros

This reflects a forty-fold gap in educational investment.

How Public Education Shapes Inequality

  • Education builds human capital, enabling mobility across income groups.
  • Underfunded public schooling leads to:
    • Poor learning levels
    • Weak teacher availability
    • Unequal access for disadvantaged groups
  • High-income regions invest heavily, creating a skilled, productive workforce.
  • Low-income regions fall into a cycle of low state capacity → low investment → persistent inequality.

Significance

Quality public education is the most effective equaliser, essential for achieving the Sustainable Development Goals.

UPSC Value Box

Human Capital Formation: The process of improving people’s skills, health, and education to increase productivity.

UNESCO Education for All & Sustainable Development Goal 4 – promotes inclusive, equitable, quality education for all.

Q. Consider the following statements regarding inequality and public education:

  1. Low public spending on education tends to reinforce intergenerational inequality.
  2. According to global data, spending per school-age child in South Asia is more than that in Latin America.
  3. Higher public investment in education directly correlates with higher labour productivity.

How many of the above statements are correct?
A. One only
B. Two only
C. All three
D. None

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