This chapter aims to establish the relationship between inequality and poverty to explain why poverty persists. For this purpose, four parts are developed. The first one illustrates data on inequality and poverty in the world. In the second one, the background of both problems is traced in order to conceptualize them and determine their relationship. In the third one, a simulation exercise is carried out to show the mentioned relationship; besides, correlations between corruption, inequality, and poverty are made for 18 countries around the world that bear witness to the link between these variables. Finally, it is pointed out that persistent poverty reduction will only succeed if the different types of inequalities are reduced or limited, since it is unacceptable that more than 10% of the inhabitants of the earth live in extreme poverty or that just eight people have the same wealth as half of mankind.
Part of the book: Poverty, Inequality and Policy