Haddad, Cameron NadimMahler, Daniel GerszonDiaz-Bonilla, CarolinaHill, RuthLakner, ChristophLara Ibarra, Gabriel2024-06-112024-06-112024-06-11https://hdl.handle.net/10986/41687The World Bank recently introduced a new key indicator to guide its work: the number of countries with high inequality, defined as a Gini index above 40. The new indicator was introduced as part of the new World Bank vision of ending poverty on a livable planet. This paper reviews why reducing inequality matters for ending poverty on a livable planet, summarizes the advantages and disadvantages of using the Gini index to track inequality, outlines challenges in measuring inequality, and discusses what a Gini threshold of 40 implies. Using the most recent data for every country, 52 countries of a total of 169 countries are classified as high inequality countries, which represents a decline from 74 countries at the beginning of the millennium.en-USCC BY 3.0 IGOINEQUALITYGINI COEFFICIENTNO POVERTYSDG 1REDUCED INEQUALITIESSDG 10WELFARE MEASUREMENTWorking PaperWorld Bank10.1596/41687