In this article, we will look at the 20 most egalitarian countries in the world. We have also discussed egalitarianism and how some companies are trying to help achieve that for many countries. If you want to skip our detailed analysis, head straight to the 5 Most Egalitarian Countries in the World. A perfectly egalitarian country is one where every child, regardless of their background, is born with the same chance to reach for the stars. Nobody is held back by being poor or treated unfairly in this perfect world.
While there are no perfectly equal countries in the world, some have come close. These countries have prioritized accessible education, healthcare, and social support. These societies recognize that while perfection may be elusive, the relentless pursuit of equality guides the path toward a fairer and more compassionate world. On the other hand, the least egalitarian countries in the world often suffer from huge wealth disparities, limited access to education and healthcare, and systemic discrimination.
In the United States, income and wealth inequality have been a pressing issue. The country has one of the highest levels of inequality among developed countries. A small percentage of the population holds a huge portion of the wealth, while a large portion struggles with economic hardship and limited access to essential services such as healthcare and education.
The Nordic countries, which are often regarded the most income-equal countries in the world, essentially follow the Nordic model. The model relies on some of the world's highest tax rates. In 2019, according to the OECD, Denmark, Norway, and Sweden collected approximately 46.3%, 39.9%, and 42.9% of their GDP in taxes. In contrast, the United States only raised 24.5% of its GDP through taxation in 2019.
Moreover, in 2018, Sweden had a top personal income tax rate of 57.3%, Denmark's was 55.8%, and Norway's was 46.6%, and these high rates apply to a broad range of income levels. In comparison, the US top tax bracket in 2018 was 37%, affecting only individuals earning $500,000 or more (or $600,000 for married couples filing jointly). It is also worth mentioning that while it is true that the GDP growth for the US was 5.9% and for Denmark (one of the highest taxed countries) was 4.9% in 2021, there is no evidence to support that countries' higher income equality will translate into economies with slower economic growth.
Hence, discussing how large and small businesses wield considerable influence in the journey towards a more equitable world is pertinent. This influence is not limited to their immediate economic activities but extends to their approach to employment, investment, and societal engagement.
One such business is the cloud-based company, Salesforce Inc (NYSE:CRM), which has dedicated its finances and efforts to social responsibility through measurable initiatives and achievements. Salesforce Inc (NYSE:CRM) has made incredible progress in promoting workplace diversity and inclusion. They have exceeded their goal of having 50% of US employees come from underrepresented groups and reached this milestone a year early. They have also doubled Black leaders' representation and aim to increase Black, Indigenous, Latinx, and Multiracial leadership by 50% by the end of 2023. Moreover, they aspire to achieve 40% global female-identifying and non-binary employee representation by 2026.
In addition to its workforce initiatives, Salesforce Inc (NYSE:CRM) invests in education, advocacy for equal rights, and supplier diversity. They've invested millions in public schools in the US and globally and supported police and criminal justice reforms.
Besides being at the forefront of corporate social responsibility, Salesforce Inc (NYSE:CRM) has been equally impressive in its financial performance. Salesforce (NYSE:CRM) has reported excellent financial results for its second quarter of fiscal 2024, which ended on July 31, 2023. The company achieved a second-quarter revenue of $8.60 billion, with an 11% year-over-year increase and consistent performance in constant currency. Their operating margin stood at 31.6%. Salesforce also demonstrated strong earnings per share (EPS) with $2.12 in diluted EPS for the second quarter. Furthermore, this quarter, the company returned $1.9 billion to its stockholders through stock buyback.
On the other hand, Accenture Plc (NYSE:ACN) has also been actively engaged in social impact initiatives to help grow and prepare individuals for a more prosperous future. Their "Skills to Succeed" program has been a standout achievement that has equipped over 3 million people with job skills by 2020.
On June 15, 2023, Accenture Plc (NYSE:ACN) announced its investment in Praxis Labs, a New York-based software-as-a-service virtual reality (VR) company focused on diversity and inclusion training. The investment, led by Accenture Ventures, is part of its Project Spotlight initiative and was funded through the Black Founders Development Program.
This program aims to support Black entrepreneurs, who often face disparities in funding, with direct access to venture capital and corporate mentorship. Praxis Labs utilizes immersive learning to enhance workplace equity and inclusion while providing learners flexible access to their platform. Accenture Plc (NYSE:ACN)’s investment in the company is an evidence to its willingness to reduce wealth disparities for Black founders in the technology startup sector.
20 Most Egalitarian Countries in the World
A student in a classroom eagerly raising their hand, highlighting the quality of the company's test preparation services. Editorial photo for a financial news article. 8k. --ar 16:9
Here is a list of the most egalitarian countries in the world
20. Slovenia
Average Rank: 22
Slovenia saw stable, low-income inequality from its 1991 independence until the 2008 economic crisis. It ranked as the most equal OECD country in the late 2000s with a Gini coefficient of 0.24. It is also one of the countries with the best education.
19. South Korea
Average Rank: 21South Korea ranked 5th in global income equality in 2019, but economic inequality has grown. While it performs well in OECD comparisons, income polarization has worsened since the 2010 IMF stimulus.
18. Japan
Average Rank: 20.33
In 2023, Japan is 13th globally for quality of life, 3rd in healthcare and 6th for safety. It enjoys one of the world's highest life expectancies, 84 years, on par with Switzerland and Liechtenstein. Japan is also one of the top countries for engineering.
17. Spain
Average Rank: 17
Spain has been promoting female representation in politics and management positions. Almost 50% of political representation is female.
16. Belgium
Average Rank: 13
Belgium has a higher-than-average net-adjusted disposable income per capita at $34,884 annually. Employment is 65% for ages 15-64, with 68% men and 61% women in paid work.It is one of the most egalitarian countries in the world.
15. Luxembourg
Average Rank: 12
Life expectancy in Luxembourg is 83 years, which is 2 years higher than the OECD average. Their air quality is better, with high water quality satisfaction.
14. Austria
Average Rank: 11.85
Austria is ranked as the second most liveable country after Finland. It offers its residents an excellent quality of life with a pristine environment, clean air, top-tier healthcare, and extensive educational options. Austria is one of the best countries for women.
13. United Kingdom
Average Rank: 11.75
In 2022, the UK government responded to the living standards crisis with huge support, providing £58 billion ($71.2 billion) to help households cope with high inflation. Employers in the UK reacted to the tight labor market by increasing nominal pay at its fastest rate since 1991. Low-income households received massive support, with benefits uprated by 10.1% in April 2023, positively impacting their income. It is one of the most egalitarian countries in the world.
12. Canada
Average Rank: 11.60
Canada is one of the countries with the highest quality of life, with a 3.24-year higher life expectancy than the US. It excels in income, jobs, education, health, environment, social sectors, per the OECD's Better Life Index. Canada's universal healthcare is funded through taxes, which provides free healthcare services.
11. New Zealand
Average Rank: 11.50
New Zealand will mandate over 900 companies with 250+ employees to disclose their gender pay disparities to promote workplace equity. This requirement may later expand to cover around 2,700 businesses employing over 100 workers. New Zealand is one of the countries with the most income-equality.
10. Ireland
Average Rank: 10.25Ireland is promoting equality by considering decriminalizing sex work to protect the rights and safety of sex workers. This effort is an evidence that Ireland is concerned about sex worker rights and will, hence, consult advocates to address the negative impacts of existing legislation.
9. Germany
Average Rank: 10
Germany has improved its gender equality ranking, moving from 10th place in 2022 to 6th in 2023, according to the World Economic Forum. Progress in political empowerment was noted, but economic opportunity lagged due to a high gender wage gap and limited female representation in management positions. Germany outperformed the UK, Canada, and the US in this ranking. It is one of the most egalitarian countries in the world.
8. Australia
Average Rank: 9In Australia, Accenture Plc (NYSE:ACN)’s investment in education has extended to their partnerships with organizations like AIME and the Alannah & Madeline Foundation, where they support students in building the most in-demand skills and digital confidence.
7. Iceland
Average Rank: 7.25
Iceland is renowned for its gender equality as it has topped the World Economic Forum's gender equality report for over a decade. With nearly half of its parliament seats held by women in 2021, Iceland's democratic and social model earns its reputation as a paradise for gender equality. Iceland is one of the most gender-equal countries in the world.
6. Netherlands
Average Rank: 6.75
Dutch teenagers consistently rank high in life satisfaction, with strong social support, egalitarian environments at home and school, and flexible educational systems. The country's low unemployment, economic stability, and optimistic society also play a role. Teenagers tend to have minimal pressure to conform and greater freedom for self-discovery. The Netherlands is one of the most equal countries in the world. Click here to see the 5 Most Egalitarian Countries in the World.
