The global gap between rich and poor

80 percentof the entireworld’s wealthisheld byonlya quarter of theglobalpopulation, according to a study from the UNDP.Thus the gap between rich and poorisgrowing wider. The unequaldistribution ofincomeand wealthin developing countriesisthehigher than in developed countries, but as well in the rich industrializedcountries themiddle classis shrinking.The gapbetween richand poorin the developingcountries is directlyvisible. Theremanypeople live in absolutepoverty that is lessthan$ 1.25perday per person. It is about survival. In developedcountries thepovertyhasa different face, but most areas well affectedby this development.

In thepastdecade, the income gap isnotonly inveryunequalcountries such asIsrael orthe United Statescontinued to open, butas wellin countrieswith traditionallysmall differences. These include for exampleGermany, Denmark, SwedenandotherNordiccountries. The top tenthof the German population earnseight timesas much as thebottom.One reason for this is that the lower income in the last years just slightly increased. Many people in both poor and rich countries can´t live of their incomes. The cost of living continues to rise, while there is astagnation of wages and salaries. At the same time the social sector was seriously affected by the financial and economic crisis. In this sector many savings was made.

More money for education or sociallydisadvantaged could help to reduce the poverty. For example,the income gapis offsetby aprogressive incometax schedule.Who earns morewill paymoretaxes.There are already good concepts in a few countries like the “Bolsa Família” in Brasil, which helps direct disadvantaged people.

Such social programs are just exceptions. The best solution is education. Manychildren in developingcountriesneed to leave theprimary early, because they need to help the families in the agriculture. So there is just a little chance to go to a High school or even the University. Even in developed countries is the access to education often not fair. Children from the upper classes in Germany have a three times higher chance to goto High school (Gymnasium) than children from working class families or from families with a migration background. At German universities are only about six percent of students from a non-academic or socially disadvantaged home.

Just thebasic servicesand education can counteract the increasingincomeinequalityin the world.As long as thesharing ofhealth and educationsystemsisnotsimpleand fair, the gapbetweenrich and poorare increasing, warnstheOECD.,,15688312,00.html


Labour market developments in Europe 2011

Employment in most EU countries proved considerably resilient immediately after the 2008.Recession. In 2010 in the most European countries were growth, but the employment was way behind. In the End of 2010 in a lot of EU-countries the working hours per worker were back to pre-crisis levels. And as well the headcount employment started growing again, but often the contracts were temporary. Nonetheless, the employment recovery is not expected to be as strong to bring about a significant reduction in the unemployment rate over the next middle long term. The speed at which unemployment will go back to precrisislevels will depend not only on the growthoutlook but as well on the presence of supportivepolicy frameworks.

The unemployment rate kept a very high level in the most EU-States and Youth-unemployment rise to a record level.Unemployment disparities within the EU and the euro area have grown markedly and this will persist in the next years even harder. While the prospects appear relatively rosy in theBaltics,unemployment is expected to grow in the future inSpain, Ireland, Greece and Portugal in 2011. The unemployment rate of Germany, at the record levelof 7.1% in 2010, a value not reached since theearly 1990s, is expected to further fall in 2011 and2012.Wage moderation has prevailed during the recovery, with a reduction in the growth of nominal wages compared with previous years, and with real wages growing below productivity.Nominal wage growth remained muted in 2010in the Eurozone. The wage trend started in 2009 is consistent withthe priority of reducing unemployment, but it isonly since 2010 that real wage adjustment becameclearly stronger in countries with worseunemployment problems. The falling unit labour costs are compared in the most EU–countries with the surge in labour productivity.

The challenge is the fighting against the job insecurity. It seems that the labour marketmatching has been worsening in the euro area, as there is more unemployment for thesame number of vacancies. The fact that the long-term unemployment is risen a problem. The quality of new jobs created will also be a key toensure that the recovery coincides withreinvigorated income prospects, notably for the low skilled and the young.

Frankfurt Rhine-Main

Frankfurt is in the heart of Europe and one of the most important European metropolitan areas in Germany. Thru the location of the region in Europe it has a very good infrastructure like the international airport, which is good for companies and population. As well the attractive of this area is the high economic potential. The economy in this metropolitan area is focused internationally. It has high industry diversity with a lot of high technology companies, Universities and research institutes.

The region Rhine-Main includes Aschaffenburg, Darmstadt, Frankfurt on the Main, Fulda, Gießen-Friedberg, Hanau-Gelnhausen-Schlüchtern, Limburg, Rheinhessen, Offenbach on the Main and Wiesbaden. By an area of 14.755 square kilometers are over 5.5 million people located. This gives a density of 375 inhabitants per square kilometers. In the metropolitan area with the seven main cities live 1.537 inhabitants per square kilometers.

The region has with 179 million gross values added 8.4 percent of the German economy. In the sector service it is 9.1 percent. And this gets generate in an area of 4.1 percent of Germany and 6.8 percent of the population.

In the Rhine-main region are two million persons with work. In the tertiary sector (trade, hotels and restaurants, transport, storage and communication andother services) works in the area 1.5 million persons. This corresponds toa share of over75 percentof allemployees.

Sozialversicherungspflichtig Beschäftigte


Wirtschaftsbereich                         30.06.2007     30.06.2008     30.06.2009* 30.06.2010

Verarbeitendes Gewerbe                             385.954     387.57     3 356.006 346.747

Dienstleistungen für Unternehmen               350.498     371.291     314.598    331.004

Handel                                                     295.346     298.474    301.961    297.671

Verkehr und Telekom                                 160.560     164.973     233.591     231.631

Kredit + Versicherungen                              135.475     134.075    138.823    137.223

Baugewerbe                                              91.256      91.189     95.782     96.671

Gastgewerbe                                            58.116      59.036     62.234      62.747

Bergbau, Energie- und Wasserwirtschaft       18.038      20.971     29.633     30.260

Land- und Forstwirtschaft, Fischerei            13.890     14.129      7.387       7.771

Öffentl. Verwaltung, sonst.                         461.152     463.504     465.719    479.404

öffentl. u. persönl. Dienstleistungen

Sonstige                                                   –               –              2.767       2.100

Beschäftigte insgesamt                            1.970.285  2.005.215                 2.008.501  2.023.229


2011 wasa good yearfor companiesin the MetropolitanRegionFrankfurtRhineMain.Sales haverisen thisyear,the order booksare full,and employmentis rising. But the crisis in Europe and the uncertain outlook for the global economy dim the prospects for growth in 2012. Nevertheless it is still expected, that there are additional jobs emerge in the region. It is currentlyexpectinganeconomygrowthof 3percentin2011 andaround 1.1percentin 2012. According to the calculations therewill be in 2011about 2.5percent orabout 50,000new jobscreated. In the coming year the expectations are not as good as before, but still around 1 percent or 20.000 new jobs created. So in the End of 2012 will be more than2.1 million people employed in this region. This is the highest employment level in 20 years.

The forecast is under subject.

Immigration to Germany in 2011

In the last year in Germany the number of people with a foreign nationality has risen up to a level to 6.93 million people in the End of 2011. This is the strongest increase since the last fifteen years according to the statistic office of Germany.That is about 180.000 immigrants more than the year before.

The biggest amount of the people comes from European Union countries, just one-eighth ofimmigrations coming from non-European states. Especially the number of immigrant from the middle- and east-European states has risen. The reason for this change is the open and unlimited labour market in Germany. Since the first of May 2011 the citizens of eight countries (Estonia, Latvia, Lithuania, Poland, Slovakia, the Czech Republic and Hungary) form the East are allow to work in Germany, for them the borders are open. With the EU enlargement in 2004 there was the opportunity for the fifteen old European states to open their market or wait seven years longer. Great Britain, Ireland and Sweden open the labour market directly. The other states wait longer. Germany and Austria took the whole period until the end. They were afraid of wage dumping.

For Romania and Bulgaria the borders are still not open. They join the European Union not in 2004 instead in 2007. So the seven year period to open the labour market ends in 2013. Germany can open their market earlier if they want to. But they are again afraid of workers, who would work for less money than the German workers would do.

The discussion by this topic is about, when is the right moment to open the labour market. On one side Germany needs more labourer especially qualified one, but as well for example in the nursing and care service. On the other hand if a lot worker comes, they maybe take the jobs from a German person. A few politicians have the opinion it is good to open the labour market that late, so Germany can build up same structure to prevent wage-dumping. Other politicians were more for the option to open the labour market earlier, which is now too late. But in their few the good and willing workers already left for example to Sweden, a state which open directly the labour market and welcome them.

In the last year the amount of the Turkish citizens in Germany continue to decline. It was around 22.000 numbers of people less in contrast to the year before.

As well the economy crises don´t stop for migration. In consequent people from the countries, which the crises hit hard, come to Germany. So round 17.000 people from Greece, Italy, Portugal and Spain immigrate the last year.

From non-EU countries were a relative small number of immigrants. The growth of just 0.5 percent is mainly due to people from the USA, Croatia, Afghanistan and China.