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===Relative, not absolute=== The Gini coefficient is a relative measure. The Gini coefficient of a developing country can rise (due to increasing inequality of income) even when the number of people in absolute poverty decreases.<ref>{{cite web|title=Dramatic Poverty Reduction in the Third World: Prospects and Needed Action|first=John W.|last=Mellor|publisher=International Food Policy Research Institute|date=2 June 1989|pages=18β20|url=http://pdf.usaid.gov/pdf_docs/PNABK503.pdf |archive-url=https://web.archive.org/web/20120803160551/http://pdf.usaid.gov/pdf_docs/PNABK503.pdf |archive-date=2012-08-03 |url-status=dead}}</ref> This is because the Gini coefficient measures relative, not absolute, wealth. Gini coefficients are simple, and this simplicity can lead to oversights and can confuse the comparison of different populations; for example, while both Bangladesh (per capita income of $1,693) and the Netherlands (per capita income of $42,183) had an income Gini coefficient of 0.31 in 2010,<ref name=undp2010a>{{cite web|title=The Real Wealth of Nations: Pathways to Human Development (2010 Human Development Report β see Stat Tables)|pages=152β156|publisher=United Nations Development Program|year=2011|url=http://hdr.undp.org/en/reports/global/hdr2010/chapters/}}</ref> the quality of life, economic opportunity and absolute income in these countries are very different, i.e. countries may have identical Gini coefficients, but differ greatly in wealth. Basic necessities may be available to all in a developed economy, while in an undeveloped economy with the same Gini coefficient, basic necessities may be unavailable to most or unequally available due to lower absolute wealth.
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