AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.
The variation in income inequality among democratic countries shows that democracy alone is not sufficient to reduce economic inequality.
Evidence from Table 2 supports this: in South Africa and Brazil (both democracies), the top 20% earn over 60% of national income, leaving less than 3% for the bottom 20%. In contrast, Denmark and Hungary show much smaller gaps.
This means economic outcomes depend on additional factors — government policies, social welfare programmes, and political will. Though democracy is based on political equality, it does not automatically guarantee economic equality. As the textbook notes, "in actual life, democracies do not appear to be very successful in reducing economic inequalities."
Source: Chapter 5 — Economic outcomes of democracy; Reduction of inequality and poverty
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