Basics on Social Democracy 30 The Gini coefficient has been developed by the Italian Corrado Gini in 1912. It is a measuring instrument for the inequality of distribution of wealth. The minimum 0 means the wealth is completely equal distributed. 1 means the whole wealth belongs to one person. The best performing country is Denmark with 24,7%, while Namibia ranges on the bottom with 70,7%. Not every country has been assessed. Box 3: Gini coefficient Social Democratic Approaches in Developing Countries Social democratic systems are primarily a phenomenon of economically developed countries. In the 60s and 70s, many development countries experimented with social policies, but this happened mostly in the context of socialism and under the influence of the USSR. Some of the policies instituted by developing countries during this period were similar to those instituted in social democratic systems, but they lacked democratic control and often ended in political structures that did not benefit the majority but only a few. After several economic crises and in the face of pressure from their international donors, most developing countries turned away from their earlier socialist ideas and policies in the 80s and liberalized their markets. At least in respect of Sub-Saharan African countries one can say that the structural adjustment of the 80s has not succeeded in creating competitive economies. This does not necessarily show that the institution of another state-market relation would have led to different results. However, it does nevertheless hint that alternatives should at least be considered. As elaborated in the chapter“state-market”, all social policies have to be affordable, but the affordability of, for example, a welfare system does not only depend on the state's budget, but also on the costs of such a system – which are far lower in all low-wage/development countries. Indeed the populations of less-developed countries are often in great need of assistance of the kind which some form of welfare system might provide. Most of these countries are currently being shaped by rapid industrialization and urbanization. In these conditions workers have to move around to find jobs and are therefore required to leave their traditional environments. Consequently the traditional social security system(family, tribes, neighbors) disappears, and in the case of illness, unemployment or age, workers are extremely vulnerable. It is the workers of developing states who are in need of protection, however, but also some industrial branches of the economy. It might, for example, be necessary to shelter some industries until they become internationally competitive. These arguments do not mean that a full social democratic system with a complete welfare state is the perfect model for all development countries. The institution of at least parts of it can lead to a more just society, however, while simultaneously contributing to positive economic development. In the last decade, the populations of many South-American countries have voted for parties with at least social democratic agendas(governments in: Argentina, Bolivia, Brazil, Chile, Ecuador, Nicaragua, Uruguay, Venezuela, 1 In Free Trade Zones, goods are allowed to be imported, processed and reexported without the intervention of the customs authorities. It is a mean to attract foreign investments, especially in development countries.