Car armourers find plenty of customers inMexico, too. So how, I wonder, will the Internet affect thedistribution of wealth on this planet? The Net, after all, issupposed to be a great leveller, giving everyone, in theory, an equalvoice. I have yet to visit Brazil, but I have been to Mexicoon several occasions. Mexico City writhes with a palpable tension thatI've experienced in few other places. Heavily armed guards stand outsideof banks, stores and the residences of the rich. Crime has risen sharplyin Mexico City in recent years, and some Mexican states have districts thatare on the verge of revolution. The UK figureswere respectively 39.8 per cent and 7.1 per cent, while the USnumbers were 45.2 per cent and 4.8 per cent. That a deep gulfbetween rich and poor often leads to social strife was perhaps well illustratedby the subject of the accompanying article - the great success being reapedin Brazil by companies that fit out cars with armour plating. Anothercountry on the list, Mexico, has a wealthiest quintile that controls morethan 58 per cent of its wealth, with only 3.6 per cent in the hands ofthe poorest fifth.

In Brazil, itfound that the richest quintile command over 64 per cent of the nation'swealth, versus a mere 2.5 per cent for the poorest. It ranked six countries according to the distribution of income. Ofthe six, Britain was ranked most equitable, Brazil the least and theUnited States came about halfway in between. The chart's numbers camefrom the World Bank and the United Nations, and compared how the richestfifth of the population compared with the poorest fifth. The report thinks the danger will probably be avoided, but even so sees no scope for a reduction in interest rates from 5 per cent.. ANINTERESTING chart jumped out at me from the pages of the New York Times the otherday. It ranked six countries according to the distribution of income. Ofthe six, Britain was ranked most equitable, Brazil the least and theUnited States came about halfway in between.

ANINTERESTING chart jumped out at me from the pages of the New York Times the otherday. Wage settlements are slowing and we can be relatively relaxed on the inflation front."Some economists predict the MPC will face an increasingly severe dilemma as the year goes on, with underlying inflation heading for the bottom of its target range at the same time that stronger growth will be fuelling future inflationary pressures.The influential National Institute for Economic and Social Research predicted last week that, with growth picking up to 2.5 per cent in 2000, the target inflation rate would be heading past 3.1 per cent, the top of the range, by the end of the year.This week's purchasing managers' surveys on manufacturing and services and the CBI's monthly survey of high street sales are expected to show fresh signs of recovery across the board, confirming other evidence that the economy is once again picking up momentum.A report published at the weekend warned of a "real risk that with fears of recession and property collapse removed, the housing market could overheat." The warning from Ernst & Young's Item Club, based on the Treasury's own economic model, comes in the wake of many signs that house price inflation is accelerating. There is welcome underlying growth in the economy, but it is not all that strong." And Graeme Leach, chief economist at the Institute of Directors, said: "There is a real possibility of a further rate cut, although we do not consider it essential. It argues that inflation pressures are weak and the strong pound is still causing problems for manufacturers.Ian Peters, deputy director of the British Chambers of Commerce, said: "It is too soon to start thinking about raising interest rates. "Small firms are paying 8 to 9 per cent for their money, and another rate cut would put pressure on the banks to pass some of it on."The Confederation of British Industry also said the next move in rates should be downward. All of the employers' organisations contacted by The Independent said there was scope for rates to fall further.

But figures at the end of last week showing the economy expanding faster than anticipated led the financial markets to predict the cost of borrowing will have to rise to 5.25 per cent by September and again by the end of the year. Economists are also concerned about rising commodity prices, especially oil, and the risk the pound could fall suddenly, boosting import prices."Our members would welcome a further cut of half a point to 4.5 per cent, or even lower," said Stephen Alambritis of the Federation of Small Business. BUSINESS ORGANISATIONS are urging the Monetary Policy Committee to hold or even reduce interest rates after its meeting this week, even though City economists are warning it is only a matter of time before rates have to increase. Bang in the middle were the BBC, where most staff got 2.6 per cent, and Tesco, where employees got a 2.7 per cent rise.Even so, the average level has drifted lower over the course of this year despite the fact that the jobs market has continued to tighten This is particularly true in southern England. Unemployment rates have dropped to 2 per cent or lower in a number of thriving towns such as Cambridge, Crawley, Stevenage and Swindon.The report concludes: "Although inflation is very low, earnings are growing at an average of 2.8 per cent, well above the rate of increase in the cost of living."IDS Report, August 1999, pounds 30 Contact 0171-250 3434..