A new report from Oxfam says that eight richest men in the world own the same wealth as the poorest 3.6 billion people. The report was published by Oxfam to mark the World Economic Forum annual meeting of political and business leaders in Davos taking place from today, the 17th of January to the 20th of January.
Oxfam’s report, ‘An economy for the 99 percent’, shows that the gap between rich and poor is far greater than had been feared. It details how big business and the super-rich are fuelling the inequality crisis by dodging taxes, driving down wages and using their power to influence politics. It calls for a fundamental change in the way we manage our economies so that they work for all people, and not just a fortunate few.
Together, the world’s 8 richest men own $426.2 billion. These include men like Microsoft founder Bill Gates, Amazon founder Jeff Bezos, Facebook co-founder Mark Zuckerberg and Oracle co-founder Larry Ellison.
Shocking: 8 richest men have the same wealth as the poorest 3.6bn people. YOU can change this #inequality: https://t.co/gfpjDxRXzA #EvenItUp pic.twitter.com/8lkX3wCxvj
— Oxfam International (@Oxfam) January 16, 2017
According to Winnie Byanyima, Executive Director of Oxfam International,
“It is obscene for so much wealth to be held in the hands of so few when 1 in 10 people survive on less than $2 a day. Inequality is trapping hundreds of millions in poverty; it is fracturing our societies and undermining democracy.
“Across the world, people are being left behind. Their wages are stagnating yet corporate bosses take home million dollar bonuses; their health and education services are cut while corporations and the super-rich dodge their taxes; their voices are ignored as governments sing to the tune of big business and a wealthy elite.”
Oxfam’s report shows how our broken economies are funnelling wealth to a rich elite at the expense of the poorest in society, the majority of whom are women. The richest are accumulating wealth at such an astonishing rate that the world could see its first trillionaire in just 25 years. To put this figure in perspective – you would need to spend $1 million every day for 2738 years to spend $1 trillion.
‘An Economy for the 99 percent’ also reveals how big business and the super-rich are fuelling the inequality crisis. It shows how, in order to maximize returns to their wealthy shareholders, big corporations are dodging taxes, driving down wages for their workers and the prices paid to producers, and investing less in their business.
It also demonstrates how big business and the super-rich use their money and connections to ensure government policy works for them. For example, billionaires in Brazil have sought to influence elections and successfully lobbied for a reduction in tax bills while oil corporations in Nigeria have managed to secure generous tax breaks.
Oxfam’s blueprint for a more human economy includes:
Governments end the extreme concentration of wealth to end poverty. Governments should increase taxes on both wealth and high incomes to ensure a more level playing field, and to generate funds needed to invest in healthcare, education and job creation.
Governments cooperate rather than just compete. Governments should work together to ensure workers are paid a decent wage, and to put a stop to tax dodging and the race to the bottom on corporate tax.
Governments support companies that benefit their workers and society rather than just their shareholders. The multi-billion Euro company Mondragon, is owned by its 74,000 strong workforce. All employees receive a decent wage because its pay structure ensures that the highest paid member of staff earns no more than 9 times the amount of the lowest paid.
Governments ensure economies work for women. They must help to dismantle the barriers to women’s economic progress such as access to education and the unfair burden of unpaid care work.
Oxfam is also calling on business leaders to play their part in building a human economy. The World Economic Forum has responsive and responsible leadership as its key theme this year. They can make a start by committing to pay their fair share of tax and by ensuring their businesses pay a living wage. People around the global can also join the campaign at www.evenitup.org.
Oxfam is an international confederation of charitable organizations focused on the alleviation of global poverty.
