Wealth: Having It All and Wanting More
OXFAM ISSUE BRIEFING – JANUARY 2015
Deborah Hardoon, Senior Researcher, Oxfam GB
Post date: 19 January 2015 :: 12 pages
Global wealth is increasingly concentrated in the hands of a small wealthy elite. These wealthy individuals have generated and sustained their vast riches through their interests and activities in a few important economic sectors, including finance and insurance and pharmaceuticals and healthcare.
Companies from these sectors spend millions of dollars every year on lobbying to create a policy environment that protects and enhances their interests further. The most prolific lobbying activities in the US are on budget and tax issues; public resources that should be directed to benefit the whole population, rather than reflect the interests of powerful lobbyists.
This briefing explains Oxfam’s methodology and data sources and updates key inequality statistics, such as Oxfam’s frequently cited fact in 2014: ’85 billionaires have the same wealth as the bottom half of the world’s population.’
[Report Press Release Excerpt]
The combined wealth of the richest 1 percent will overtake that of the other 99 percent of people next year unless the current trend of rising inequality is checked, Oxfam warned today ahead of the annual World Economic Forum meeting in Davos.
Wealth: Having It All and Wanting More, a research paper published today by Oxfam, shows that the richest 1 percent have seen their share of global wealth increase from 44 percent in 2009 to 48 percent in 2014 and at this rate will be more than 50 percent in 2016. Members of this global elite had an average wealth of $2.7 million per adult in 2014.
Of the remaining 52 percent of global wealth, almost all (46 percent) is owned by the rest of the richest fifth of the world’s population. The other 80 percent share just 5.5 percent and had an average wealth of $3,851 per adult – that’s 1/700th of the average wealth of the 1 percent.
Winnie Byanyima, Executive Director of Oxfam International, said: “Do we really want to live in a world where the one percent own more than the rest of us combined? The scale of global inequality is quite simply staggering and despite the issues shooting up the global agenda, the gap between the richest and the rest is widening fast.
“In the past 12 months we have seen world leaders from President Obama to Christine Lagarde talk more about tackling extreme inequality but we are still waiting for many of them to walk the walk. It is time our leaders took on the powerful vested interests that stand in the way of a fairer and more prosperous world.
“Business as usual for the elite isn’t a cost free option – failure to tackle inequality will set the fight against poverty back decades. The poor are hurt twice by rising inequality – they get a smaller share of the economic pie and because extreme inequality hurts growth, there is less pie to be shared around.”…
[Concluding section of report]
5 RISING INEQUALITY IS NOT INEVITABLE
In October 2014 Oxfam launched its Even It Up campaign, calling for governments, institutions and corporations to tackle extreme inequality. This briefing provides further evidence that we must build a fairer economic and political system that values every citizen. Oxfam is calling on world leaders, including those gathered at the 2015 World Economic Forum Annual Meeting in Davos, to address the factors that have led to today’s inequality explosion and to implement policies that redistribute money and power from the few to the many.
1 Make governments work for citizens and tackle extreme inequality
Specific commitments must include: agreement of a post-2015 goal to eradicate extreme inequality by 2030; national inequality commissions; public disclosure of lobbying activities; freedom of expression and a free press.
2 Promote women’s economic equality and women’s rights
Specific commitments must include: compensation for unpaid care; an end to the gender pay gap; equal inheritance and land rights for women; data collection to assess how women and girls are affected by economic policy.
3 Pay workers a living wage and close the gap with skyrocketing executive reward
Specific commitments must include: increasing minimum wages towards living wages; moving towards a highest-to-median pay ratio of 20:1; transparency on pay ratios; protection of worker’s rights to unionise and strike.
4 Share the tax burden fairly to level the playing field
Specific commitments must include: shifting the tax burden away from labour and consumption and towards wealth, capital and income from these assets; transparency on tax incentives; national wealth taxes and exploration of a global wealth tax.
5 Close international tax loopholes and fill holes in tax governance
Specific commitments must include: a reform process where developing countries participate on an equal footing, and a new global governance body for tax matters; public country-by-country reporting; public registries of beneficial ownership; multilateral automatic exchange of tax information including with developing countries that can’t reciprocate; stopping the use of tax havens, including through a blacklist and sanctions; making companies pay based on their real economic activity.
6 Achieve universal free public services by 2020
Specific commitments must include: removal of user fees; meeting spending commitments; stopping new and reviewing existing public subsidies for health and education provision by private for-profit companies; excluding public services and medicines from trade and investment agreements.
7 Change the global system for research and development (R&D) and pricing of medicines so that everyone has access to appropriate and affordable medicines
Specific commitments must include: a new global R&D treaty; increased investment in medicines, including in affordable generics; excluding intellectual property rules from trade agreements.
8 Implement a universal social protection floor
Specific commitments must include: universal child and elderly care services; basic income security through universal child benefits, unemployment benefits and pensions.
9 Target development finance at reducing inequality and poverty, and strengthening the compact between citizens and their government
Specific commitments must include: increased investment from donors in free public services and domestic resources mobilization; and assessing the effectiveness of programmes in terms of how they support citizens to challenge inequality and promote democratic participation.