World’s billionaires have more wealth than 4.6 billion people
by Oxfam International, agencies
The world’s 2,153 billionaires have more wealth than the 4.6 billion people who make up 60 percent of the planet’s population, reveals a new report from Oxfam.
Global inequality is shockingly entrenched and vast and the number of billionaires has doubled in the last decade. Oxfam India CEO Amitabh Behar, who is in Davos to represent the Oxfam confederation this year said: “The gap between rich and poor can''t be resolved without deliberate inequality-busting policies, and too few governments are committed to these.”
Oxfam’s report, ‘Time to Care’, shows how our sexist economies are fuelling the inequality crisis — enabling a wealthy elite to accumulate vast fortunes at the expense of ordinary people and particularly poor women and girls:
The 22 richest men in the world have more wealth than all the women in Africa. Women and girls put in 12.5 billion hours of unpaid care work each and every day — a contribution to the global economy of at least $10.8 trillion a year, more than three times the size of the global tech industry.
Getting the richest one percent to pay just 0.5 percent extra tax on their wealth over the next 10 years would equal the investment needed to create 117 million jobs in sectors such as elderly and childcare, education and health.
“Our broken economies are lining the pockets of billionaires and big business at the expense of ordinary men and women. No wonder people are starting to question whether billionaires should even exist,” Behar said.
“Women and girls are among those who benefit least from today’s economic system. They spend billions of hours cooking, cleaning and caring for children and the elderly. Unpaid care work is the ‘hidden engine’ that keeps the wheels of our economies, businesses and societies moving. It is driven by women who often have little time to get an education, earn a decent living or have a say in how our societies are run, and who are therefore trapped at the bottom of the economy,” added Behar.
Women do more than three-quarters of all unpaid care work. They often have to work reduced hours or drop out of the workforce because of their care workload. Across the globe, 42 percent of women of working age cannot get jobs because they are responsible for all the caregiving, compared to just six percent of men.
Women also make up two-thirds of the paid ‘care workforce’. Jobs such as nursery workers, domestic workers, and care assistants are often poorly paid, provide scant benefits, impose irregular hours, and can take a physical and emotional toll.
The pressure on carers, both unpaid and paid, is set to grow in the coming decade as the global population grows and age. An estimated 2.3 billion people will be in need of care by 2030 — an increase of 200 million since 2015.
Climate change will worsen the looming global care crisis — by 2025, up to 2.4 billion people will live in areas without enough water, and women and girls will have to walk even longer distances to fetch it.
The report shows governments are massively under-taxing the wealthiest individuals and corporations and failing to collect revenues that could help lift the responsibility of care from women and tackle poverty and inequality.
At the same time, governments are underfunding vital public services and infrastructure that could help reduce women and girls’ workload. For example, investments in water and sanitation, electricity, childcare, healthcare could free up women’s time and improve their quality of life.
For example, providing access to an improved water source could save women in parts of Zimbabwe up to four hours of work a day, or two months a year.
“Governments created the inequality crisis —they must act now to end it. They must ensure corporations and wealthy individuals pay their fair share of tax and increase investment in public services and infrastructure. They must pass laws to tackle the huge amount of care work done by women and girls, and ensure that people who do some of the most important jobs in our society — caring for our parents, our children and the most vulnerable — are paid a living wage.
Governments must prioritize care as being as important as all other sectors in order to build more human economies that work for everyone, not just a fortunate few,” said Behar.
Fix the global tax system to fix the inequality crisis - Independent Commission for the Reform of International Corporate Taxation. (ICRICT)
The inequality crisis remains unaddressed and out of control. Hundreds of millions of people are living in extreme poverty while large rewards go to those at the very top. In 2019, the world’s billionaires, only 2,153 people, had more wealth than the poorest 4.6 billion people combined, according to Oxfam. A new generation of inequalities is opening up, around education, technology and climate change.
The demonstrations that swept across the world last year signal a global revolt against extreme inequality and the poor living standards for a large amount of the world’s population. Faced with popular demands, governments excuse themselves by arguing that their coffers are empty and implementing austerity program. These measures only aggravate economic, social, gender and racial disparities, depriving people of access to health care, education, or housing, especially in developing countries.
Inequality is not beyond solutions. One of the most obvious is to change the international corporate taxation system, which is not only obsolete, but also unfair, since it allows for systematic tax evasion and avoidance by multinationals. Corporate taxation is one of the most important tools in addressing inequality.
Tax evasion and avoidance by multinationals further increases income inequality, as corporate equity mostly belongs directly or indirectly (e.g. through investment funds) to wealthy individuals who receive profit income through dividends and capital gains.
Magdalena Sepúlveda, Executive Director of the Global Initiative for Economic, Social and Cultural Rights and ICRICT commissioner: “If multinationals - and the super-rich - do not pay their fair share of taxes, governments cannot invest in access to education, health care, and decent pensions, or take measures to mitigate and adapt to the climate crisis.
The impact is even greater for developing countries, as they rely more on corporate taxes. Furthermore, the tax burden is shifted to the poorest, usually through taxes regressive to consumption, such as value-added tax (VAT)”.
“It is incumbent on all of us to make a clear commitment to the issue of international taxation, no longer considering it as a technical issue to be discussed behind closed doors. We must work collectively to put the interests of the majority of citizens above the often-unreasonable profits of a small group of shareholders” http://bit.ly/37dQlgD
http://www.icrict.com/ http://www.taxjustice.net/topics/ http://www.globaltaxjustice.org/en
* UNRISD: Overcoming Inequalities; Elites influence over policy making: http://bit.ly/2RwtK8C
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2 billion people globally live on just 3 dollars a day
by Global Call to Action Against Poverty, agencies
Inequalities in Human Development in the 21st Century, by UN Development Programme (UNDP), agencies
The 2019 Human Development Report sets out how the unequal distribution of education, health and living standards limit countries’ progress. By these measures, 20 per cent of human development progress was lost through inequalities in 2018.
“This Human Development Report sets out how systemic inequalities are deeply damaging our society and why,” said Achim Steiner, the UNDP Administrator.
“Inequality is not just about how much someone earns compared to their neighbour. It is about the unequal distribution of wealth and power: the entrenched social and political norms that are bringing people onto the streets today, and the triggers that will do so in the future unless something changes. Recognizing the real face of inequality is a first step; what happens next is a choice that each leader must make.”
The report, “Beyond income, beyond averages, beyond today: inequalities in human development in the 21st Century”, looks at but also goes beyond simply measuring income disparities. Inequality begins even before birth and can accumulate, amplified by differences in health and education, into adulthood. Policies to address it, therefore, must include investing in young children’s learning, health and nutrition.
Countries with a more productive workforce tend to have a lower concentration of wealth at the top, for example, enabled by policies that support stronger unions, set the right minimum wage, create a path from the informal to the formal economy, invest in social protection, and attract women to the workplace.
Policies to enhance productivity alone are not enough, however. The growing market power of employers is linked to a declining income share for workers. Antitrust and other policies are key to address the imbalancesof market power.
Public spending and fair taxation: the report argues that taxation cannot be looked at on its own, but it should be part of a system of policies, including public spending on health, education, and alternatives to a carbon-intensive lifestyle.
More and more, domestic policies are framed by global corporate tax discussions, highlighting the importance of new principles for international taxation, to help ensure fair play, avoid a race to the bottom in corporate tax rates, especially as digitalization brings new forms of value to the economy, and to detect and deter tax evasion.
Averages often hide what is really going on in society, highlights the report, and while they can be helpful in telling a larger story, much more detailed information is needed to create policies to tackle inequality effectively. This is true in tackling the multiple dimensions of poverty, in meeting the needs of those being left furthest behind such as people with disabilities, and in promoting gender equality and empowerment.
Based on current trends, it will take 202 years to close the gender gap in economic opportunity alone, cites the report. While the silence on abuse is breaking, the glass ceiling for women to progress is not. Instead, it is a story of bias and backlash.
For example, at the very time when progress is meant to be accelerating to reach the Sustainable Development Goals (SDGs) by 2030, the report’s 2019 Gender Inequality Index says progress actually is slowing.
A new “social norms index” in the report says that in half of the countries assessed, gender bias has grown in recent years. About fifty per cent of people across 77 countries, said they thought men make better political leaders than women, while more than 40 per cent felt that men made better business executives.
Therefore, policies that address underlying biases, social norms and power structures are key. For example, policies to balance the distribution of care, particularly for children, are crucial, says the report, given that much of the difference in earning between men and women throughout their lifecycle is generated before the age of 40.
Looking beyond today, the report asks how inequality may change in future, looking particularly at two seismic shifts that will shape life up to the 22nd century.
The climate crisis: As a range of global protests demonstrate, policies crucial to tackling the climate crisis like putting a price on carbon can be mis-managed, increasing perceived and actual inequalities for the less well-off, who spend more of their income on energy-intensive goods and services than their richer neighbours.
If revenues from carbon pricing are ‘recycled’ to benefit taxpayers as part of a broader social policy package, the authors argue, then such policies could reduce rather than increase inequality.
Technological transformation: Technology, including in the form of renewables and energy efficiency, digital finance and digital health solutions, offers a glimpse of how the future of inequality may break from the past, if opportunities can be seized quickly and shared broadly.
There is historical precedent for technological revolutions to carve deep, persistent inequalities – the Industrial Revolution not only opened up the great divergence between industrialized countries and those who depended on primary commodities; it also launched production pathways that culminated in the climate crisis.
The change that is coming goes beyond climate, says the report, but a ‘new great divergence’, driven by artificial intelligence and digital technologies, is not inevitable.
The report recommends for example, investment in lifelong learning to help workers adjust or change to new occupations, and international consensus on how to tax digital activities – all part of building a new, secure and stable digital economy as a force for convergence, not divergence, in human development.
Thomas Piketty. Co-Director at the World Inequality Lab: “The UNDP Human development report offers a broad and innovative approach to inequality. It includes for the first time a transparency index regarding inequality statistics, covering different sources including administrative data. Even though everyone is concerned about inequality, not all governments are providing enough information about it. In fact, what this transparency index is showing is that we simply do not have enough data. We need relevant information for a meaningful debate.”
Laura Chinchilla, President of Costa Rica (2010-2014): “The report looks at inequality beyond income, beyond averages and beyond today. Beyond income because any assessment must consider money, but it must also go beyond to understand other inequalities, for instance in health and educations. Beyond averages, because they are not enough to capture the complexities of inequality. And beyond today because it is important to capture how inequalities will interact with the two major shift that will shape the 21th century: technological transformation and climate change.
http://report.hdr.undp.org/ http://hdr.undp.org/en/2019-report http://ophi.org.uk/global-multidimensional-poverty-index-2019-illuminating-inequalities/ http://bit.ly/3541TlK
Rising inequality affecting more than two-thirds of the globe. (UN News)
Inequality is growing for more than 70 per cent of the global population, exacerbating the risks of divisions and hampering economic and social development. But the rise is far from inevitable and can be tackled at a national and international level, says a flagship study released by the UN.
The World Social Report 2020, published by the UN Department of Economic and Social Affairs (DESA), shows that income inequality has increased in most developed countries, and some middle-income countries - including China.
The challenges are underscored by UN chief António Guterres in the foreword, in which he states that the world is confronting “the harsh realities of a deeply unequal global landscape”, in which economic woes, inequalities and job insecurity have led to mass protests in both developed and developing countries.
“Income disparities and a lack of opportunities”, he writes, “are creating a vicious cycle of inequality, frustration and discontent across generations.”
The study shows that the richest one per cent of the population are the big winners in the changing global economy, increasing their share of income between 1990 and 2015, while at the other end of the scale, the bottom 40 per cent earned less than a quarter of income in all countries surveyed.
In unequal societies, with wide disparities in areas such as health care and education, people are more likely to remain trapped in poverty, across several generations.
There are still stark differences between the richest and poorest countries and regions: the average income in North America, for example, is 16 times higher than that of people in Sub-Saharan Africa. Although cities drive economic growth, they are more unequal than rural areas, with the extremely wealthy living alongside the very poor. The scale of inequality varies widely from city to city, even within a single country: as they grow and develop, some cities have become more unequal whilst, in others, inequality has declined.
The report looks at the impact that four powerful global forces, or megatrends, are having on inequality around the world: technological innovation, climate change, urbanization and international migration.
The climate crisis is having a negative impact on quality of life, and vulnerable populations are bearing the brunt of environmental degradation and extreme weather events. Climate change, according to the World Social Report, is making the world’s poorest countries even poorer, and could reverse progress made in reducing inequality among countries.
Despite a clear widening of the gap between the haves and have-nots worldwide, the report points out that this situation can be reversed. Although the megatrends have the potential to continue divisions in society, they can also, as the Secretary-General says in his foreword, “be harnessed for a more equitable and sustainable world”. Both national governments and international organizations have a role to play in levelling the playing field and creating a fairer world for all. Reducing inequality should, says the report, play a central role in policy-making.
The International Day for the Eradication of Poverty, as every 17th October, calls us again to strengthen our commitment to change our world and enable millions of people to lead different lives.
Around 2 billion people globally live on just 3 dollars a day. Around 3.4 billion people live on 5.5 dollars a day. Almost half of the world population live every day in a condition that the majority of the citizens of the North would not be able to face. Half of the world’s population!
Can we just wait and see? Even if we renew this call every year, we’ll never be tired of repeating that we need a different effort. We need justice and we need it now.
Can we just place blame? No, we want policies! Policies to transform our world now: we want fair rules for trade, effective rules for financial markets, fiscal justice to finance redistribution, universal social protection, health and education, water and food for all, sustainable and decent work for all, in a world that cares to put human persons, their dignity and intelligence at the core, instead of greed, egoism and fear.
These are the proposals we raised in the People’s Assembly Declaration, when we met in September in New York, with a huge number of organizations and movements of civil society from all over the world.
Our call could be seen as naïve. We know that some powerful people are even ready to use weapons to fight the poor, as is currently happening in the Middle East. But we know as well that we are the heirs, with a lot of friends in the world, of the struggles against slavery, injustice and war in the past centuries. Struggles that our mothers and our fathers together won. These legacies are the jewels feeding our hope.
GCAP – the Global Call for Action Against Poverty – is calling again to fight poverty, inequalities and injustice in all their forms. We do it chanting again that We Shall Overcome.
One in nine face hunger: Inequality drives global figure to 10-year high
For the third year in a row, hunger and malnutrition are on the rise, back to levels last seen nearly 10 years ago, the UN Special Rapporteur on the right to food told the UN General Assembly.
Today, Hilal Elver said, one in nine people face hunger and 2 billion people are food insecure.
This lack of progress in the realization of the right of everyone to food confirms that states have struggled to fulfil their promise to “leave no one behind,” as embedded in the 2030 Agenda. Yet the SDGs do provide a roadmap for adopting policy reforms and expand social and legal protections for the most vulnerable groups.
“The Sustainable Development Goals, are a potentially transformative tool to advance the realization of the right to food, as well as other economic, social and cultural rights,” the expert said.
Accomplishing the goals first and foremost requires tackling the inequalities that have undermined the right to food and left too many behind.
“A human rights based vision of the Goals gives high priority to the more than 2.5 billion people who depend on agriculture for both subsistence and their livelihoods. It also requires dispersing wealth to close the inequality gap within and among countries and between individuals,” said Elver.
Implementing fiscal policies that redistribute wealth will help reallocate power and promote greater access to productive resources within food systems, especially for the world’s poor, as redistribution via taxation or reallocation of existing spending may resolve over 75 percent of global poverty.
The Special Rapporteur also called on States to continue to expand access to social protection systems, saying that less than half of the world’s population is effectively protected by legally enforceable social protections and that coverage is often limited by inadequate implementation.
Ensuring that no-one is left behind also requires eliminating the structural discrimination that interferes with the enjoyment of a wide range of human rights, Elver said.
“Women and girls, youth, peasants, rural communities, indigenous peoples and migrants face persistent discrimination and increased vulnerability to hunger in disaster and conflict settings. States must use the Goals as a blueprint for actively engaging and empowering groups that have been historically left behind.”
The global agenda for change cannot be achieved if the right to food is not guaranteed. States must trade in market-driven policies for human rights based solutions and allocate sufficient resources to support the implementation of the Goals, Elver said. http://hilalelver.org/
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