Eight richest as wealthy as half of humanity
Just eight individuals, all men, own as much wealth as the poorest half of the world's population, Oxfam said on Monday in a report calling for action to curtail rewards for those at the top.
As decision makers and many of the super-rich gather for this week's World Economic Forum (WEF) annual meeting in Davos, the charity's report suggests the wealth gap is wider than ever before, with new data for China and India indicating that the poorest half of the world owns less than previously estimated.
Oxfam, which described the gap as "obscene", said if the new data had been available before, it would have shown that in 2016 nine people owned the same as the 3.6 billion who make up the poorest half of humanity, rather than 62 estimated at the time.
In 2010, by comparison, it took the combined assets of the 43 richest people to equal the wealth of the poorest 50 percent, according to the latest calculations.
Within the labour share, wage disparities have been growing. Wages in low-skill sectors in particular have been falling behind productivity in emerging economies and stagnating in many rich countries, while wages at the top continue to grow.
A CEO of a company, which is part of the Financial Times Stock Exchange 100 Index, earns as much in a year as 10,000 people working in garment factories in Bangladesh, according to the report. The CEO of India's top information firm earns 416 times the salary of a typical employee.
The squeeze on employment and wages for the lowest-paid workers results in people working for poverty wages in precarious employment. Wage workers in Nepal earned just $73 per month in 2008, followed by $119 in Pakistan (2013) and $121 in Cambodia (2012). Due to the low wage levels, the latter two countries are also among those with the highest incidence of working poverty worldwide.
In many countries, even the legal minimum wage fails to meet the wage required for a decent standard of living. The minimum wage for banana workers in the Dominican Republic is just 40 percent of a living wage; in Bangladesh it is nearer 20 percent of that required to live a decent life.
Over the last two decades the richest 10 percent of the population in China, Indonesia, Laos, India, Bangladesh and Sri Lanka have seen their share of income increase by more than 15 percent, while the poorest 10 percent have seen their share of income fall by more than 15 percent.
Due to a combination of discrimination and working in low-pay sectors, women's wages across Asia are between 70 percent and 90 percent of men's. Many women struggle to survive as the national minimum wage in many Asian countries -- where it is paid -- is on average a quarter of the amount required for a decent standard of living.
Inequality has moved up the agenda in recent years, with the head of the International Monetary Fund and the Pope among those warning of its corrosive effects, while resentment of elites has helped fuel an upsurge in populist politics.
Concern about the issue was highlighted again in the WEF's own global risks report last week.
"We see a lot of hand-wringing - and clearly Trump's victory and Brexit gives that new impetus this year - but there is a lack of concrete alternatives to business as usual," said Max Lawson, Oxfam's head of policy.
"There are different ways of running capitalism that could be much, much more beneficial to the majority of people."
Oxfam called in its report for a crackdown on tax dodging and a shift away from "super-charged" shareholder capitalism that pays out disproportionately to the rich.
While many workers struggle with stagnating incomes, the wealth of the super-rich has increased by an average of 11 percent a year since 2009.
Bill Gates, the world's richest man who is a regular at Davos, has seen his fortune rise by 50 percent or $25 billion since announcing plans to leave Microsoft in 2006, despite his efforts to give much of it away.
While Gates exemplifies how outsized wealth can be recycled to help the poor, Oxfam believes such "big philanthropy" does not address the fundamental problem.
"If billionaires choose to give their money away then that is a good thing. But inequality matters and you cannot have a system where billionaires are systematically paying lower rates of tax than their secretary or cleaner," Lawson said.
Oxfam bases its calculations on data from Swiss bank Credit Suisse and Forbes. The eight individuals named in the report are Gates, Inditex founder Amancio Ortega, veteran investor Warren Buffett, Mexico's Carlos Slim, Amazon boss Jeff Bezos, Facebook's Mark Zuckerberg, Oracle's Larry Ellison and former New York City mayor Michael Bloomberg.
(With details from Reuters)
Comments