Oxfam logo
The Future is Equal

Oxfam logo in green

Rachel Schaevitz

NZ’s two richest men gain $1.1b while poorest Kiwis lose out

The two richest people in New Zealand added an astounding NZ$1.1 billion to their fortunes in 2017-2018, while the wealth of the poorest half of the country decreased overall, according to new Oxfam research to be released today.

The report also reveals that the richest 5% of the population collectively owns more wealth than the bottom 90%.

Oxfam’s research forms part of a global report released to coincide with this week’s annual meeting of the wealthiest and most powerful people in the world, as they gather at the World Economic Forum in Davos, Switzerland. Prime Minister Jacinda Ardern is scheduled to attend the meeting, which focuses on global politics, economics and social issues.

Published later today, the full report, Public Good or Private Wealth?, shows how the growing gap between rich and poor is undermining the fight against poverty, damaging local economies and fuelling public anger across the globe. The report reveals how governments are exacerbating inequality by, on the one hand, underfunding public services such as healthcare and education, while, on the other, under taxing corporations and the wealthy, and failing to clamp down on tax avoidance. The research also finds that consistently, women and girls are hardest hit by rising economic inequality.

Rachael Le Mesurier, executive director of Oxfam New Zealand, said: “We have a long way to go before we can say that every Kiwi is getting a fair go. We know inequality is harmful for us all. It perpetuates poverty, erodes trust, fuels crime, makes us unhappy, negates economic growth, and robs opportunity from the poorest – including shortening their lives. And women and girls suffer the most – across their lifetimes women have less opportunity than men to get paid work, they earn less and are less able to invest in assets.

“One of the key things we can do to tackle inequality here and across the world is to tax wealth more. Our taxes pay for schools, hospitals, and infrastructure such as communications and roads on which we all rely. Across the world, rich multinational corporations and extremely wealthy individuals are not paying their fair share. When big business and the super-rich don’t pay their fair share of tax, the rest of us pay the price – with kids without teachers, long waiting lists for health interventions, and not enough police in our communities.

“But to tax wealth more, we need to see it. We need more transparency in our tax system, both for multinational corporations and extremely wealthy individuals. We need more information in the public realm so that we can make sure that the wealthy pay their fair share – and that we grow a New Zealand where everyone gets a fair go in life.

“We are eagerly anticipating the release of the Tax Working Group’s final report early this year. As a country we’ve been talking about wealth taxes, such as capital gains, for some time now. To tackle the stubborn inequality that plagues ordinary, working Kiwis, we need to stop talking and start doing,” said Le Mesurier. “We hope the Tax Working Group takes this opportunity to recommend greater wealth taxes and more transparency, and we encourage the government to take the bold action necessary to reduce inequality”.

Notes to editors

  • Oxfam’s calculations are based on the most up to date, comprehensive data sources available. Figures on the share of wealth owned by the poorest half of humanity come from Credit Suisse Wealth Databook and relate to the period June 2017 – June 2018. Figures on the very richest in society are based on more detailed data from the annual Forbes ‘Billionaires List’ and relates to the period March 2017 – March 2018.
  • The two richest New Zealanders are Graeme Hart and Richard Chandler. They own wealth of US$10.1 billion and US$2.1 billion respectively. In 2016 Singapore-based Chandler was named as using Mossack Fonseca, the law firm at the centre of the Panama Papers tax avoidance controversy.

For more information or to arrange an interview please contact:

Kelsey-Rae Taylor | [email protected] | 021 298 5894

Billionaire fortunes grew by $2.5 billion a day last year as poorest saw their wealth fall

Billionaire fortunes increased globally by 12 percent last year – or US$2.5 billion a day – while the 3.8 billion people who make up the poorest half of humanity saw their wealth decline by 11 percent, reveals a new report from Oxfam today.

The report is being launched as political and business leaders gather for the World Economic Forum in Davos, Switzerland.

Earlier today Oxfam New Zealand reported that the two richest people in New Zealand added an astounding NZ$1.1 billion to their fortunes in 2017-2018, while the wealth of the poorest half of the country decreased overall by NZ$1.3 billion.

Public Good or Private Wealth shows the growing gap between rich and poor is undermining the fight against poverty, damaging our economies and fuelling public anger across the globe.  It reveals how governments are exacerbating inequality by underfunding public services, such as healthcare and education, on the one hand, while under taxing corporations and the wealthy, and failing to clamp down on tax dodging, on the other.  It also finds that women and girls are hardest hit by rising economic inequality.

Rachael Le Mesurier, Executive Director of Oxfam New Zealand, said:

“The size of your bank account should not dictate how many years your children spend in school, or how long you live – yet this is the reality in too many countries across the globe. While corporations and the super-rich enjoy low tax bills, millions of girls are denied a decent education and women are dying for lack of maternity care.”

The report reveals that the number of billionaires has almost doubled since the financial crisis, with a new billionaire created every two days between 2017 and 2018, yet wealthy individuals and corporations are paying lower rates of tax than they have in decades.

  • Getting the richest one percent to pay just 0.5 percent extra tax on their wealth could raise more money than it would cost to educate the 262 million children out of school and provide healthcare that would save the lives of 3.3 million people.
  • Just four cents in every dollar of tax revenue collected globally came from taxes on wealth such as inheritance or property in 2015. These types of tax have been reduced or eliminated in many rich countries and are barely implemented in the developing world.
  • Tax rates for wealthy individuals and corporations have also been cut dramatically. For example, the top rate of personal income tax in rich countries fell from 62 percent in 1970 to just 38 percent in 2013. The average rate in poor countries is just 28 percent.
  • In some countries, such as Brazil, the poorest 10 percent of society are now paying a higher proportion of their incomes in tax than the richest 10 percent.

At the same time, public services are suffering from chronic underfunding or being outsourced to private companies that exclude the poorest people.  In many countries a decent education or quality healthcare has become a luxury only the rich can afford. Every day 10,000 people die because they lack access to affordable healthcare. In developing countries, a child from a poor family is twice as likely to die before the age of five than a child from a rich family. In countries like Kenya a child from a rich family will spend twice as long in education as one from a poor family.

Cutting taxes on wealth predominantly benefits men who own 50 percent more wealth than women globally, and control over 86 percent of corporations.

Conversely, when public services are neglected poor women and girls suffer most. Girls are pulled out of school first when the money isn’t available to pay fees, and women clock up hours of unpaid work looking after sick relatives when healthcare systems fail. Oxfam estimates that if all the unpaid care work carried out by women across the globe was done by a single company it would have an annual turnover of $10 trillion – 43 times that of Apple, the world’s biggest company.

“People across the globe are angry and frustrated. Governments must now deliver real change by ensuring corporations and wealthy individuals pay their fair share of tax and investing this money in free healthcare and education that meets the needs of everyone – including women and girls whose needs are so often overlooked. Governments can build a brighter future for everyone – not just a privileged few,” added Le Mesurier.

Notes to editors

  • The report, methodology document explaining how Oxfam calculated the figures is available here. The data set is available on request.

Oxfam’s calculations are based on the most up to date, comprehensive data sources available.  Figures on the share of wealth owned by the poorest half of humanity come from Credit Suisse Wealth Databook and relate to the period June 2017 – June 2018. Figures on the very richest in society are based on more detailed data from the Annual Forbes ‘Billionaires List’ and relates to the period March 2017 – March 2018.

World faces unprecedented famine threat, G7 must take action

Group of Seven leaders meeting in Taormina, Sicily, this week should take the lead in fighting famine and immediately fund nearly half ($2.9 billion) of the UN’s urgent appeal to avoid catastrophic hunger and more deaths, urged Oxfam today. Without an immediate and sweeping response, this crisis will spiral out of control.

Further delay will cost more lives.

Deadly famine is already affecting 100,000 people in parts of South Sudan and threatens to extend to Yemen, Somalia and northeast Nigeria. Widespread famine across all four countries is not yet inevitable, but G7 leaders need to act now with a massive injection of aid, backed with a forceful diplomatic push to bring an end to the long-standing conflicts that are driving this hunger crisis.

Winnie Byanyima, Executive Director of Oxfam International, said: “Political failure has led to these crises – political leadership is needed to resolve them. G7 leaders cannot walk away from Taormina without providing emergency funding and clear solutions to tackle the root causes: the world’s most powerful leaders must now act to prevent a catastrophe happening on their watch.

“Our world of plenty today faces an unprecedented four famines. If G7 leaders were to travel to any of these four countries, they would see for themselves how life is becoming impossible for so many people: many are already dying in pain, from disease and extreme hunger.”

If each G7 government contributed its fair share to the UN’s appeal for $6.3 billion for all four countries, Oxfam estimates that this would raise almost half of the total required. These UN appeals are still only 30 percent funded across the four countries.

No G7 country has provided its fair share of funding for all four countries.

G7 commitments to food security and nutrition
In 2015, the G7 committed to lift 500 million people out of hunger and malnutrition, yet 30 million people across the four countries are now experiencing severe hunger – 10 million of whom are facing emergency and famine conditions. The number of people experiencing acute food insecurity is estimated to have risen by about 40 percent over the last two years. G7 leaders should uphold the commitments they have made on hunger and malnutrition and give more importance to crisis prevention and supporting smallholder farmers’ resilience in order to reduce needs over time.

Conflict and famine
In addition to funding the UN appeal, G7 leaders should press for immediate ceasefires and inclusive peace processes, as well as for safe access to places where aid agencies are having trouble reaching people in need. Conflict has driven millions of people from their homes and communities, cutting them off from their fields, jobs, food, and markets.

In Yemen, countries including G7 members continue to supply weapons, munitions, military equipment, technology, or logistical and financial support for military action that is in contravention of the rules of war. In South Sudan, three years of conflict have displaced more than 3.5 million people – including 2 million children. Somalia also remains an active conflict where access is limited by Al Shabaab, as well as other parties involved in the conflict. Nigeria’s conflict has spread into neighboring Niger, Chad and Cameroon forcing 2.6 million people to flee and leaving nearly 11 million people in need of emergency aid.

Famine and hunger are the glaring symptoms of larger challenges that include climate, migration and inequality which must all be tackled together if progress is to be made.

Climate
Climate change is not a distant future threat: it is helping fuel a humanitarian disaster in Somalia and other countries in the Horn of Africa.  There could be no stronger call to G7 leaders to take action on climate change than suffering on this scale. The G7 members must make it clear that they are committed to implementing the Paris Agreement. It is vital that the summit produces a clear and strong outcome on climate change action – no excuses.

Migration
When G7 leaders have chosen a symbolic place to meet in Sicily – Europe’s coast, where thousands of people have died trying to reach safety and security – it is reprehensible that they are set to overlook the suffering of refugees and migrants on their doorstep, and ignore the challenge of migration and forced displacement. Rich countries should lean into this challenge, exercise positive global leadership and compassion, and agree to concrete steps that protect the dignity and rights of people on the move.

Inequality
When one in 10 people go to bed hungry every night, famine represents one extreme end of the inequality spectrum and is in itself the result of the instability which inequality helps to drive. Oxfam is calling on G7 leaders to commit to the developing a fully fledged action plan to tackle growing inequality, in line with their commitment to the 2030 Agenda and Sustainable Development Goals.

Notes to editors

1. Download Oxfam’s latest policy report on what governments need to do to avert the threat of global famine: https://www.oxfam.org/sites/www.oxfam.org/files/bn-four-famines-190517-en.pdf

2. Oxfam will be attending at the G7 summit with spokespeople for interview on the ‘four famines’, inequality, climate and migration in English, Italian, French, Spanish, German, Chichewa/Nyanja and Tumbuka.

3. Oxfam will be presenting a number of stunts over the period of the summit on the themes of the 4 famines, climate and migration. The first will take place on the morning of Thursday 25 May and will be on the subject of the four famines, taking place near the International Media Centre in Giardini Naxos. Contact us for further details.

4. Oxfam can offer journalists the opportunity to visit some of our programs supporting migrants in Sicily. Contact us for further details.

5. The UN ‘four famines’ appeal was originally launched for a total of $5.6 billion  http://interactive.unocha.org/emergency/2017_famine/index.php  and was later revised up to $6.3 billion after the Somalia response plan was updated in earlier this month http://reliefweb.int/report/somalia/somalia-humanitarian-response-plan-may-2017-revision

6. There has been a rise of 40 percent in the number of people experiencing acute food insecurity over the last two years according to FEWSNET: http://www.fews.net/global/alert/january-25-2017

7. Oxfam’s fair share analysis: Oxfam calculates its fair share analysis by comparing data from the UN’s Financial Tracking System (FTS) and information received from G7 members with their national income. No G7 country has provided its fair share of funding for all four nations facing famine. (The FTS website may not have been updated with recent pledges.)

According to UN figures, as of May 18, only 30 percent of the $6.3 billion needed has been received. Country by country, this means that Nigeria is only 21 percent funded; Somalia, 33 percent; South Sudan, 42 percent; and Yemen, 21 percent.

G7 leaders must commit to fund their fair share for each country, while pressing other donors to do their part, in order to prevent more people from dying of hunger. These contributions alone would mean $492 million for Nigeria, $703 million for Somalia, $764 million for South Sudan, and $964 million for Yemen.

G7 must also commit to increase aid for longer term solutions that build resilience and improve food security and nutrition, in order to prevent further crises from escalating into disasters.

Only one G7 leader (UK) has provided its fair share for Yemen, two (UK and Canada) for South Sudan, two (UK and Germany) for Somalia and two (Canada and Germany) for Nigeria.

The United States Congress commitment of $990m to address famine in the four countries is welcomed, but this must be urgently translated into aid on the ground if the impact of famines is to be reduced.

View or download Oxfam’s fair share analysis here: http://oxf.am/ZERG.

8. About 30 million people are are experiencing alarming levels of hunger in Nigeria, South Sudan, Somalia and Yemen – 10 million of them are facing emergency and famine conditions. (10 million people are at IPC4 and 5, and a further 20 million people are at IPC3.)

• South Sudan: 4.9 million people dangerously hungry (IPC Phases 3-5, including 100,000 already in famine)
• Yemen: 17 million people dangerously hungry (IPC Phases 3-4)
• Somalia: 3.2 million people dangerously hungry in Somalia (IPC Phases 3-4)
• Nigeria: 4.7 million people dangerously hungry in northeast Nigeria (IPC Phases 3-5)

9. Climate change is helping to fuel a humanitarian disaster in East Africa where 13 million people are dangerously hungry and Somalia is on the brink of famine: https://www.oxfam.org/sites/www.oxfam.org/files/mb-climate-crisis-east-africa-drought-270417-en.pdf

10. Oxfam is responding directly and with local organizations across the affected countries delivering food and other essential aid including cash so that people can buy from local markets. It is striving to ensure people have clean water to be used for drinking, cooking, washing and sanitation and to fight waterborne diseases such as diarrhea and cholera. We are also helping vulnerable communities, focusing especially on women, to stay safe and access aid in these unstable circumstances.

Oxfam helps Syrians to find safety without risking their lives at sea

Oxfam has joined a program to help Syrians find refuge in Europe. 60 people, including many families, will arrive in Italy today to seek asylum as part of a humanitarian visa programme approved by the Italian government. The people will be hosted by Oxfam in the Italian region of Tuscany for the duration of their asylum process.

[Read more…] about Oxfam helps Syrians to find safety without risking their lives at sea

International community yet again falls short of meeting Yemen’s dire need

In response to the US$1.12 billion pledged to Yemen during the high-level event today in Geneva, Oxfam says the international community has fallen short in its support for the Yemeni people. Despite wide recognition of the dire level of need in the discussions, only about half of the US$2.1 billion UN appeal for Yemen was raised – which even if fully funded would only have met the basics needs of 12 million of the 18.6 million Yemenis in need of humanitarian aid.

Isabelle Moussard Carlsen, Action contre la Faim’s Operations Director, said: “Governments need to stop undermining the humanitarian response by fuelling the conflict with arms and violence. Starvation is not an acceptable strategy or consequence of the conflict. Donors must step up immediately and fully fund the Humanitarian Response Plan and actively engage with every stakeholder to facilitate the delivery of aid before Yemen reaches tipping point and we witness large scale starvation. ”

“The pledges made today mean the difference between life and death for millions of people. But donors are leaving Geneva without having committed enough funding to meet the needs of just the 12 million most vulnerable out of 19 million in need. I fail to grasp how the international community can see this crisis unfold without doing its outmost to limit the suffering that Yemenis are facing,” said Mutasim Hamdan, Yemen Country Director of the Norwegian Refugee Council.

Shane Stevenson, Oxfam’s Senior Programme Manager for Yemen, said: “However much money has been pledged today, the best way to prevent famine in Yemen is for weapons to fall silent and for the parties to the conflict to return to the negotiating table. Preventing famine must be the priority – not military gains. Diplomatic engagement is needed with all sides of the conflict and pressure must be applied immediately to suspend all military operations that block access or safe movement of food supplies.”

Yemeni civil society activist, Nabil Al-Kumaim, said: “Ultimately, Yemen needs peace. The international community must engage with all parties to the conflict to address the root causes. There must be a political, not military, solution to this crisis. We need a comprehensive and nationwide cease-fire and an inclusive political process with meaningful participation of women, youth and other marginalized groups. The international community has a responsibility in seeing that this achieved.”

Furthermore, Yemeni humanitarian Non Governmental Organisations who are delivering much-needed aid to those in need and who came to Geneva specially for the conference were not allowed a meaningful role in the high-level discussions.

Donate

Copyright © 2024 Oxfam Aotearoa.

Oxfam is a worldwide development organisation that mobilises the power of people against injustice. Oxfam Aotearoa is a registered charity with the New Zealand Charities Register (registration CC24641). Donations are tax refundable.

Site by