The Future is Equal

Rachel Schaevitz

World’s top 1% own more wealth than 95% of humanity

  • Over a third of world’s biggest 50 corporations —worth $13.3 trillion— now run by a billionaire or has a billionaire as a principal shareholder.
  • Global South countries own just 31 percent of global wealth, despite being home to 79 percent of global population.
  • Oxfam urges multilateral action to advance new global framework on tax, cancel debts and rewrite intellectual property rules for pandemics.

The richest 1 percent have more wealth than the bottom 95 percent of the world’s population put together, new Oxfam analysis of UBS data reveals today ahead of the annual UN High-Level General Debate.

 

Billionaires are exerting new levels of control over economies, with a billionaire either running or the principal shareholder of more than a third of the world’s top 50 corporations. The combined market capitalization of these corporations is $13.3 trillion.

 

Oxfam’s briefing paper “Multilateralism in an Era of Global Oligarchy” warns that multilateral efforts to respond to critical global challenges, including the climate crisis and persistent poverty and inequality, are being undermined by the ultra-wealthy and mega-corporations fueling inequality within and between countries.

 

Despite being home to 79 percent of the world’s population, Global South countries own just 31 percent of global wealth.

 

“The shadow of global oligarchy hangs over this year’s UN General Assembly. The ultra-wealthy and the mega-corporations they control are shaping global rules to serve their interests at the expense of people everywhere. The iconic UN podium is increasingly feeling diminished in a world in which billionaires are calling the shots,” said Amitabh Behar, Oxfam International’s Executive Director.

 

The paper describes a “movement toward a global oligarchy,” where the ultra-rich, often through their increasingly monopolistic corporations, shape global political decision-making and rules to enrich themselves while thwarting vital global progress.

 

The top 1 percent own 43 percent of all global financial assets. Just two corporations control 40 percent of the global seed market. The “big three” US-based asset managers —BlackRock, State Street, and Vanguard— hold $20 trillion in assets, close to one-fifth of all investable assets in the world.

 

“While we often hear about great power rivalries undermining multilateralism —it is clear that extreme inequality is playing a massive role. In recent years the ultra-wealthy and powerful corporations have used their vast influence to undermine efforts to solve major global problems such as tackling tax dodging, making Covid-19 vaccines available to the world and canceling the albatross of sovereign debt,” said Behar.

 

Oxfam details three recent examples of extreme inequality eroding multilateral efforts —and where civil society and Global South leaders have offered inequality-busting solutions:

 

  • Powerful corporations undermining tax cooperation. The OECD/G20 Inclusive Framework on Base Erosion and Profit Sharing (BEPS) fell short of realizing its potential, with new rules for profit allocation that will deliver only tiny extra revenues for lower-income countries of as little as 0.026 percent of their GDP. The exclusion of financial services from OECD rules is a carve-out attributed to lobbying from countries with large banking and financial sectors. Global South countries, led by African countries, are instead advancing negotiations for a fairer tax convention at the UN that, along with Brazil’s leadership at the G20, offer a pathway for fairly taxing the super-rich and mega-corporations.
  • Big Pharma resisting efforts to break up their monopolies over Covid-19 vaccine technologies to unlock supply. Monopoly control over vaccine production was highly profitable during the pandemic. In 2021 alone, the seven largest manufacturers generated an estimated $50 billion in net profit from the sale of Covid-19 vaccines, resulting in huge payouts to rich shareholders and the emergence of new vaccine billionaires. The CEO of Pfizer Albert Bourla described the call to share Covid-19 vaccine technologies as “dangerous nonsense.” The failure to equitably share vaccines contributed to as many as 1.3 million excess deaths worldwide. A new pandemic treaty with strong provisions to suspend patents and allow for easier transfers of technology offers promise.
  • Private creditors exacerbating the global debt crisis. Low-income countries spend nearly 40 percent of their annual budgets on debt service, over 60 percent more than they spend on education, health, and social protection combined. Over half of low- and middle-income countries’ external debt is owed to private lenders like banks and hedge funds. Some of these creditors are “vulture funds,” which purchase distressed debt on the cheap and exploit legal mechanisms to be repaid in full, reaping outsized profits.

“Only a solidarity-based multilateralism can reverse the movement toward global oligarchy. Some world leaders are showing they recognize this and are stepping up to fight inequality —but we need many more to demonstrate this courage,” said Behar.

“Ultimately, a fairer world and international order —where corporations pay their fair share, global public health is prioritized, and where all countries can invest in their own people— benefits us all. This is not new, and it’s long what leaders especially from the Global South have called for.” 

 

ENDS

 

Notes to editors

 

Download Oxfam’s briefing paper “Multilateralism in an Era of Global Oligarchy..

 

The pandemic has created at least 40 new pharmaceutical billionaires.

 

Oxfam’s recent analysis of more than 180 of the largest US public corporations shows that they collectively spent $746 million on lobbying in 2022, an average of $4.1 million each.

 

Contact information:

Rachel Schaevitz — [email protected]

 

Risk of disease outbreak as Bangladesh floods

Note to the editors: 

  • According to the UN, Bangladesh Water, 520 unions of 77 Upazilas of 10 districts have been severely impacted. Source: UN Situation Report, 30 August 2024 
  • According to the Department of Public Health Engineering (DPHE) report, as of 31 August 2024, 295,689 latrines have been damaged.  

Contact information:

Rachel Schaevitz, [email protected]

Bangladesh Floods: Affected Communities Look for Urgent Support

Contact information:

Rachel Schaevitz, [email protected]

South Sudan: Hunger crisis escalates

People in Pibor County resort to eating wild vegetables as hunger crisis escalates 

Upcoming rainy season set to reach record-high levels and will likely decimate crops. 

People in South Sudan’s Pibor county are forced to survive on wild vegetables and desert dates as the number of people dying from starvation rises. With torrential rains halting aid flights, the situation could get much worse quickly, warned Oxfam today.  

 More than half the population – over 7 million people – are already facing extreme hunger, including nearly 79,000 people facing catastrophic levels of food insecurity, which is more than double that of last year. 

Dr. Manenji Mangundu, Oxfam South Sudan Country Director said: The scenes of suffering are heart-wrenching. Thousands of people both young and old are hungry and children severely malnourished; many people are going for days without anything to eat. Just this month alone, (July) more than 12 people died from starvation” 

 “The situation will be aggravated by flooding that has started. Record-level flooding is forecasted for this rainy season (June- September), and likely to decimate crops and probably push approximately 3.3 million already vulnerable people to a breaking point.” 

South Sudan continues to suffer from climate induced challenges-like flooding and drought. Over 70% of the country, including Pibor region, has been affected by floods for the past 6 consecutive years. This is aggravated by the economic crisis, ongoing conflict in neighbouring Sudan fueling hunger levels in the majority of communities within South Sudan. 

 Moreover, these drivers have together forced the plummeting of the South Sudanese currency and triggered the highest real food inflation since independence (164%) according to the World Bank, making it harder for people to access food. The prices of staple foods such as wheat, sorghum, oil, and flour have all increased, with some more than tripled since March this year. 

 Adau Nyok, living in the capital of Juba said: “Three months ago, I used to buy 10kg of flour for 3500 SSP ($3.50 NZD). Now it costs me 15,000 SSP ($15.75 USD). Unfortunately, the prices keep rising and we can no longer afford it due to lack of access to cash.”   

As Oxfam and partners provide life-saving interventions like food, cash, clean water supplies and sanitation in South Sudan, Oxfam staff have heard harrowing stories from families who are losing their children due to hunger.  Rebecca Korok Nyarek , who lost her young nephew, said: 

“I lost my nephew because of hunger. He was just 15 years old. There is no food at home. People are starving, and when you go out to the bushes in search of food, sometimes you will get something small to eat, even wild fruits are no longer available because of the rains and that’s how we sleep at night.’’  

Fourteen months into the conflict in Sudan, over 750,000 returnees and refugees have fled to South Sudan where theyfacing catastrophic conditions. Transit centers in Renk and Malakal, designed for 4,000 people, are now sheltering more people than five times their capacity.  

The situation is particularly dire for the refugees and returnees who are fleeing into South Sudan co-habiting with communities already facing extreme hunger while funding is very limited. South Sudan appeal is at 28%, seven months into the year.  

Malnutrition is increasing rapidly among children in the overcrowded temporary transit camps along the Sudan-South Sudan borders, exacerbating the crisis, while aid agencies are pulling out due to lack of funding.  

Aisha, a Sudanese refugee from Khartoum fled her home with her children after her husband was killed at his shop in the city:  “We have arrived here and although the sounds of the guns are no longer there, our children are hungry. Majority of the nights, we sleep on empty stomachs and now with the rains, our tents are sometimes washed away”, said Aisha. 

Oxfam urgently needs $15 million to scale up its operations and save lives of vulnerable children and women affected by the conflict, floods and diseases. 

“Failing to respond when people are starving is a moral failing that must not continue. Without urgent assistance now we risk many more lives. Humanitarian assistance delayed is aid denied, donors must act now” 

 

Note to editors 

  • IPC Figures- An estimated 79,000 people are in IPC Phase 5 (Catastrophe) in April-July 2024.  
  • According to a recent World Bank report South Sudan now holds the highest real food inflation rate in the world at 164 per cent. Real food inflation is defined as food inflation minus overall inflation. 
  • Oxfam calculated the price of flour using the official exchange rates of the Central Bank of South Sudan 

Water War Crimes: How the Israeli Government has weaponised water in its military campaign in Gaza

This report presents a detailed analysis of how the Government of Israel has systematically weaponized water against the Palestinians in its latest assault on Gaza, raising grave concerns of human rights violations and breaches of international law. It highlights ongoing violations of international laws, showing how the Government of Israel has used water deprivation to dehumanize and ultimately threaten Palestinian lives since the 1993 Oslo Accords. This culminates, in a brutal fashion, in the current military operation in Gaza.

The UN Commission of Inquiry finds that Israel’s military operations and civilian policies relating to water in Gaza, following the attacks by Palestinian armed groups on Israel on 7 October 2023, are indiscriminate and disproportionate. The ‘total siege’ which the Government of Israel is using to collectively punish the entire civilian population in Gaza, including restrictions on water, electricity, fuel deliveries and the entry of essential supplies, has compounded the suffering of a population that is now on the brink of famine. The Israeli military’s continuous and extensive bombardment, which has destroyed key roads and essential civilian infrastructure, has further debilitated humanitarian efforts, leaving the population in dire conditions.

Key findings include:
The systematic destruction and obstruction of Gaza’s water and sanitation infrastructure has led to severe water shortages and health crises. Oxfam’s detailed breakdown shows significant damage to water production wells, storage reservoirs, desalination plants and wastewater facilities, drastically reducing water availability and creating unsanitary conditions. Oxfam’s attempts to import critical supplies like water desalination units and repair materials have been obstructed by Israeli restrictions.


The systematic destruction of water facilities, bureaucratic hurdles blocking humanitarian supplies, and inflammatory statements by Israeli officials12 show that the Israeli government is at best reckless as to the humanitarian crisis and its IHL duty to protect civilians. Israel’s military approach has created conditions of destruction and widespread suffering, underscoring the severe nature of the crisis in Gaza resulting from a policy of deprivation and denial.

Read the full report: Water War Crimes report

“Least Cost” means “More Damage” in Government’s Emissions Plan

Oxfam Aotearoa is dismayed by the lack of ambition in the Government’s Emissions Reduction Plan released today.

‘Relying on the least cost option of planting more pine trees, rather than cutting climate pollution, will only cause more damage for communities in Aotearoa and the Pacific on the frontlines of the climate crisis.’ said Oxfam Aotearoa’s Climate Justice Lead, Nick Henry.

‘The gap is growing between our domestic policies and our international commitments. This will cost New Zealand billions of dollars by 2030 if we rely on buying offsets from other countries. The lack of ambition in today’s plan will increase that cost by tens of millions.

‘Today’s announcement makes it clear that the Government now has no plan to reach net-zero, with emissions exceeding net-zero budgets after 2030. The cost of cutting climate pollution is being kicked down the road, while communities in Aotearoa and the Pacific continue to suffer from the worsening climate crisis.

‘We are disappointed to see the lack of significant support for public and active transport in the plan. Improving access to public transport would be one of the best climate wins, and would also help reduce the cost of living for so many.

‘The plan does nothing to fix the Emissions Trading Scheme. We need leadership from Government to stop subsidising pollution through free allocation and change settings that reward planting pine trees rather than cutting gross emissions.

‘It is not credible to claim that increasing oil and gas exploration is compatible with reducing emissions. It is the wrong century for “lesser evil” thinking that fossil gas is better than coal, when renewable energy options are already here and getting cheaper every year. Aotearoa urgently needs to stop producing and burning fossil fuels. Instead, we need a just transition to renewable energy for workers, communities, and the planet.’

Notes for editors:

1. The Emissions Reduction Plan states: ‘The gap between the first and second emissions budgets and the NDC is 101 Mt CO2-e.’ [p. 34].

2. Mt CO2-e is Megatonnes of Carbon-Dioxide equivalent emissions, including emissions of all Greenhouse Gases. New Zealand has committed to cutting net emissions to no more than 571 Mt CO2-e for 2021-2030 in our Nationally Determined Contribution (NDC) under the Paris Agreement.

3. In 2023, Treasury calculated the gap between ERP1 and ERP2 and the NDC as 99.2 Mt CO2-e and estimated that purchasing international offsets to cover this gap would cost between $3.7 billion and $20.6 billion, with a mid-point estimate of $8.6 billion, assuming all emissions budgets were met. [p. 86]

Even assuming Treasury’s lowest cost estimate, increasing the gap between emissions and the NDC commitment by two percent, as today’s plan does, would cost New Zealand at least $80 million.

4. For more on the urgent need for a just transition from fossil fuels, see Oxfam Aotearoa’s 2023 report Closing Time: Why Aotearoa needs a just transition from fossil fuel production now.

For more information:

Rachel Schaevitz/ [email protected]