inequality

Wealth of five richest men doubles since 2020 as five billion people made poorer in “decade of division,” says Oxfam

January 17, 2024

Fortunes of five richest men have shot up by 114 percent since 2020.
Oxfam predicts the world could have its first-ever trillionaire in just a decade while it would take more than two centuries to end poverty.
A billionaire is running or the principal shareholder of 7 out of 10 of the world’s biggest corporations.
148 top corporations made $1.8 trillion in profits, 52 percent up on 3-year average, and dished out huge payouts to rich shareholders while hundreds of millions faced cuts in real-term pay.
Oxfam urges a new era of public action, including public services, corporate regulation, breaking up monopolies and enacting permanent wealth and excess profit taxes.

The world’s five richest men have more than doubled their fortunes from $405 billion to $869 billion since 2020 —at a rate of $14 million per hour— while nearly five billion people have been made poorer, reveals a new Oxfam report on inequality and global corporate power. If current trends continue, the world will have its first trillionaire within a decade but poverty won’t be eradicated for another 229 years.

“Inequality Inc.”, published today as business elites gather in the Swiss resort town of Davos, reveals that seven out of ten of the world’s biggest corporations have a billionaire as CEO or principal shareholder. These corporations are worth $10.2 trillion, equivalent to more than the combined GDPs of all countries in Africa and Latin America.

“We’re witnessing the beginnings of a decade of division, with billions of people shouldering the economic shockwaves of pandemic, inflation and war, while billionaires’ fortunes boom. This inequality is no accident; the billionaire class is ensuring corporations deliver more wealth to them at the expense of everyone else,” said Oxfam International interim Executive Director Amitabh Behar.

“Runaway corporate and monopoly power is an inequality-generating machine: through squeezing workers, dodging tax, privatizing the state, and spurring climate breakdown, corporations are funneling endless wealth to their ultra-rich owners. But they’re also funneling power, undermining our democracies and our rights. No corporation or individual should have this much power over our economies and our lives —to be clear, nobody should have a billion dollars”.

The past three years’ supercharged surge in extreme wealth has solidified while global poverty remains mired at pre-pandemic levels. Billionaires are $3.3 trillion richer than in 2020, and their wealth has grown three times faster than the rate of inflation.

Despite representing just 21 percent of the global population, rich countries in the Global North own 69 percent of global wealth and are home to 74 percent of the world’s billionaire wealth.
Share ownership overwhelmingly benefits the richest. The top 1 percent own 43 percent of all global financial assets. They hold 48 percent of financial wealth in the Middle East, 50 percent in Asia and 47 percent in Europe.

Mirroring the fortunes of the super-rich, large firms are set to smash their annual profit records in 2023. 148 of the world’s biggest corporations together raked in $1.8 trillion in total net profits in the year to June 2023, a 52 percent jump compared to average net profits in 2018-2021. Their windfall profits surged to nearly $700 billion. The report finds that for every $100 of profit made by 96 major corporations between July 2022 and June 2023, $82 was paid out to rich shareholders.

Bernard Arnault is the world’s second richest man who presides over luxury goods empire LVMH, which has been fined by France‘s anti-trust body. He also owns France’s biggest media outlet, Les Échos, as well as Le Parisien.
Aliko Dangote, Africa’s richest person, holds a “near-monopoly” on cement in Nigeria. His empire’s expansion into oil has raised concerns about a new private monopoly.
Jeff Bezos’s fortune of $167.4 billion increased by $32.7 billion since the beginning of the decade. The US government has sued Amazon, the source of Bezos’ fortune, for wielding its “monopoly power” to hike prices, degrade service for shoppers and stifle competition.

“Monopolies harm innovation and crush workers and smaller businesses. The world hasn’t forgotten how pharma monopolies deprived millions of people of COVID-19 vaccines, creating a racist vaccine apartheid, while minting a new club of billionaires,” said Behar.

People worldwide are working harder and longer hours, often for poverty wages in precarious and unsafe jobs. The wages of nearly 800 million workers have failed to keep up with inflation and they have lost $1.5 trillion over the last two years, equivalent to nearly a month (25 days) of lost wages for each worker.

New Oxfam analysis of World Benchmarking Alliance data on more than 1,600 of the largest corporations worldwide shows that 0.4 percent of them are publicly committed to paying workers a living wage and support a living wage in their value chains. It would take 1,200 years for a woman working in the health and social sector to earn what the average CEO in the biggest 100 Fortune companies earns in a year.

Oxfam’s report also shows how a “war on taxation” by corporations has seen the effective corporate tax rate fall by roughly a third in recent decades, while corporations have relentlessly privatized the public sector and segregated services like education and water.

“We have the evidence. We know the history. Public power can rein in runaway corporate power and inequality —shaping the market to be fairer and free from billionaire control. Governments must intervene to break up monopolies, empower workers, tax these massive corporate profits and, crucially, invest in a new era of public goods and services,” said Behar.

“Every corporation has a responsibility to act but very few are. Governments must step up. There is action that lawmakers can learn from, from US anti-monopoly government enforcers suing Amazon in a landmark case, to the European Commission wanting Google to break up its online advertising business, and Africa’s historic fight to reshape international tax rules.”

Oxfam is calling on governments to rapidly and radically reduce the gap between the super-rich and the rest of society by:

Revitalizing the state. A dynamic and effective state is the best bulwark against extreme corporate power. Governments should ensure universal provision of healthcare and education, and explore publicly-delivered goods and public options in sectors from energy to transportation.
Reining in corporate power, including by breaking up monopolies and democratizing patent rules. This also means legislating for living wages, capping CEO pay, and new taxes on the super-rich and corporations, including permanent wealth and excess profit taxes. Oxfam estimates that a wealth tax on the world’s millionaires and billionaires could generate $1.8 trillion a year.
Reinventing business. Competitive and profitable businesses don’t have to be shackled by shareholder greed. Democratically-owned businesses better equalize the proceeds of business. If just 10 percent of US businesses were employee-owned, this could double the wealth share of the poorest half of the US population, including doubling the average wealth of Black households.

Notes to editors

Download Oxfam’s report “Inequality Inc.” and the methodology note.

The top five richest billionaires are from the Forbes real-time billionaires list as of the end of November 2023.

It will take 229 (almost 230) years to ensure the number of people living under the World Bank poverty line of $6.85 was reduced to zero.

According to the IMF’s World Economic Outlook Database, the combined GDP of economies in Africa in 2023 is $2,867 billion, while that of countries in Latin America and the Caribbean is $6,517 billion, for a total of $9.4 trillion.

Oxfam defines windfall profits as those exceeding the 2018-2021 average by more than 20 percent.

New Oxfam report shows broken promises on climate finance

June 6, 2023

A new report out this week titled ‘Climate Finance Shadow Report’ from Oxfam shows New Zealand still has much more to do to support poorer countries adapt and respond to the climate crisis.

Oxfam Aotearoa’s Climate Justice Lead Nick Henry said:

“Oxfam’s report reveals that as governments around the world begin negotiations of a new global goal for climate finance, rich countries have already broken their promise to deliver US$100 billion a year to assist developing countries.

“The New Zealand Government is doing better than most on climate finance, but unfortunately the bar is very low. It is time for New Zealand to commit to increasing its climate finance and call on other rich countries to do the same. And deliver on their promises.

“The new report reveals that globally only a quarter of climate finance is given as grants, meaning most climate finance is provided in the form of loans. Although the New Zealand Government has a long way to go in order to do its fair share, one positive take away is that New Zealand has a strong commitment to give climate finance as grants, not loans. Loans only increases the burden on poorer countries as they take on expensive debt. Debt created from the failure of rich countries to deliver on their promises.

“It is also encouraging to see New Zealand increasingly integrate gender-equitable approaches to climate finance, but the Government is a long way off from making sure that the needs of people in all their diversity are met. New Zealand must stand with our whānau in the Pacific – the women, girls, and LGBTIQA+ and others who are on the frontlines of the climate crisis.

“Rich countries must find new ways to fund climate finance by taxing the wealthiest and the big polluters. In addition, Oxfam Aotearoa calls for new and additional finance to respond to loss and damage caused by climate change. This is a separate negotiation leading up to COP28, and should come with new funding.”

Notes:

Click here for the report: https://www.oxfam.org.nz/wp-content/uploads/2023/06/Climate-Finance-shadow-report.pdf

New Zealand’s current climate finance commitments end in 2025. Commitments for the next period from 2026 will need to contribute New Zealand’s fair share of the new global quantified goal on climate finance to be set at COP28 in December. Discussions on the process for setting the new global goal are underway this week in Bonn, at the intersessional meeting of parties to the UN Framework Convention on Climate Change.

Rich countries’ continued failure to honour their US$100 billon climate finance promise threatens negotiations and undermines climate action

June 6, 2023

Rich countries’ continued failure to honor their $100 billon climate finance promise threatens negotiations and undermines climate action

As global greenhouse emissions continue to rise, and climate change wreaks more havoc upon the people and places least responsible for the problem, rich polluting countries are now three years overdue on their promise to mobilize $100 billion a year in climate finance for low- and middle-income countries.

To make matters worse, says Oxfam, the actual support they provide is much less than reported numbers suggest, and is coming mostly as debt that has to be repaid.

Oxfam’s ‘Climate Finance Shadow Report 2023’ published today shows that while donors claim to have mobilized $83.3 billion in 2020, the real value of their spending was —at most— $24.5 billion. The $83.3 billion claim is an overestimate because it includes projects where the climate objective has been overstated or as loans cited at their face value.

By providing loans rather than grants, these funds are even potentially harming rather than helping local communities, as they add to the debt burdens of already heavily indebted countries —even more so in this time of rising interest rates.

Donor countries are repurposing up to one-third of official aid contributions as climate finance rather than putting forward new and additional money, while more than half of all climate finance going to the world’s poorest countries is now coming as loans.

Among bilateral providers, France has the highest share of its bilateral public climate finance through loans, at a staggering 92 percent. Other loan-heavy culprits include Austria (71 percent), Japan (90 percent), and Spain (88 percent). In 2019–20, 90 percent of all climate finance provided by multilateral development banks, like the World Bank came as loans.

“This is deeply unjust. Rich countries are treating poorer countries with contempt. In doing so, they are fatally undermining crucial climate negotiations. They’re playing a dangerous game where we will all lose out,” said Oxfam International’s Climate Change Policy Lead, Nafkote Dabi.

In the lead up to the Bonn Climate Summit (5 to 15 June), Oxfam also finds that climate-related development financing is largely gender-blind. Only 2.9 percent of all funding identified gender equality as worth prioritizing. Only one-third of climate finance projects in 2019-2020 mainstreamed gender, meaning that they took into account both women and men’s specific needs, experiences and concerns.

Oxfam estimates that the real value of funds allocated by rich countries in 2020, to support climate action in low- and middle-income countries was between $21 billion and $24.5 billion, of which only $9.5 billion to $11.5 billion was directed specifically for climate adaptation —crucial funding for projects and processes to help climate-vulnerable countries address the worsening harms of climate change.

“Don’t be fooled into thinking $11.5 billion is anywhere near enough for low- and middle-income countries to help their people cope with more and bigger floods, hurricanes, firestorms, droughts and other terrible harms brought about by climate change,” Dabi said. “People in the US spend four times more than that each year feeding their cats and dogs.”

Oxfam is highly concerned that adaptation funding is given too little attention when, in the past three years, India, Pakistan and Central and South America have all seen record heatwaves, in Pakistan later followed by flooding that affected over 33 million people, while East Africa is mired in its worst drought in over 40 years, contributing to crisis levels of hunger.

“Despite their extreme vulnerability to climate impacts, the world’s poorest countries, particularly the least developed countries and small island developing states, are simply not receiving enough support. Instead, they are being driven deeper into debt,” Dabi said.

The expectation that private investors can be mobilized by low- and middle-income countries to contribute a sizeable chunk of climate financing has not materialized, raising only $14 billion yearly, mainly for mitigation. Oxfam says it is difficult to find details on how this private finance is used or who benefits from it. According to a recent Organization for Economic Co-operation and Development (OECD) report, mobilized private adaptation financing rose sharply from $1.9 billion in 2018 to $4.4 billion in 2020, mainly because of a big liquefied natural gas energy project in Mozambique that does not reveal any adaptation activities.

Oxfam is highly concerned that funding for “loss and damage” —climate impacts that cannot or have not been mitigated or adapted to— still has no predictable place within the international climate finance architecture. Loss and damage finance needs are urgent, with estimates saying that low- and middle-income countries could face costs of up to $580 billion annually by 2030.

Oxfam says that ongoing deliberations under the UN Framework Convention on Climate Change (UNFCCC) to set a new global goal on mobilizing climate finance from 2025 onwards is a chance to rebuild trust between rich and low- and middle-income countries. But if past mistakes are not resolved and simply repeated, this initiative will have failed before it properly starts.

Climate finance providers should be massively scaling-up their efforts and be reporting climate financing on a case-by-case basis, highlighting the actual proportions channeled towards mitigation and adaptation. There is equally an urgent need for more grant-based financing for climate action, and less momentum toward loaning the money they have all promised to give.

Notes to editors

Download Oxfam’s ‘Climate Finance Shadow Report 2023’.

In East Africa alone, drought and conflict have left a record 36 million people facing extreme hunger, nearly equivalent to the population of Canada. Oxfam estimates that up to two people are likely dying from hunger every minute in Ethiopia, Kenya Somalia, and South Sudan.

The UN currently designates 46 countries as LDCs.

According to the OECD, mobilized private adaptation financing rose sharply from $1.9 billion in 2018 to $4.4 billion in 2020, mainly because of a big liquefied natural gas energy project in Mozambique that does not reveal any adaptation activities.

According to Anil Markandya and Mikel González-Eguino (2018), the costs of loss and damage in low- and middle-income countries could reach between $290 billion to $580 billion a year by 2030.

According to the American Pet Products Association, Americans spent $58.1 billion on pet food and treats in 2022.

Dismal conditions in shelters as hundreds of thousands of people in Syria and Türkiye lack water and basic sanitation

February 20, 2023

Hundreds of thousands of people, among those who lost their homes in the massive earthquakes that hit Türkiye and Syria ten days ago, are now crammed into temporary shelters with insufficient clean water or toilets.

In some shelters in Aleppo, Syria, as many as 150 people are having to share a single toilet. Women and children are disproportionally affected. One woman told Oxfam she had to hold herself for 24 hours sometimes, so she doesn’t have to use the only available toilet. “There is no privacy or dignity.”

Moutaz Adham, Country Director of Oxfam in Syria, said: “Cholera cases, which were already on the rise even before the earthquake, could surge given the scarcity of proper sanitation facilities in overcrowded mosques and temporary camps. It is vital that we stop people dying from preventable disease.”

In Türkiye, only a small part of the government’s planned shelter containers has been installed so far, leaving hundreds of thousands of families in small temporary shelters, some with hardly any water taps or toilets.

Oxfam KEDV in Türkiye is working through a network of women’s organisations and cooperatives, volunteers, and public authorities to facilitate the setting up of shelters and tents, and to distribute food, clean water, showers, toilets, hygiene products, and blankets.

Oxfam KEDV’s partners are also providing survivors with information on where to get support and creating safe spaces for women and children.

Syrian refugees in the affected areas in Türkiye have already endured years of multiple displacements. “We don’t think about the future… we are only surviving”, Aziza Ahmet, a Syrian refugee single mother of three, told Oxfam.

In Türkiye, Oxfam’s operation with its partner network aims to reach 1.4m people in the most affected areas, including by restoring water and sanitation systems, ensuring access to food, and supporting people to rebuild their businesses by providing training, mentoring and financial support.

In Syria, Oxfam is currently providing water and hygiene kits in Aleppo with the aim to reach over 26,000 people. The team has begun fixing water taps and toilets for over 1000 families, and support safety checks to 220 buildings.

“We are running against the clock to help. The scale of need is massive. Oxfam is planning to scale up of our operations to reach 300,000 of the most affected people with lifesaving food, clean water, sanitation, and cash,” said Adham.

EARTHQUAKE: Oxfam and partners aim to reach nearly 2 million affected people in Turkiye and Syria

February 14, 2023

Oxfam, together with our partners in Turkiye (Turkey) and Syria, is working to reach nearly 2 million people – 10 percent of the population affected by the quake – with aid and support so that they can rebuild their lives.

Meryem Aslan, Oxfam Spokeswoman in Turkiye said: “People are living in cars, mosques, in tents or huddling around fires in freezing conditions. Emergency shelters are overwhelmed and over-crowded. Many people do not want to stay in the area with hundreds of thousands having been evacuated out of the region.”

In Turkiye, Oxfam KEDV is working closely with dozens of grassroot women-led organisations and cooperatives to reach up to 1.5 million people over the first three years. Our teams have already provided food, shelter, blankets and psychological support to some of most affected areas including Gaziantep, Hatay and Mardin.

“Our teams are experienced, having responded to the 1999 earthquake, but we are facing new hurdles getting aid to those who need it. We are dealing with destroyed roads, nearly 300 aftershocks and an unprecedented scale of devastation. The sheer number of fatalities is heart-breaking. Topping the list of items needed are body bags to bury the dead. In some areas, communication is also limited which is hampering aid distribution,” added Aslan.

The earthquake has impacted over 13 million people in Turkiye – one in every six people. Over 12,000 buildings have been destroyed and many more are threatening to crumble.

Ali, a father of four from Gaziantep, told us, “We were shaking and we were so scared. I thought this was my last day. When I looked at the walls, I felt like they were moving towards me.”

He added, “It was such a bitter day. I hope we never experience this ever again.”

In Hatay, a city affected by the earthquake, only three hospitals remain standing. It is imagined that the earthquake response will take a year in Turkiye, but the after-effects will be felt for many more years to come.

In Syria, the earthquake has caused over 3500 deaths and many more injured.

Abdelkader Dabbagh, Aleppo Area Manager for Oxfam in Syria said: “The earthquake has shattered an already conflict-torn country. People do not have a roof over their heads and are stuck in freezing temperatures with no idea where they could get their next meal. Our team is working with other humanitarian organisations to get clean drinking water and hygiene packs to survivors.”

We already started providing safe drinking water to people in Aleppo. We have also supported safety checks to 220 buildings and begun fixing water taps and toilets for over 1000 of the most impacted people. Over the next six months, Oxfam aims to reach more than 300,000 survivors.

Moutaz Adham, Oxfam in Syria Country Director, said: “This is nothing new for Syrians who have lived and are still living the horrors of over twelve years of conflict. To make matters worse, we are still facing an uphill battle due to years of chronic underfunding, skyrocketing inflation, and scarce supplies of fuel.”

Oxfam calls on the international community to meet the urgent needs of those affected by the earthquake in Turkiye and Syria, and to facilitate aid delivery to both countries along with a longer-term plan to support the survivors in the recovery efforts.

Notes

Oxfam KEDV was founded in 1986 and became an Oxfam affiliate in 2019. Previous to the earthquake, Oxfam KEDV was working with 78 grassroot women organisations and cooperatives in the affected areas and 600 throughout Turkey. We will work with these partners in our humanitarian response to the earthquake.

Oxfam KEDV is also a member to the National Disaster Response Platform, a network formed in 2020 representing 27 national civil CSOs, which coordinates disaster and emergency responses in Turkiye. All NGOs registered with this platform must register with the Acik Acik Association which is responsible for ensuring the transparency and accountability of NGOS.

In Syria, Oxfam has been on the scene since 2013. We get clean water to people affected by the conflict. We distributed cash and food. We also work with people to rebuild their lives including supporting farmers to start farming again through trainings and distribution of seeds and animal fodder as well as repairing irrigation systems.

Data on the death toll in Syria was sourced from AFP via the BBC.

EARTHQUAKE: Oxfam, partners mount response in Turkey and Syria

February 8, 2023

Oxfam humanitarian teams – along with partner organisations in Turkey and Syria – are assessing the fastest, most appropriate way to help affected people in the aftermath of Monday’s devastating earthquake – the biggest in Turkey since 1938.

Turkish authorities have launched an official search-and-rescue mission, asking specifically for mountaineers to help. An Oxfam colleague in Turkey has responded to the call as an expert amateur mountaineer.

Meryem Aslan, Oxfam spokesperson in Ankara, said: “The scale of destruction is vast. Following two big earthquakes and over 60 aftershocks, people are still in shock and fear, they don’t even have time to mourn the lost ones.” She managed to reach family and friends in affected areas by phone – thankful they were alive and well – but many buildings and home were now rubble, she said.

Oxfam in Turkey has partnerships with around 80 women’s cooperatives in ten Turkish provinces that have been most affected by the quake. Given the scale of devastation, Oxfam is currently assessing response plans with them.

“Not only do survivors have to deal with the tragedy before them, but they also have to cope with the extreme cold. It will be impossible for survivors to sleep outside. It’s horrifying to contemplate the days ahead, given that some areas are even now in snow,” said Aslan.

“Reaching survivors will be extremely challenging with many roads and highways damaged or blocked, and over vast distances. Even as Turkey has a lot of expertise in dealing with earthquakes, the scale of the aftermath is daunting. The death toll has already reached over 7,000 people and is growing. The number of survivors who maybe left now with absolutely nothing is likely to be huge,” she said.

“Typically, Oxfam and partners would look to provide protection, water and sanitation, shelter and food support and in the longer-term rehabilitation and reconstruction. We are now assessing the type of immediate and longer-term support that is needed.

“We know that all countries affected by this awful earthquake, and the survivors of it, will need a lot of help and support – not only in the immediate short-term, but in the days and weeks and months ahead.”

In Syria, the cities of Aleppo, Latakia, Hama and Idlib have been badly hit by both the earthquake and continuous, severe aftershocks that have driven people into wintery streets fearing further collapses of buildings. Dozens of buildings have been badly damaged across Aleppo and 46 are reported to have collapsed. As nightly temperatures are expected to drop to zero degrees Celsius. Shelter, food, water, fuel and medical care for those who have been injured are desperately needed.

For Syria, this earthquake hits at a time when the humanitarian need is at its highest in the country. Over 15 million people are in desperate need humanitarian assistance and support.

/Ends.