inequality

Collective Resilience NZ’s Aid Contributions In Times of Inequality & Crises

August 10, 2020

This report examines New Zealand’s overseas aid contributions against six principles of a quality aid programme that reduces inequality and poverty. The report finds that while New Zealand’s aid contribution has some firm foundations, there is room for substantial improvement. Sixteen recommendations outline steps that will contribute to building a New Zealand Aid Programme that helps achieve collective resilience for all of humanity.

Now is a good time to assess how well the New Zealand government’s overseas development assistance (ODA), or aid, is responding to international development challenges across the world.

Click here to read the full report.

Unpaid care work traps millions of women in poverty

January 20, 2020

Care worker tending to her husband — Arlene Cinco is a shop owner and mother to 4 children in the Philippines. She spends all day working to earn money and doing all the care work for her family. Arlene’s husband, Eduardo, suffered from a stroke in 2016 and was consequently paralysed. She works several jobs to earn money for food, electricity, school fees and her husband’s medicines. Photo: Jed Regala/Oxfam

New Oxfam Report Reveals Sexist Economy

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 (NZD$16 trillion) a year, and more than three times the size of the global tech industry, reveals a new report from Oxfam today ahead of the World Economic Forum (WEF) in Davos, Switzerland.

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.
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
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.
The minimum estimated value of unpaid care in New Zealand is NZD$41.4 billion.

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.

“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.

Davos 2020, Women cleaning — Ruth is a mother of 7 in the Philippines. She is the first to wake up, feeding the kids and getting them ready for school, and the last to sleep after she cleans the house and washes everyone’s clothes. *If Ruth had more free time, she would want to run her own small business. Photo: Jed Regala/Oxfam*

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 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 ages. An estimated 2.3 billion people will be in need of care by 2030 – an increase of 200 million since 2015. Climate change could 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 outlines practical and powerful ways we can recognise, reduce and redistribute this care work. One solution is to make essential public services and infrastructure free and available to all – services like primary healthcare, public transport, early childhood education, water, and care for people who are sick or older. This can be funded through taxing wealth.

Oxfam New Zealand’s executive director Rachael Le Mesurier said Kiwis have an opportunity during an election year to challenge the status quo and demand politicians create change.

“This year, we need to put the global economy on the right track so that we value the right things – including the care work of millions of women and girls – instead of billionaires’ wealth.

“Extreme inequality exists because we have designed our economies to spiral wealth to the very richest people, at the expense of ordinary people. But we can build an economy that values everyone, not just the wealthy elite.

“Governments use tax revenue to invest in the public services that are vital to reducing inequality and poverty. By taxing wealth properly and increasing investment in public services, we can recognise women’s care work for the massive contribution it is to our societies, and help reduce the unfair burden of care work on women so they can get an education, earn a decent living, and have a say in how our societies are run.

“Let’s reset the economy to look after each other, not billionaires’ fortunes. Properly taxing wealth can help us do that.”

Notes

The report, summary and methodology document explaining how Oxfam calculated the figures is available here.

Oxfam’s calculations are based on the most up-to-date and comprehensive data sources available. Figures on the share of wealth come from the Credit Suisse Research Institute’s Global Wealth Databook 2019. Figures on the very richest in society come from Forbes’ 2019 Billionaires List. Billionaire wealth fell in the last year but has since recovered.

Oxfam is part of the Fight Inequality Alliance, a growing global coalition of civil society organisations and activists that will be holding events from 18-25 January in 30 countries, including India, Kenya, Mexico, Pakistan, South Africa, Uganda and the UK, to promote solutions to inequality and demand that economies work for everyone.

Currencies were converted using Reserve Bank of New Zealand figures on 31 December 2019.

Oxfam Report: Time to Care

January 20, 2020

Economic inequality is out of control. In 2019, the world’s billionaires, only 2,153 people, had more wealth than 4.6 billion people. This great divide is based on a flawed and sexist economic system that values the wealth of the privileged few, mostly men, more than the billions of hours of the most essential work – the unpaid and underpaid care work done primarily by women and girls around the world. Tending to others, cooking, cleaning and fetching water and firewood are essential daily tasks for the wellbeing of societies, communities and the functioning of the economy. The heavy and unequal responsibility of care work perpetuates gender and economic inequalities.

This has to change. Governments around the world must act now to build a human economy that is feminist and values what truly matters to society, rather than fuelling an endless pursuit of profit and wealth. Investing in national care systems to address the disproportionate responsibility for care work done by women and girls and introducing progressive taxation, including taxing wealth and legislating in favour of carers, are possible and crucial first steps.

Click here to read the summary of Oxfam’s new report ‘Time to Care’

Click here to read the full ‘Time to Care’ report

Click here to read about the report’s methodology

World screams out for action but climate summit responds with a whisper

December 16, 2019

Responding to the final communiqué of the COP25 climate talks in Madrid, Chema Vera, Interim Executive Director of Oxfam International, said:

“The world is screaming out for climate action but this summit had responded with a whisper. The poorest nations are in a sprint for survival yet many governments have barely moved from the starting blocks. Instead of committing to more ambitious cuts in emissions, countries have argued over technicalities.

“Poorer nations spoke with one voice to demand funds to help them recover from the loss and damage inflicted by the climate emergency. For the homes that have become uninhabitable, the land that has become un-farmable, and the lives that have become unbearable. Wealthy nations have used every trick in the book to stall progress and avoid paying their fair share.

“Now more than ever, it is vital that people across the world keep up the pressure on governments to deliver more ambitious climate action.”

Emissions Cuts

Instead of committing to more ambitious cuts in emissions, countries have argued over technicalities. Commitments made so far have come from countries that account for around only 10 percent of global emissions. They will not keep global temperatures from rising above 1.5°C. If we are to have any chance of avoiding catastrophic climate impacts it is critical that all countries – led by the largest emitters – commit to much deeper emissions cuts in early 2020.

Loss and Damage

COP25 did not establish a new funding mechanism for Loss and Damage. Instead countries agreed to start a conversation about funding and create a new expert group to advise on the issue. They also asked the Green Climate Fund – the main multilateral fund through which rich countries channel climate finance – to take up the matter.

Without new and additional funding, the world’s most vulnerable people will struggle to recover and rebuild after climate shocks. For example, Oxfam’s report, Forced from Home, shows that climate-related disasters are now the biggest driver of internal migration, forcing one person from their home every two seconds. It underlines the need for new and additional money to help communities that cannot adapt to the climate crisis.

Gender Justice

The Gender Action Plan approved at the summit sets out a plan for increasing the participation and leadership of women in international climate talks, and in the design and implementation of climate policies at the national and local level. While the plan still needs to be translated into concrete measures, actions and targets, it is encouraging to see this blueprint for change given that poor women are often the hardest hit by the climate crisis.

Climate Finance

Wealthy countries are not providing the funds that are needed to help poor nations adapt to the climate crisis. Rich polluting countries pledged almost $90 million in new funding for adaptation in Madrid and made additional pledges to the Green Climate Fund. However, Oxfam’s analysis shows that the target of reaching $100 billion per year in climate finance by 2020 remains a distant dream after adjusting for loans and creative accounting.

Reasons to be positive

As the big polluters dissemble and spin, the global movement for climate action is growing bigger and stronger. Young people are standing up for a safer future – showing the leadership that has been severely lacking from governments. Frontline communities from Fiji to Malawi and Peru are fighting back.

The Spanish Government deserves credit for stepping in to ensure COP25 went ahead. The UNFCCC remains the only forum we have for governments, businesses and civil society to try to solve the most pressing issue of our times.

Our hopes rest with the millions of people across the world who are taking to the streets to demand climate justice. Governments must listen and come back to the table in 2020 with the commitment and ambition needed to deliver on the Paris Climate Agreement.

Oxfam G7 Verdict: Big Issues, Little Commitments

August 28, 2019

Oxfam held a climate change protest on the eve of the G7 summit in Biarritz, as world leaders put pressure on Brazil to do more to save the Amazon rainforest from wildfires.

French president Emmanuel Macron put inequality at the top of the agenda, but G7 leaders failed to make meaningful commitments to solve the crisis they have helped create, said Oxfam at the end of the Summit.

“Held in the beach town of Biarritz, France, the G7 Summit brought very few results, which will wash away with the next tide,” said Oxfam’s spokesperson, Robin Guittard. “After failing to get all seven leaders to commit to a comprehensive effort to address inequality, President Macron opted instead for a scattershot approach of piecemeal commitments that unfortunately do not add up to much.”

G7 leaders paid lip service to the dangers of inequality, but they have encouraged and enabled this unequal system to thrive by enabling the super-rich to control politics, by underfunding public services and foreign aid, by under-taxing corporations and wealth, and by fueling climate change and sexism. Perhaps it should be no surprise that at the end of the Summit, they made no commitments to reform the global tax system, invest in universal public services like education, healthcare, and social protection, or in foreign aid. The promised feminist agenda, with the ambition to follow on last year’s Canada presidency, delivered only on limited initiatives.

New business coalitions and corporate pledges pop up on a daily basis, as they did in Biarritz, but Oxfam warns that they are not the solution to the fight against inequality and climate change.

“Everyone must do their part to address inequality and climate change, but voluntary commitments by the private sector cannot replace necessary and urgent public policy and regulations,” said Guittard. “If corporations truly want to do their part, they can start by paying their fair share of taxes in the countries they do business, ensuring gender equality in their corporations, addressing CEO-worker pay ratios, and re-directing their political influence to address inequality and climate, not making it all worse.”

Even with the daily reminders that the climate crisis is upon us, the G7 did not commit to dramatically cut emissions. While France and the UK joined Germany to pledge to the Green Climate Fund, other G7 leaders missed their chance to step up to help poor countries who bear the burden and cost of climate change.

“Time is running out and the world cannot afford to squander moments like this. As the emergencies grow and the alarms ring, the public is increasingly active, showing up in millions on the streets, and in voting booth,” said Guittard. “Public pressure is growing, with young people leading the way. If leaders won’t act, they should step aside and let a new generation take charge.”

Oxfam New Zealand’s director of advocacy and campaigns, Dr Joanna Spratt, said government action on climate breakdown is critical, and New Zealand is falling behind on its responsibilities.

“Even the bare minimum contributions announced by the UK and France at the G7 summit outshine New Zealand’s commitments to the Green Climate Fund so far. New Zealand can no longer shirk its duty to replenish this critical source of funds to battle climate breakdown, and the government now must follow suit through a substantial increase in its contribution.”

At the Pacific Island Forum earlier this month, the group of Pacific Small Island Developing States issued a statement – the Tuvalu Declaration – calling on all states to take the “prompt, ambitious, and successful replenishment of the Green Climate Fund.”

“The government must listen to the voices of small island states in their calls to resource energy transition and adaptation to the climate crisis through the Green Climate Fund, instead of re-announcing money from our existing aid budget,” said Dr Spratt.

“Globally, we need to match our lofty words with actions and significantly increase our climate finance, within a rising aid budget. A good step for the New Zealand government will be a $30m replenishment of the Green Climate Fund, with a plan for increasing our contribution further.”

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5 Steps Governments Can Take To Prevent Another Mauritius Leaks Scandal

July 29, 2019

A 5-point plan to stop big corporations cheating poor countries out of billions of dollars in tax revenue, was published by Oxfam today in the wake of the Mauritius Leaks.

When multinational corporations and the super-rich use tax havens to dodge paying their fair share, it is ordinary people, and especially the poorest, who pay the price. The Mauritius Leaks show that tax havens continue not only to exist but to prosper, despite government promises to rein in tax dodging. Oxfam’s plan lists five steps governments can take to tackle tax avoidance and end the era of tax havens.

Susana Ruiz, Oxfam International’s tax advisor, said:

“Politicians could put a stop to tax scandals if they wanted to. Oxfam has listed 5 concrete solutions that would prevent another Mauritius Leaks scandal and ensure multinational corporations pay their fair share of tax wherever they do business. Developing countries can revise or void their tax treaties and introduce withholding taxes to better protect their tax revenue, and all governments – rich and poor – agree to set a global minimum effective tax rate on corporate profits.

“There is no time to waste. Developing countries lose an estimated $100 billion a year in tax revenue as a result of tax dodging by multinational corporations, and even more as a result of damaging tax competition between countries. This money is desperately needed to end hunger, tackle the climate crisis, and ensure all children have the chance of an education.”

Oxfam’s 5-point plan to build a fairer global tax system calls on governments to:

(1) Agree new global tax rules in the negotiations led by the OECD under the mandate of the G20 to ensure fair taxation of big corporations. This should include the introduction of a global minimum effective tax rate set at an ambitious level and applied at a country-by-country basis without exception. This would put a stop to the damaging tax competition between countries and remove the incentive for profit shifting – effectively putting tax havens out of business.

(2) Developing countries should not give away their taxing rights. Many treaties result in multinational companies not paying certain types of tax at all in any country. Rich countries have a responsibility in ensuring fair taxation with their investments and the projects they finance. Governments of developing countries can protect their tax base from erosion by revising or voiding their tax treaties, introducing withholding taxes and implementing strong tax anti-abuse rules.

(3) End corporate tax secrecy by ensuring all multinational companies publish financial reports for every country where they operate. The current OECD initiative on country-by-country reporting falls well short of the mark as it does not cover all multinational corporations and it does not require companies to make their financial reports publicly available. This means poor countries are unable to access the information to identify tax cheats. Stronger European proposals on public country-by-country reporting were due to be agreed this year but are being blocked by EU member states such as Germany, Ireland, and Luxembourg.

(4) Agree a global blacklist of tax havens based on comprehensive objective criteria and take strong countermeasures including sanctions to limit their use. Governments have yet to agree an objective global list of tax havens. A farcical OECD-G20 blacklist published in July 2017 features only Trinidad and Tobago. The more comprehensive European Union list omits European tax havens such as the Netherlands and Ireland.

(5) Strengthen global tax governance by creating a global tax body where all countries can work together on an equal footing to ensure the tax system works for everyone. The new round of global tax negotiations (BEPS 2.0) is a historic opportunity to put a stop to damaging tax competition and corporate tax avoidance, and to build a fairer tax system that works for the benefit of all people and not just a fortunate few. Even if the new round of global tax negotiations (BEPS 2.0) delivers positive results, a more inclusive tax body is required to oversee the global governance of international tax matters and strengthen international tax cooperation.

Notes to editors:

Download Oxfam’s 5-point plan here.

Mauritius Leaks is a global investigation by the International Consortium of Investigative Journalists (ICIJ). For more details see: https://www.icij.org/investigations/mauritius-leaks/