The global wealth gap has alarmingly widened since 2020, with the top five richest men globally having more than doubled their fortunes. In stark contrast, nearly five billion people worldwide experienced a decline in their financial wellbeing, a study by anti-poverty group Oxfam revealed on Monday.
Released to coincide with the World Economic Forum Annual Meeting in Davos, the report painted a grim picture of economic disparity.
The report also said that the world could see its first trillionaire within the next decade.
Oxfam’s findings indicated that Tesla’s Elon Musk, LVMH’s Bernard Arnault and family, Amazon’s Jeff Bezos, Oracle’s Larry Ellison, and investor Warren Buffett collectively increased their wealth from $405 billion in 2020 to $869 billion by 2023. This steep rise sharply contrasted with the escalating poverty affecting billions globally, Oxfam noted.
The report, “Inequality Inc.,” emphasised the significant role of corporate and monopoly power in deepening economic disparities. It highlighted how the wealthiest individuals, often at the helm of major corporations, amassed wealth through practices like worker exploitation, tax avoidance, and influencing climate policies. Oxfam stressed that nearly seven out of ten of the world’s largest companies were led by a billionaire CEO or principal shareholder, further entrenching wealth concentration.
Paradoxical
Oxfam’s interim chief executive, Aleema Shivji, pointed out the paradoxical trajectory of wealth accumulation and poverty eradication. While the world might see its first trillionaire within a decade, eradicating poverty would take over two centuries at the current rate.
The charity called for radical reforms to redistribute power and wealth from billionaires and corporations back to ordinary people. This included breaking up monopolies, capping CEO pay, and imposing new taxes on permanent wealth and excess profits. These measures, it said, are deemed crucial to reverse the trend of growing inequality and build a more equitable global economy.
Further reading:
- ‘It is time to establish a global tax on the very rich’
- European wealth hits record high, Benelux tops EU millionaires list