The Future is Equal

Media Releases

Oxfam response to Climate Commission draft report

Oxfam welcomes the release of the Climate Change Commission’s draft report on cutting New Zealand’s pollution, but says that doing our fair share for 1.5 degrees means much more ambitious action is needed now than the Commission currently recommends.

Oxfam New Zealand Campaigns Lead, Alex Johnston, said: “We can use this report as a launching pad to step up our efforts to tackle global heating, but doing our fair share is going to mean a lot more than tinkering around the edges. We must move faster to get policies implemented.”

Johnston said: “The Commission’s plan  will not meet even our existing Paris Agreement target for 2030, which the Commission themselves found to be inconsistent with global efforts for limiting heating to 1.5 degrees.

“The draft emissions budgets leave the bulk of pollution cuts for later in the 2030s. That means we’re also relying on New Zealand purchasing offshore carbon credits to meet our 2030 Paris target, leaving other nations to make up the shortfall.

“This is a blow to those in the Pacific and other countries on the frontlines of climate change, as New Zealand is burning through much more than our fair share of the remaining carbon budget this decade,” said Johnston.

“We can bring forward a whole lot of the policies the Commission recommends, like no new coal and gas installation anywhere, phasing out gas-guzzling cars, and properly pricing agricultural emissions. What’s more, we can invest the billions we’d have to pay in offshore carbon credits to surge ahead in our domestic transformation with a just transition to a thriving, low-emissions society,” Johnston said.

He added: “This domestic action must go alongside standing with the people who are right now experiencing the impacts of climate breakdown: that means at least doubling our climate finance for those in the Pacific and developing countries worldwide.”

Johnston said it was encouraging to see the Commission’s consideration of global equity in its recommendations to increase New Zealand’s Paris Agreement targets, but that the analysis did not filter through into the domestic emissions budgets that the Commission drafted.

He said: “When we consider New Zealand’s fair share of global efforts to limit heating to 1.5 degrees, our action at home needs to be scaled up. The Commission has rightly placed importance on global equity in the need to boost our international action, but hasn’t yet reflected this in their domestic emissions budgets, which are too low to even meet our current international target.

“If New Zealand is to do our fair share to protect our planet and build a safe climate future, we need a cohesive and ambitious plan with global equity at its heart.” 

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Notes to editors:

  • The Commission’s first three emissions budgets use the interquartile range of IPCC 1.5-degree pathways. This assumes that New Zealand would decarbonise at average rate, not taking into account our status as a highly developed country. By contrast, the NDC analysis, finds that Aotearoa should make significantly deeper reductions by 2030 than the average country, due to the country’s economic capacity.
  • The Commission suggested NZ’s Paris Agreement target should be increased to much more than 35% reductions below 2005 levels by 2030. Oxfam’s estimates of New Zealand’s fair share are of at least an 80% reduction below 1990 levels by 2030, or 99% when historical responsibility is taken into account.

For more information or to arrange an interview, please contact:
Kelsey-Rae Taylor on Kelsey-Rae.Taylor@oxfam.org.nz or +6421 298 5894.

42 organisations and noted experts call on NZ Govt to support a People’s Vaccine

An open that was delivered to Prime Minister Ardern and Ministers Mahuta and O’Connor, a letter signed by 42 organisations and noted experts requesting that Aotearoa New Zealand support a People’s Vaccine by backing the waiver proposed by India and South Africa at the WTO to relax certain provisions of the TRIPS Agreement for the prevention, containment and treatment of COVID-19.

Wealth of New Zealand’s richest person soars by $3.4bn since beginning of pandemic

New Zealand’s richest citizen, Graeme Hart, has seen his fortune increase by NZ$3,494,333,333 since March 2020 – a sum equivalent to over half a million New Zealanders receiving a cheque for NZ$6,849 each, reveals a new analysis from Oxfam today.  

The New Zealand analysis precedes a global report being published by Oxfam at 1pm NZT today, released to coincide with the opening day of the World Economic Forum’s ‘Davos Agenda’. It shows how the rigged economic system is enabling a super-rich elite to amass wealth in the middle of the worst recession since the Great Depression while billions of people and businesses are struggling to make ends meet.

Oxfam spokesperson Dr Joanna Spratt said it is a symptom of a broken economic model that a small handful of individuals are able to dramatically increase their wealth at times of unprecedented global need.

“While the super-rich amass vast fortunes even during times of global crisis, essential services like healthcare, education and social welfare go underfunded,” Spratt said.

“Across our region people are facing immense challenges, from the demand for foodbanks in New Zealand cities to those rebuilding their homes in Fiji following Cyclone Yasa. The hardships caused by coronavirus and climate destruction hit people with the least the hardest.

“But the unequal impacts are not inevitable. Our leaders can change our broken economic system that allows a small number of people to accumulate such extreme wealth, which is far beyond what any one person might need.

“Together we have the resources we need to give everybody the same opportunities to not only survive, but thrive,” she said. “The question is how we fairly distribute our resources. People built this system, so we have the power to fix it.”

Spratt said overseas aid and public services at home in New Zealand were often set off against each other in times of financial constraint to illustrate a false point that it must be one or the other.

“If we choose not to accept the such extreme inequality, then we can reprogramme our economic system to create a world where everyone – here at home and overseas – can live a life of dignity. Collectively we have more than enough wealth to do this. We can overcome challenges at home and also do our bit for our region, supporting our Pacific neighbours who endure significant hardships from the coronavirus and recession, on top of those that climate destruction is causing,” she said.

“Oxfam and a coalition of our country’s leading aid agencies have been calling for the government to increase its overseas aid and climate finance to meet this time of unprecedented global need – yet the total sum being requested to help the world’s most vulnerable people is just one third of what Hart earned on top of his existing billions in only ten months during the pandemic. This isn’t right.”

Spratt said creating a fairer system was a matter of political leaders having the courage to reign in excessive wealth and build a “human economy” that benefits everyone, not just a fortunate few.

“In the lead-up to the Pacific Island Forum leader’s meeting in early February, we call on our political and business leaders to choose to leave no one behind as we recover from the coronavirus pandemic and work to stop climate destruction,” she said.

“We must shift our priorities towards building an economy that puts people first – a human economy where wealth is no longer so concentrated in the hands of a fortunate few, and everyone has access to basic services like healthcare and education, in New Zealand and around the world.”

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Notes to editors:

  • Oxfam’s calculations are based on the most up-to-date and comprehensive data sources available. Population data comes from Statistics NZ. Figures on the very richest in society come from Forbes’ 2020 Billionaires List. Because data on wealth was very volatile in 2020, the Credit Suisse Research Institute has delayed the release of its annual report on the wealth of humanity until autumn 2021. This means that we have not been able to compare the wealth of billionaires to that of the bottom half of humanity as in previous years. 
  • Oxfam, World Vision, Christian World Service and the Anglican Diocese of Wellington are leading the year-long campaign to improve New Zealand’s overseas aid and overseas climate action funding at www.bighearts.org.nz, with CARE, Christian Blind Mission, Engineers Without Borders New Zealand, FairTrade Australia NZ, New Zealand Family Planning, Hagar New Zealand, Rotary New Zealand World Community Service, Tearfund, Trade Aid, and UnionAID. 
  • New Zealand currently gives approximately 0.28% of Gross National Income to overseas aid. The internationally agreed target is 0.7% of GNI to overseas aid. 

For more information or to arrange an interview, please contact:
Kelsey-Rae Taylor on Kelsey-Rae.Taylor@oxfam.org.nz or +6421 298 5894.

Mega-rich recoup COVID-losses in record-time yet billions will live in poverty for at least a decade

The 1,000 richest people on the planet recouped their COVID-19 losses within just nine months, but it could take more than a decade for the world’s poorest to recover from the economic impacts of the pandemic, reveals a new Oxfam report today. ‘The Inequality Virus is being published on the opening day of the World Economic Forum’s ‘Davos Agenda’.

The report shows that COVID-19 has the potential to increase economic inequality in almost every country at once, the first time this has happened since records began over a century ago. Rising inequality means it could take at least 14 times longer for the number of people living in poverty to return to pre-pandemic levels than it took for the fortunes of the top 1,000, mostly White male, billionaires to bounce back.

A new global survey of 295 economists from 79 countries, commissioned by Oxfam, reveals that 87 percent of respondents, including Jeffrey Sachs, Jayati Ghosh and Gabriel Zucman, expect an ‘increase’ or a ‘major increase’ in income inequality in their country as a result of the pandemic.

Oxfam’s report shows how the rigged economic system is enabling a super-rich elite to amass wealth in the middle of the worst recession since the Great Depression while billions of people are struggling to make ends meet. It reveals how the pandemic is deepening long-standing economic, racial and gender divides.

 

  • The recession is over for the richest. The world’s ten richest men have seen their combined wealth increase by half a trillion dollars since the pandemic began —more than enough to pay for a COVID-19 vaccine for everyone and to ensure no one is pushed into poverty by the pandemic. At the same time, the pandemic has ushered in the worst job crisis in over 90 years with hundreds of millions of people now underemployed or out of work.
  • Women are hardest hit, yet again. Globally, women are overrepresented in the low-paid precarious professions that have been hardest hit by the pandemic. If women were represented at the same rate as men in these sectors, 112 million women would no longer be at high risk of losing their incomes or jobs. Women also make up roughly 70 percent of the global health and social care workforce − essential but often poorly paid jobs that put them at greater risk from COVID-19.
  • Inequality is costing lives. Afro-descendants in Brazil are 40 percent more likely to die of COVID-19 than White people, while nearly 22,000 Black and Hispanic people in the United States would still be alive if they experienced the same COVID-19 mortality rates as their White counterparts. Infection and mortality rates are higher in poorer areas of countries such as France, India, and Spain while England’s poorest regions experience mortality rates double that of the richest areas.
  • Fairer economies are the key to a rapid economic recovery from COVID-19. A temporary tax on excess profits made by the 32 global corporations that have gained the most during the pandemic could have raised $104 billion in 2020. This is enough to provide unemployment benefits for all workers and financial support for all children and elderly people in low- and middle-income countries.

 

Gabriela Bucher, Executive Director of Oxfam International, said:

“We stand to witness the greatest rise in inequality since records began. The deep divide between the rich and poor is proving as deadly as the virus.”

“Rigged economies are funnelling wealth to a rich elite who are riding out the pandemic in luxury, while those on the frontline of the pandemic —shop assistants, healthcare workers, and market vendors— are struggling to pay the bills and put food on the table.

“Women and marginalised racial and ethnic groups are bearing the brunt of this crisis. They are more likely to be pushed into poverty, more likely to go hungry, and more likely to be excluded from healthcare.”

Billionaires fortunes rebounded as stock markets recovered despite continued recession in the real economy. Their total wealth hit $11.95 trillion in December 2020, equivalent to G20 governments’ total COVID-19 recovery spending. The road to recovery will be much longer for people who were already struggling pre-COVID-19. When the virus struck over half of workers in poor countries were living in poverty, and three-quarters of workers globally had no access to social protections like sick pay or unemployment benefits.

“Extreme inequality is not inevitable, but a policy choice. Governments around the world must seize this opportunity to build more equal, more inclusive economies that end poverty and protect the planet,” added Bucher.

“The fight against inequality must be at the heart of economic rescue and recovery efforts. Governments must ensure everyone has access to a COVID-19 vaccine and financial support if they lose their job. They must invest in public services and low carbon sectors to create millions of new jobs and ensure everyone has access to a decent education, health, and social care, and they must ensure the richest individuals and corporations contribute their fair share of tax to pay for it.

“These measures must not be band-aid solutions for desperate times but a ‘new normal’ in economies that work for the benefit of all people, not just the privileged few.”

Notes to editors

DownloadThe Inequality Virus’ and a methodology document outlining how Oxfam calculated the statistics in the report.

During the week of 25 January, the World Economic Forum (WEF) will digitally convene the ‘Davos Dialogues’, where key global leaders will share their views on the state of the world in 2021.

Oxfam’s calculations are based on the most up-to-date and comprehensive data sources available. Figures on the very richest in society come from Forbes’ 2020 Billionaires List. Because data on wealth was very volatile in 2020, the Credit Suisse Research Institute has delayed the release of its annual report on the wealth of humanity until spring 2021. This means that we have not been able to compare the wealth of billionaires to that of the bottom half of humanity as in previous years.

 

According to Forbes the 10 richest people, as of December 31st 2020, have seen their fortunes grow by $540 billion dollars since 18 March 2020. The 10 richest men were listed as: Jeff Bezos, Elon Musk, Bernard Arnault and family, Bill Gates, Mark Zuckerberg, Larry Ellison, Warren Buffett, Zhong Shanshan, Larry Page, and Mukesh Ambani.

The oldest historical records of inequality trends are based on tax records that go back to the beginning of the 20th century.

The World Bank has simulated what the impact of an increase in inequality in almost every country at once would mean for global poverty. The Bank finds that if inequality (measured by the Gini coefficient) increases by 2 percentage points annually and global per capita GDP growth contracts by 8 percent, 501 million more people will still be living on less than $5.50 a day in 2030 compared with a scenario where there is no increase in inequality. As a result, global poverty levels would be higher in 2030 than they were before the pandemic struck, with 3.4 billion people still living on less than $5.50 a day. This is the Bank’s worst-case scenario, however projections for economic contraction across most of the developing world are in line with this scenario.

In the World Economic Outlook (October 2020), the International Monetary Fund’s worst-case scenario does not see GDP returning to pre-crisis levels until the end of 2022. The OECD has warned this will lead to long-term increases in inequality unless action is taken.

Oxfam calculated that 112 million fewer women would be at risk of losing their jobs or income if men and women were equally represented in low-paid, precarious professions that have been most impacted by the COVID-19 crisis based on an ILO policy brief published in July 2020. 

All amounts are expressed in US dollars.

Oxfam is part of the Fight Inequality Alliance, a growing global coalition of civil society organizations and activists that are holding the Global Protest to Fight Inequality from 23-30 January in around 30 countries, including Kenya, Mexico, Norway and the Philippines, to promote solutions to inequality and demand that economies work for everyone.

 

For more information or to arrange an interview, please contact: 

 

Kelsey-Rae Taylor on Kelsey-Rae.Taylor@oxfam.org.nz or +6421 298 5894.  

Oxfam applauds president Biden’s day one executive actions.

President Biden

Oxfam applauded President Biden’s expected efforts on his first day in office to roll back some of the Trump administration’s most unjust policies, including ending the discriminatory Muslim Ban, rejoining the Paris Climate Agreement, joining global efforts to fight the COVID-19 pandemic, and proposing sweeping immigration legislation that better reflects the values of our country.

“On the campaign trail, presidential candidate Biden promised to take urgent action to put an end to some of the most damaging policies enacted by President Trump. On his first day in office, President Biden did just that, pointing our country on a new, more just course,” said Abby Maxman, Oxfam America’s President and CEO.

Oxfam praised President Biden’s move to officially rejoin the Paris Agreement on climate change, as it is the best way to work with other countries to address the climate crisis.

“The US’s exit from the Paris agreement was indefensible, pointless, and self-defeating. The US is back at the table now, with a renewed mandate for ambitious global climate action and urgency to make up for lost time,” said Kristen Hite, Oxfam America’s Associate Director for Climate Change. “It’s got to be an all-out sprint for bold and inclusive action that protects people and planet.”

While rejoining the Paris agreement is crucial move, Oxfam warned that it is really just the first step. The climate crisis is affecting every country and every continent, but it is the poorest people who are least responsible for the problem who suffer the most. That’s why reducing emissions must be coupled with efforts to help frontline communities cope with mounting climate impacts.

“Addressing the needs of the vulnerable must be at the heart of the Biden administration’s climate agenda, continued Hite. “The Biden administration must step up to do its fair share to address climate change here at home and enable the poorest and most vulnerable around the world to do the same for themselves. We must bridge borders and stand up for the right to a livable planet for all.”

Oxfam also praised President Biden’s executive order repealing the discriminatory Muslim ban that was rooted in divisiveness, fearmongering, and hate.

“By repealing the Muslim Ban on day one, President Biden has made it clear to the world that banning people based on their identity does not reflect American values, said Isra Chaker, Oxfam America’s Migration and Protection Campaign lead.  “No community should be discriminated against because of their religion or where they come from.”

President Trump’s administration waged an all-out assault on the principles of tolerance and inclusion that are the bedrock of this country founded by refugees and immigrants. Oxfam called on Congress to ensure that no future president can impose similar discriminatory bans by passing the landmark NO BAN Act.

Oxfam also applauded the comprehensive, progressive new immigration measures President Biden is spearheading, which include rebuilding the US refugee program, creating a pathway to citizenship for undocumented people, and increased efforts to address the root causes of forced migration in Central America.

“We hope this is the beginning of a wholesale repudiation of the anti-immigrant, anti-refugee, anti-Muslim mentality of the Trump administration,” said Chaker. “President Biden can save lives, restore America’s proud legacy as a refuge for people fleeing persecution, and unleash the contributions of immigrants by undertaking a number of reforms that don’t just go back to the pre-Trump era but move forward to build a better, more just, and more humane immigration system.”

Oxfam has worked in El Salvador, Guatemala, and Honduras for decades and knows firsthand the importance of addressing the root cause of forced migration, including efforts to strengthen the rule of law, combat corruption, confront violence, strengthen democratic governance and respect for human rights, and address the structural causes of poverty and inequality.

“Every year, thousands of people in Central America are forced to leave their homes to escape violence, criminal gangs, instability, poverty, and economic hardship,” said Chaker. “Until the root causes are addressed and the situation in these countries improves, people will continue to flee in search of safety and a better life.”

Oxfam also praised President Biden’s reversal of the withdrawal process from the World Health Organization. This unprecedented pandemic calls for a response that engages with experts and promotes local leadership throughout communities, carried out with a sense of shared humanity. By recommitting to the World Health Organization today, President Biden is recommitting the United States to the global fight against the threat of global pandemics like COVID-19.

“A global pandemic requires global solutions. As this global pandemic has only reinforced, America can only be great – and safe – when we work with others to solve the problems facing humanity,” said Noah Gottschalk, Oxfam America’s Global Policy Lead. “No one individual, community, or country can deal with this crisis alone. Only international cooperation and solidarity can save lives and restore the global economy. We must work together, in our communities and across borders, with dignity and compassion. No one is safe until everyone is safe.”

Oxfam called on the new Biden administration to build on these critical first day actions with wind in their sails. This includes taking action to enact rules to protect the health of workers at risk because of COVID-19, ending US support for the war in Yemen, and doing everything possible to make a People’s Vaccine free, fair and available as soon as possible to everyone in the US and around the world. Importantly, President-elect Biden must quickly work with Congress to enact a transformational COVID-19 recovery plan that helps families cope with the economic impacts of the pandemic; get people back to work; rein in corporate power; help rebuild our economy from the bottom up; and begin to tackle the economic; gender, and racial inequalities that have been exacerbated by this crisis, here and around the world.

“In the midst of a global pandemic and facing a climate crisis, we have an enormous task ahead of us, to rebuild while imagining something new,” said Maxman. “Now is not the time for half-measures or tinkering around the edges. Now is the time for bigger, bolder action that will deliver a more resilient and dignified future where everyone can thrive, not just survive.”

13.5 million people face starvation if US designation of Houthis blocks aid and food delivery

13.5 million people face starvation if US designation of Houthis blocks aid and food delivery

13.5 million people in Yemen will be pushed towards starvation by the US designation of Ansar Allah, commonly known as the Houthis, as a terrorist organization. The designation comes into effect today and will seriously affect vital food imports to the country and humanitarian assistance, Oxfam warned.

Muhsin Siddiquey, Oxfam’s Country Director in Yemen, said: “Around 50,000 Yemenis are already facing starvation. This designation is devastating for them and for the millions more who rely on food aid.  The tragic fact is that people will die if food imports are disrupted.

“We desperately need the US to immediately reverse this decision in order to avert catastrophe.   Yemen imports 88% of its food supply but food importers have told us that the designation means they can no longer operate.  I’ve also been told by a major grain importer that there is less than one month’s supply in their warehouse.  People need food – if it can’t be brought into the country how can they eat?”

The United States government’s designation of Ansar Allah means that Oxfam has been forced to immediately pause its support to up to 245,000 people due to restrictions on contributions from private donors in the United States. The flow of remittances – a vital source of income for food insecure people across the country – will also be severely impacted.

Oxfam warned that the effects of this decision will not be confined to the areas controlled by Ansar Allah only and will affect the country as a whole. Oxfam is calling on the US government to reverse both group designations of Ansar Allah, the Specially Designated Global Terrorist (SDGT) designation and the Foreign Terrorist Organization (FTO) designation. While all sides of the conflict have committed violations of international law and unacceptable violent attacks against civilians, the designation will not provide justice or accountability to any of their victims. It will only compound the suffering of Yemen’s most vulnerable people.

Siddiquey explained: “Importers have told us they are worried that banks will no longer be able to do business with them. In any case, over 58% of Yemen’s grain is imported through two ports in Houthi controlled territory, Hodeida and Saleef.   Even if ships could divert to government-controlled Aden, the port simply could not cope with the extra cargoes. Food supplies would be drastically reduced and, most importantly, prices would skyrocket.

“It is an ongoing, unforgivable tragedy that people in Yemen are suffering from malnutrition and lack of water in plain sight of the whole world. Yemenis deserve to live in a country without conflict where their children have a future.”

The US government designation is coming at the worst possible time for Yemeni people.  After six years of deadly conflict, aid to Yemen has already been cut by half with only 50 per cent of the US$3.38 billion needed received by the end of December 2020.

 

Notes to Editors:

Spokespeople available in Yemen.

For more information contact Tania Corbett tcorbett1@oxfam.org.uk / +44 7824 824 359

Figures for food imports to Yemen are here: https://www.acaps.org/sites/acaps/files/products/files/20201216_acaps_yemen_analysis_hub_food_supply_chain.pdf

Aid relief information and update – https://reliefweb.int/report/yemen/yemen-humanitarian-update-issue-12-december-2020

 

Figures for numbers facing starvation and reliant on food aid taken from here – https://reliefweb.int/report/yemen/under-secretary-general-humanitarian-affairs-and-emergency-relief-coordinator-mark-35