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Your questions answered: Oxfam’s Inequality Index

A computer classroom in Oneputa Combined School, northern Namibia. The Namibian government is committed to reducing inequality and secondary education is free for all students. Photo: John Hogg/World Bank

The Commitment to Reducing Inequality Index ranks 152 governments on their policies in three areas critical to reducing the gap between rich and poor: social spending, progressive taxation and labour rights.

Since the index was launched many people have been in touch to find out more – our response to some of the most common comments and questions are outlined below.

Why is Oxfam talking about inequality – shouldn’t it be focused on tackling poverty?

Extreme inequality is trapping millions of people in poverty and must be stopped. The World Bank estimates that 700 million fewer people would have been living in poverty at the end of last decade if action had been taken to reduce the gap between rich and poor. The World Bank has also been clear that there will be no way we can meet the global goal to eliminate extreme poverty unless we redouble efforts to tackle inequality.

My country isn’t ranked correctly.

As a global tool, the index only offers an indication of how well governments are tackling inequality – it doesn’t provide a comprehensive assessment.

The index focuses on taxation, social spending and labor rights because there is widespread evidence that progressive action in these areas can significantly reduce inequality. However, it does not include all policies that have an impact on inequality. For example, it doesn’t look at the distribution of land ownership or the extent to which a country operates as a tax haven. We hope to expand the indicators in future editions of the index and this could have a significant impact on the rankings of some countries. For example, Belgium would fall down the rankings if its role as a tax haven was assessed by the index.

The index is based on the most up to date data that is available from governments and international institutions however it will miss very recent developments. Several countries including Argentina and France have recently made cuts in social spending or corporate taxes which are not reflected in the index – they can expect to slip down the ranking in the next edition of the index.

This is left-wing propaganda.

Oxfam is a non-party political organization. However, we have a duty to draw attention to government action and inaction across the globe that is exacerbating poverty and inequality.

The index focuses on taxation, social spending and labor rights because there is widespread evidence that progressive action in these areas can significantly reduce inequality. For example, collective bargaining by trade unions typically raises members’ wages by 20 percent and drives up market wages for everyone.

Why isn’t my country included in the index?

Some countries have been excluded from the index because there was either insufficient data or major question marks about the quality of the data available. The extremely poor level of public data available for some countries on policies relevant to reducing inequality is a cause for serious concern -, especially in the Middle East. Oxfam is calling for governments to address this data gap.

My country is ranked towards the top of the index – does that mean all is well?

The index ranks countries in relation to each other. This means countries at the top of the index are doing better at tackling inequality than countries further down but it doesn’t mean they are doing everything they could be tackle inequality.

Even Sweden, Belgium and Denmark which top the index can do more. Sweden’s low corporate tax rates benefit wealthy business while its high rate of VAT disproportionately impacts the poorest, Belgium’s corporate tax incentives allow big business to avoid paying their fair share, and Denmark has cut taxes for its wealthiest citizens. Denmark and Belgium have also cut social welfare for their poorest and most vulnerable citizens.

Overall the index found that 112 out of the 152 countries assessed are doing less than half of what they should be doing to tackle inequality in the three policy areas assessed by the index.

What is Oxfam calling for?

The index shows that inequality is not inevitable. It is a policy choice. Government choices matter when it comes to tackling inequality.

Oxfam is calling for all governments to do more to tackle inequality by increasing and improving social spending, building fairer tax systems, and ensuring workers – especially women workers – are better paid and better protected.

Governments must also work with international institutions to improve the quality and quantity of publicly available data on inequality levels in a country and the policies that governments are taking to tackle it.


A key thing the New Zealand government must do right now is crush tax avoidance by multinationals. Our broken tax system means big companies can legally avoid paying a lot of tax in New Zealand, and it’s depriving our social services of millions of dollars each year.

We need you to join us in telling our Minister of Revenue, Judith Collins, that we want our tax policies cleaned up to keep public spending money in New Zealand and to close the gap between the rich and the poor.

Sign the petition

The Commitment to Reducing Inequality Index: A new global ranking of governments based on what they are doing to tackle the gap between rich and poor

In 2015, the leaders of 193 governments promised to reduce inequality as part of the Sustainable Development Goals (SDGs).

Without reducing inequality, meeting the SDG to eliminate poverty will be impossible. Now Development Finance International and Oxfam have produced the first index to measure the commitment of governments to reducing the gap between the rich and the poor.

The Commitment to Reducing Inequality Index uses a new database of indicators covering 152 countries, which measures government action on social spending, tax and labour rights – three areas found to be critical to reducing inequality.

This first version of the CRI Index is work in progress, and DFI and Oxfam welcome comments and additions. We find that there is an urgent need for coordinated global investment to significantly improve the data on inequality and policies to reduce it, and much greater concerted action by governments across the world to reduce the gap between rich and poor.


Making Tax Vanish – How the practices of consumer goods MNC RB show that the international tax system is broken

Big business is able to take advantage of loopholes in global tax laws and avoid tax on a massive scale.

This deprives governments around the world of the money they need to tackle poverty and inequality. It means there is less for them to invest in healthcare, education and jobs.

This report examines the failings of the global tax system that facilitate mass tax avoidance. It looks at one example of a multinational company (MNC) that Oxfam thinks is not paying its fair share and gives an overview of its practices in New Zealand.. It calls on the New Zealand government and business to implement the reforms that are needed to stop MNCs from avoiding paying their fair share of tax in the future.


City of Mosul retaken from ISIS

Responding to an announcement by the Iraqi Security Forces on 9th July 2017 that they have retaken the city of Mosul from ISIS, Oxfam’s Country Director in Iraq, Andres Gonzalez said:

‘The retaking of Mosul will no doubt inspire hope among many Iraqis: hope that they can return home, rebuild their lives, and heal the divisions within their society. But these hopes will not be realised quickly or easily. Mosul residents continue to  face severe risks from revenge attacks and explosives, and a lack of clean water, healthcare, and other basic services.

‘The people of Mosul have already suffered enough and now families may try to return home before it is safe to do so. Those men, women and children returning to Mosul  must be supported with adequate information, guarantees of security, aid from humanitarian agencies, and access to social services.

‘As Mosul rebuilds, all its residents must enjoy the same rights and opportunities – whatever their gender, religion, or ethnic or tribal affiliation. In particular, Mosul residents must not face discrimination or punishment because of family links to ISIS fighters.

‘As the military offensives to retake the cities of Hawija and Tal Afar continue in the coming months, we expect to see even more civilians forced from their homes. The government of Iraq and the international community must not forget these families, who will also need life-saving aid and protection.’

The poor an afterthought at the Hamburg G20

Reacting to the outcome of the G20 summit in Hamburg, Steve Price-Thomas, Oxfam International’s director of advocacy and campaigns, said:

“When looking at the outcomes of the Hamburg summit, we have to ask: ‘what did the G20 do to help the world’s poorest people?’

“Sadly, the answer is ‘not much.’ The needs of the poorest were an afterthought. Despite the anger of many on the streets at the growing divide between the rich and poor, the G20 could only muster a tepid set of policies to tackle poverty and inequality.

“For example- for the G20 to support a ‘blacklist’ of tax havens that lists just one country is breathtaking, and shows just how low the bar is for them to claim success. Corporate tax dodging siphons billions from government coffers and leaves health and education budgets dry.

“Famine is the most brutal expression of poverty. While we’re pleased the United States has joined the Netherlands, the United Kingdom, and Germany in having made substantial commitments towards emergency relief for the ‘Four Famines,’ there’s still a massive humanitarian funding gap left to fill. Furthermore, the conflicts at the root of some of the crises haven’t even been discussed in earnest by this group.”

“Instead, leaders discussed the ‘Compact with Africa,’ an initiative which rests on the dangerously naive assumption that boosting private investment will automatically help the poorest in the continent. If left unchecked, the Compact might simply line the pockets of wealthy foreign investors.

“With the other 19 members firmly defending the Paris Agreement as ‘irreversible,’ President Trump’s stubborn insistence on propping up the fossil fuel industry leaves him isolated and stuck in the past.”

What do an onion dryer, a honey hotline, a mobile banking service and a newsletter have in common?

They’re all improving lives in Papua New Guinea!

Papua New Guinea (PNG) is the largest country in the Pacific, with a population of 7.5 million people. 80% of the population live in rural areas – most of which rely on farming their land for food with little opportunity to sell what they reap in order to pay for things like improved housing, school fees, and making investments into their farming businesses.

Oxfam’s HARVEST project kicked off in PNG last March with the goal of assisting 2000 families to improve their food security and livelihoods.

There have been many successes and many challenges, but thanks to your support, we were able to roll out four very innovative ideas during year one.

Kelly Inae, owner of Mountain Honey, helps provide support for beekeepers alongside Oxfam. Photo: David Shields/Oxfam NZ

An onion dryer.
Bulb onions are a huge source of income for many families, but they need to be dried in order for them to last long enough to sell at lucrative markets in the cities. Farmers in PNG began using wood fires to do this, but after a while decided to trial an all-solar dryer in order to reduce the amount of trees they were chopping down. The all-solar dryer wasn’t completely successful either, as there were too many cloudy days to dry the onions sufficiently. To compromise, Oxfam and partners have rolled out a trial of a hybrid dryer that utilises solar power where possible, but is backed up by a wood burner on overcast days. To offset the continued use of wood, Oxfam are working with partners on natural resource management and reforestation, with a focus on re-planting native trees. Should the results of the hybrid dryer trial be successful, learnings will be passed around onion farmers all over PNG.

A hotline for beekeepers.
Being so far out from the cities, rural farmers can often struggle to get advice on issues that affect their livelihoods. Thanks to your support, even the most remote beekeepers can access instant support with the ‘honey hotline’. Beekeepers can call the hotline right from their village and get advice from experts on everything from caring for bees and managing hives, to monitoring honey production and extracting it to sell. With support as effective as this, farmers can successfully maintain thriving beehives and thriving livelihoods.

A mobile banking service.
Banking in PNG can be incredibly difficult and sometimes dangerous, particularly for women. People may have to travel many kilometres on treacherous roads from rural areas to reach a bank, which can cost them valuable time. Not only are we supporting women to be involved in their family’s finances, but we’re supporting three local community groups to participate as rural mobile banking agents. This enables farmers, both women and men, to bank using their mobile phone right from their village – a much safer and more efficient option.

“Before, we never had bank accounts and had to hide our money or spend it. If we did have a bank account it took all day to travel to town to deposit or withdraw money. It would be expensive to travel and it was not safe. Being able to deposit and withdraw money in our village, people are able to comfortably and safely access their bank accounts. This means they will save more, and more money will be spent at trade stores in our community rather than in town. This will increase our village economy.” – Toppy Sundu.

Photo: John Paul Sundu.

A beekeeping newsletter.
PNG’s domestic honey demand is very high, making beekeeping a viable livelihoods option for people. It’s not as familiar to farmers as growing vegetables, but selling honey has potentially greater rewards. We’ve rolled out the ‘PNG Bee Buzz’ which is published every quarter. Much like a community newsletter, it includes stories and advice on how to deal with common beekeeping issues, where to ask for support and where to get equipment, as well as generating public awareness of beekeeping as a great way to make a living.

The HARVEST Project is supported by Oxfam New Zealand and the New Zealand Aid Programme.