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The Future is Equal

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economic inequality

Carbon Inequality Kills

The only way to beat climate breakdown and deliver social justice is to radically reduce inequality. This report reveals the catastrophic climate impacts of the richest individuals in the world, and proposes taking urgent action to protect people and the planet.

What little carbon dioxide we can still safely emit is being burned indiscriminately by the superrich. We share new evidence of how the yachts, jets and polluting investments of 50 of the world’s richest billionaires are accelerating the climate crisis. Oxfam’s research shows that the emissions of the world’s super-rich 1% are causing economic losses of trillions of dollars; contributing to huge crop losses; and leading to millions of excess deaths.

As global temperatures continue to rise, risking the lives and livelihoods of people living in poverty and precarity, we must act now to curb the emissions of the super-rich, and make rich polluters pay.

Read the report here.

World’s top 1% own more wealth than 95% of humanity

  • Over a third of world’s biggest 50 corporations —worth $13.3 trillion— now run by a billionaire or has a billionaire as a principal shareholder.
  • Global South countries own just 31 percent of global wealth, despite being home to 79 percent of global population.
  • Oxfam urges multilateral action to advance new global framework on tax, cancel debts and rewrite intellectual property rules for pandemics.

The richest 1 percent have more wealth than the bottom 95 percent of the world’s population put together, new Oxfam analysis of UBS data reveals today ahead of the annual UN High-Level General Debate.

 

Billionaires are exerting new levels of control over economies, with a billionaire either running or the principal shareholder of more than a third of the world’s top 50 corporations. The combined market capitalization of these corporations is $13.3 trillion.

 

Oxfam’s briefing paper “Multilateralism in an Era of Global Oligarchy” warns that multilateral efforts to respond to critical global challenges, including the climate crisis and persistent poverty and inequality, are being undermined by the ultra-wealthy and mega-corporations fueling inequality within and between countries.

 

Despite being home to 79 percent of the world’s population, Global South countries own just 31 percent of global wealth.

 

“The shadow of global oligarchy hangs over this year’s UN General Assembly. The ultra-wealthy and the mega-corporations they control are shaping global rules to serve their interests at the expense of people everywhere. The iconic UN podium is increasingly feeling diminished in a world in which billionaires are calling the shots,” said Amitabh Behar, Oxfam International’s Executive Director.

 

The paper describes a “movement toward a global oligarchy,” where the ultra-rich, often through their increasingly monopolistic corporations, shape global political decision-making and rules to enrich themselves while thwarting vital global progress.

 

The top 1 percent own 43 percent of all global financial assets. Just two corporations control 40 percent of the global seed market. The “big three” US-based asset managers —BlackRock, State Street, and Vanguard— hold $20 trillion in assets, close to one-fifth of all investable assets in the world.

 

“While we often hear about great power rivalries undermining multilateralism —it is clear that extreme inequality is playing a massive role. In recent years the ultra-wealthy and powerful corporations have used their vast influence to undermine efforts to solve major global problems such as tackling tax dodging, making Covid-19 vaccines available to the world and canceling the albatross of sovereign debt,” said Behar.

 

Oxfam details three recent examples of extreme inequality eroding multilateral efforts —and where civil society and Global South leaders have offered inequality-busting solutions:

 

  • Powerful corporations undermining tax cooperation. The OECD/G20 Inclusive Framework on Base Erosion and Profit Sharing (BEPS) fell short of realizing its potential, with new rules for profit allocation that will deliver only tiny extra revenues for lower-income countries of as little as 0.026 percent of their GDP. The exclusion of financial services from OECD rules is a carve-out attributed to lobbying from countries with large banking and financial sectors. Global South countries, led by African countries, are instead advancing negotiations for a fairer tax convention at the UN that, along with Brazil’s leadership at the G20, offer a pathway for fairly taxing the super-rich and mega-corporations.
  • Big Pharma resisting efforts to break up their monopolies over Covid-19 vaccine technologies to unlock supply. Monopoly control over vaccine production was highly profitable during the pandemic. In 2021 alone, the seven largest manufacturers generated an estimated $50 billion in net profit from the sale of Covid-19 vaccines, resulting in huge payouts to rich shareholders and the emergence of new vaccine billionaires. The CEO of Pfizer Albert Bourla described the call to share Covid-19 vaccine technologies as “dangerous nonsense.” The failure to equitably share vaccines contributed to as many as 1.3 million excess deaths worldwide. A new pandemic treaty with strong provisions to suspend patents and allow for easier transfers of technology offers promise.
  • Private creditors exacerbating the global debt crisis. Low-income countries spend nearly 40 percent of their annual budgets on debt service, over 60 percent more than they spend on education, health, and social protection combined. Over half of low- and middle-income countries’ external debt is owed to private lenders like banks and hedge funds. Some of these creditors are “vulture funds,” which purchase distressed debt on the cheap and exploit legal mechanisms to be repaid in full, reaping outsized profits.

“Only a solidarity-based multilateralism can reverse the movement toward global oligarchy. Some world leaders are showing they recognize this and are stepping up to fight inequality —but we need many more to demonstrate this courage,” said Behar.

“Ultimately, a fairer world and international order —where corporations pay their fair share, global public health is prioritized, and where all countries can invest in their own people— benefits us all. This is not new, and it’s long what leaders especially from the Global South have called for.” 

 

ENDS

 

Notes to editors

 

Download Oxfam’s briefing paper “Multilateralism in an Era of Global Oligarchy.”.

 

The pandemic has created at least 40 new pharmaceutical billionaires.

 

Oxfam’s recent analysis of more than 180 of the largest US public corporations shows that they collectively spent $746 million on lobbying in 2022, an average of $4.1 million each.

 

Contact information:

Rachel Schaevitz — [email protected]

 

Amitabh Behar named Oxfam International’s Executive Director

Oxfam International is pleased to announce the appointment of Amitabh Behar as its new Executive Director. Behar is a respected global civil society leader, with three decades of experience and extensive work on human rights, economic inequalities, governance accountability, philanthropy, democracy and social justice. He was selected following a competitive recruitment process.

Behar joined Oxfam in April 2018 as the Chief Executive of Oxfam India. More recently, he served as Oxfam International’s Interim Executive Director.

“Behar is a thoughtful and creative feminist leader, with an in-depth understanding of the causes and complexities of poverty, inequality, discrimination and suffering. We are confident in his ability to convene our confederation, alongside our partners, to deliver our vision for a just and equal world,” said Dr. Aruna Rao, the Chair of the Oxfam International Board of Directors.

Behar said: “I embark on this new chapter acutely aware of the global and interconnected challenges we face in our world today. We require urgent action built on new solidarities, new imaginations, and new dreams to deliver a more equal and sustainable future for all.

“Oxfam carries a rich legacy rooted in working with communities while advocating for systemic change. I am eager to channel our collective energies, boldness, resources, and partnerships in support of peoples’ power for the good of majority of the global population.”

Behar has made valuable contributions to Oxfam’s transformation of its own confederation, decolonizing its decision-making and strengthening its collective structure and policies. He has been widely recognized for his work on people-centric advocacy, governance accountability, social and economic equality, and citizen participation.

Prior to Oxfam, Behar was Executive Director of the National Foundation for India and Co-Chair of the Global Call to Action Against Poverty. He has also served as the Vice-Chair of the Board of CIVICUS and the Chair of Navsarjan (Ahmedabad) and President of Yuva in Mumbai. He currently serves on the boards of several other organizations, including the Global Fund for Community Foundation and the Norwegian Human Rights Fund.

Contact: Rachel Schaevitz, [email protected]

Oxfam Reaction to the UN State of Food Security and Nutrition Report 2024

In reaction to the UN’s 2024 edition of “The State of Food Security and Nutrition in the World” (SOFI) report, which showed that one out of 11 people in the world, and one out of every five in Africa, may have faced hunger in 2023, Eric Munoz, Oxfam’s food policy expert, said:

“Global hunger remains stuck at shamefully high levels, driven by many reasons that together become convenient excuses for our governments to avoid decisive action. We grow enough food to feed people everywhere in the world and there are solutions to eradicate this terrible scourge.

“Countries facing high levels of hunger tend to be poor, highly-indebted, even exploited. They are also the most vulnerable to climate-related and economic shocks. Nearly 28 million people in East Africa are severely hungry because of worsening floods and droughts, conflict and poverty, while Ethiopia, Kenya, Somalia and South Sudan struggle under a debt burden of $65 billion. They also need $7.49 billion in humanitarian assistance, but donors have to date met less than 20 percent of this. They are being short-changed at every turn.

“The UN today identifies a hole of trillions of dollars needed to end hunger.  Only bold political action can fill this gap. Private financing can be a partial solution, but runs the risk of increasing inequalities and sidelining local communities. More public funding is required especially into smallholder farmers in poorer countries and stronger social protection schemes, wide-scale debt relief, and for rich countries to meet their humanitarian and climate finance pledges.

“The world’s poorest people are paying the highest price of hunger. We need deeper, structural policy and social change to address all of the drivers of hunger, including economic injustice, climate change and conflict. We support Brazil’s efforts, as part of its G20 presidency, to form the new Global Alliance against Hunger and Poverty.”

Contact

Rachel Schaevitz, [email protected]  

Notes:

Former heads of state and government call on G20 leaders to back global deal to tax the ultra-rich

Close to 20 former heads of state and government of G20 and higher-income countries, including former Prime Minister of New Zealand Helen Clark, former President of Chile Michelle Bachelet, former Prime Minister of Sweden Stefan Löfven, former Prime Minister of Australia Julia Gilliard, former Prime Minister of France Dominique de Villepin and former President of Spain José Luis Rodríguez Zapatero, called on current G20 leaders —including US President Joe Biden, German Chancellor Olaf Scholz and UK Prime Minister Keir Starmer— to support a “new global deal to tax the world’s ultra-rich individuals” in an open letter published today.

Ensuring the ultra-rich pay their fair share “would reduce inequality and raise trillions of dollars necessary for investments in industrial policy and a just transition.”

The former leaders state in the letter that “Brazil’s G20 proposal underlines the opportunity to write a new story about taxation for the first time in a generation” at a time when “billionaires, globally, are paying a tax rate equivalent to less than 0.5 percent of their wealth.”

The Brazilian government, in its presidency of the G20, is championing a new global tax standard on taxing the ultra-rich. The letter by former heads of state and government of G20 countries comes alongside talks across G20 capitals to back the deal, and ahead of a meeting of G20 finance ministers
and central bankers in Rio de Janeiro, Brazil, on 25 July. Governments including Brazil, South Africa, France and Spain have already voiced their support. The leaders write: “rare is a proposal that asks us as former leaders to rally in unity —and that we recognize as politically possible. This, clearly, is one.”

Helen Clark, former Prime Minister of New Zealand and Member of Club de Madrid, said: “Brazil is to be commended for bringing the issue of a global tax standard on the world’s billionaires to the G20 table. This builds on an earlier G20 decision to support a global minimum tax of fifteen per cent on multinational companies. The latter initiative took years to come to fruition. Both initiatives build global cooperation to tackle tax avoidance.”

The letter, which was coordinated by Club de Madrid and Oxfam, warns that “the share of income of the top 1 percent of earners has risen by 45 percent over four decades while top tax rates on their incomes were cut by roughly a third.”

Note to editors:

Full open letter and signatories is available on Club Madrid’s site.  

For more information:

Rachel Schaevitz/ [email protected]

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

  • 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. 

Copyright © 2024 Oxfam Aotearoa.

Oxfam is a worldwide development organisation that mobilises the power of people against injustice. Oxfam Aotearoa is a registered charity with the New Zealand Charities Register (registration CC24641). Donations are tax refundable.

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