Rebecca Manzi Oxfam report highlights exponential rise in global economic inequality, with the richest 1% of the population owning 43% of global financial assets
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The latest Oxfam report, released during the World Economic Forum in Davos, highlights a dramatic increase in global economic inequality. Since 2020, the wealth of the world’s five richest men has more than doubled, rising from $405 billion to $869 billion. In contrast, the poorest 60% of the global population has seen their wealth decrease.
If these trends continue, the world could see its first trillionaire within a decade, while poverty might not be eradicated for another 229 years. Aleema Shivji, Oxfam’s interim CEO, emphasized how government policies often favor this skewed wealth concentration, leaving hundreds of millions of people in poverty.
Disparities in wealth distribution
Wealth X data shows that the richest 1% owns 43% of global financial assets.
In 2023, 148 of the world’s largest companies recorded profits of approximately $1.8 trillion, marking a 52.5% increase over the average profits from 2018 to 2021. Of these profits, 82% were distributed to shareholders through dividends or stock buybacks.
Calls for progressive wealth taxes
Oxfam highlighted that this growing inequality is closely linked to the power of multinational corporations, which exacerbate gender, racial, and economic disparities. The report suggests that a progressive wealth tax on multi-millionaires and billionaires could significantly reduce economic inequality and provide essential revenue for public investments. For example, in the European Union, a progressive wealth tax could raise €286.5 billion ($314 billion) annually, covering 40% of the EU’s recovery fund.
Source: Oxfam
