Oxfam report: five richest men in the world double fortunes as five billion people face deepening poverty in "decade of division"

As the World Economic Forum kicked off in Davos, Switzerland, Oxfam disclosed that the combined wealth of the world’s five richest individuals has more than doubled since 2020, experiencing a growth of 114%.

This surge, translating to a rate of $14 million per hour, has elevated their collective wealth from $405 billion to $869 billion. Simultaneously, nearly five billion people have become poorer, leading Oxfam to characterize the current era as a "decade of division".

The report, titled "Inequality Inc." and released on January 15, predicts the possibility of the world witnessing its first trillionaire within the next decade. However, it also underscores a sobering reality: the eradication of poverty, given current trends, would take 229 years.

Oxfam’s analysis delves into the corporate realm, revealing that seven out of ten of the world’s largest corporations are led by billionaires, amassing a total worth of $10.2 trillion—surpassing the combined GDPs of Africa and Latin America.

Beyond wealth accumulation, the report notes an associated concentration of power, with affluent nations in the Global North, representing only 21% of the global population, claiming 69% of global wealth and harboring 74% of the world’s billionaire wealth.

Corporate profits have reached unprecedented levels, with 148 major corporations registering a total net profit of $1.8 trillion in the year leading up to June 2023—a 52 percent increase compared to the 2018-2021 average. Remarkably, wealthy shareholders took hold of $82 out of every $100 of profit.

Oxfam’s report also sheds light on the challenging conditions faced by workers globally, working longer hours for meager wages in precarious and unsafe environments. The wages of nearly 800 million individuals failed to keep pace with inflation, resulting in a collective loss of $1.5 trillion over the last two years. The report indicates that only 0.4 percent of major corporations are committed to paying workers a living wage.

In response, Oxfam calls for a reevaluation of existing paradigms. The report advocates for state revitalization, endorsing universal healthcare and education, and exploring public delivery of goods across various sectors. Additionally, Oxfam suggests measures to rein in corporate power, such as breaking up monopolies, legislating for living wages, capping CEO pay, and introducing new taxes on the ultra-rich and corporations.

Author: Marina Vanni