Just 8 men own same wealth as half the world, says new Oxfam report

Eight men own the same wealth as the 3.6 billion people who make up the poorest half of humanity, according to a new report by Oxfam. Here at home, just 2 people own the same wealth as the poorest 30% of Canadians.

Oxfam's report, ‘An economy for the 99 percent’, published to mark the World Economic Forum’s annual meeting of political and business leaders in Davos, Switzerland, shows that the gap between rich and poor is far greater than had been feared. New and better data on the distribution of global wealth – particularly in India and China – indicates that the poorest half of the world also has less wealth than had been previously thought.  

It details how big business and the super-rich are fuelling the inequality crisis by driving down wages, using their power to influence politics, and dodging taxes. It calls for a fundamental change in the way we manage our economies so that they work for all people, and not just a fortunate few. It calls for a human economy where women are no longer rewarded with poverty wages, unequal pay, and a disproportionate responsibility for unpaid care work.

As Prime Minister Trudeau heads across the country this week, Oxfam is encouraging Canadians to tell the government that they want an economy that works for everyone, not just the wealthy elite.

Lauren Ravon, Director of Policy and Campaigns for Oxfam Canada, said:

"The Government has repeatedly voiced its commitment to shared economic prosperity for all Canadians. As Trudeau meets with Canadians in communities across the country over the next week, we urge him to keep issues of gender inequality and poverty top of mind. Women make up a huge proportion of people living in poverty, both here in Canada and around the world. They contribute significantly to the economy but are getting short-changed by economic growth."

As Trudeau meets with Canadians in communities across the country over the next week, we urge him to keep issues of gender inequality and poverty top of mind. Women make up a huge proportion of people living in poverty, both here in Canada and around the world. They contribute significantly to the economy but are getting short-changed by economic growth.

Oxfam’s report shows how our broken economies are funnelling wealth to rich elites at the expense of the poorest in society – the majority of whom are women. The richest are accumulating wealth at such an astonishing rate that the world could see its first trillionaire in just 25 years. To put this figure in perspective – you would need to spend $1 million every day for 2738 years to spend $1 trillion.

Around the world, women are over represented in low wage sectors, face high levels of discrimination in the work place, and take on a disproportionate amount of unpaid care work – they therefore find themselves at the bottom of the economic pile. At current trends it will take 170 years for women globally to be paid the same as men. In Canada, women are paid less than men in over 90% of jobs tracked by Statistics Canada. There is clear evidence that a new economic model is needed if women are to attain equality.

Oxfam interviewed women working in a garment factory in Vietnam who work 12 hours a day, 6 days a week and still struggle to get by on the $1 an hour they earn producing clothes for some of the world’s biggest fashion brands. The CEOs of these companies are some of the highest paid people in the world.

Ravon added: "The Government of Canada can take a first step to close the inequality gap by making a Federal Budget that works for women in 2017. A feminist federal budget would prioritize progressive taxation, increase the proportion of total government spending on public services and social protection to lift people out of poverty, encourage living wages, close the gender pay gap, and increase the international aid budget to make our global commitments to women’s rights a reality.”

Public anger with inequality has been creating political shockwaves across the globe. Inequality has been cited as a significant factor in the election of Donald Trump in the US, the election of President Duerte in the Philippines, and Brexit in the UK.     

Winnie Byanyima, Executive Director of Oxfam International, who will be attending the Forum in Davos, said: 

“Inequality is trapping hundreds of millions in poverty; their wages are stagnating yet corporate bosses take home million dollar bonuses; their health and education services are cut while corporations and the super-rich dodge their taxes; their voices are ignored as governments sing to the tune of big business and a wealthy elite.”

Seven out of 10 people live in a country that has seen a rise in inequality in the last 30 years.  Between 1988 and 2011 the incomes of the poorest 10 percent increased by just $65, while the incomes of the richest 1 percent grew by $11,800 – 182 times as much. Over the same time period in Canada, the increase in incomes of the poorest 10% accounted for just 3% of the total income growth, while the increase in incomes of the richest 10% accounted for 29%. Oxfam’s blueprint for a more human economy includes the following approaches: 

Governments must help to dismantle the barriers to women’s economic progress such as access to education and the unfair burden of unpaid care work. In Canada, Oxfam is focusing its attention on the Federal Budget 2017, and calling for decisions and investments that make work paid, equal and valued for women.

Governments should work together to ensure workers are paid a living wage and put an end to the gender wage gap.

Governments should put a stop to tax dodging and the race to the bottom on corporate tax, and should increase taxes on both wealth and high incomes to ensure a more level playing field and to generate funds needed to invest in public services, education and job creation.

The World Economic Forum has responsive and responsible leadership as its key theme this year. Business leaders can also play their part in building a human economy, starting by committing to pay their fair share of tax and by ensuring their businesses pay a living wage and pay women equally.  Canadians can also join Oxfam’s campaign to demand an economy that works for everyone at www.shortchanged.ca

-30-