Oxfam Report Highlights Widening Gap between Rich and Poor
Oxfam's latest report, released in January 2025, sheds light on the alarming growth of wealth inequality worldwide. By comparing the cumulative wealth of billionaires between 2023 and 2024, the report reveals a staggering tripling of wealth. Meanwhile, conflicts, poverty, hunger, and inequality are on the rise. The report also points to climate change and the victory of Trump in November 2024, celebrated by billionaires, as contributing factors.
Poverty Persists
According to the World Bank, if no efforts are made to reduce inequality, poverty will not be eradicated for another century. Despite a general decline in poverty worldwide, the number of people living on less than $6.85 a day, as defined by the World Bank, has remained unchanged since 1990 and stands at approximately 3.6 billion, equivalent to 44% of the global population.
Wealth Disparity
On the other side of the coin, the wealthiest 1% hold a comparable share of wealth (45%). Data up to October 2023 reveals that one in ten women worldwide faces extreme poverty (living on less than $2.15 per day in purchasing power parity); women account for 24.3 million additional cases compared to men in this situation.
The Rise of a New Oligarchy
Oxfam's report highlights that most billionaires have inherited their fortunes rather than earning them, undermining the notion of merit-based wealth acquisition. Two key aspects are emphasized:
- The Emergence of a New Oligarchy: A phenomenal wealth gap has emerged, driven by inheritance, complicity, and monopolistic power. Without protective measures, we may witness an unprecedented intergenerational transfer of wealth, largely escaping taxation and unrelated to merit.
- Colonialism's Legacy: The report argues that colonialism is not a bygone era of violent resource extraction but continues to generate extreme disparities today. Capital flows primarily benefit the wealthy, particularly in Northern countries, perpetuating a form of "billionaire colonialism."
Historical Inequality
Deep-seated inequalities between the richest individuals and the rest of society, both within and between countries, are a legacy of historical colonialism. The gap between the rich and the rest of the world is monumental. In 1820, when data collection began, the income of the top 10% of the global population was 18 times higher than that of the bottom 50%; by 2020, it had increased to 38 times higher.
Economic Inequality Reflected in Other Measures
These economic inequalities are reflected in various other measures of progress and well-being. Nationally, colonialism is responsible for shocking levels of inequality in Southern countries. The World Bank defines these countries as having high levels of inequality, with the top 1% of Africa, Asia, and the Middle East holding 20% of their region's total income, nearly twice the share of the top 1% in Europe.
