The world is facing an alarming trend of growing inequalities, with the possibility of witnessing the first trillionaire within a decade, according to anti-poverty organization Oxfam International. As political and business leaders gather in Davos, Switzerland, for the annual World Economic Forum meeting, Oxfam released its annual assessment of global inequalities, highlighting the significant wealth gap that has been 'supercharged' by the COVID-19 pandemic.
Oxfam's report reveals that the fortunes of the five richest individuals have skyrocketed by 114% in real terms since 2020. These billionaires include Elon Musk, CEO of Tesla; Bernard Arnault and his family, who own luxury company LVMH; Jeff Bezos, the founder of Amazon; Larry Ellison, the founder of Oracle; and investment guru Warren Buffett. The exponential growth in their wealth has occurred while nearly 5 billion people across the world have slipped into poverty.
Amitabh Behar, interim executive director of Oxfam, expressed his concern about the deepening divide between the wealthy and the rest of the population. 'We have the top five billionaires doubling their wealth, while almost 5 billion people have become poorer,' he stated. Furthermore, he projected the possibility of witnessing the first trillionaire in the next ten years, highlighting the stark contrast between extreme wealth and the fight against poverty.
To put the potential magnitude of a trillionaire into perspective, Oxfam noted that this individual would hold the same value as the oil-rich nation of Saudi Arabia. Currently, Elon Musk tops the list of the richest individuals globally, with a personal fortune of nearly $250 billion, according to Oxfam's data sourced from Forbes.
In contrast to the staggering wealth accumulation by a few individuals, the pandemic has led to increased impoverishment for billions. Oxfam's report states that almost 5 billion people have been pushed into poverty since the outbreak of COVID-19. Many developing nations struggled to provide adequate financial support to their citizens during lockdowns, exacerbating the already existing inequalities.
The report also emphasizes that the poorest countries have been disproportionately impacted by events such as Russia's invasion of Ukraine in February 2022, which caused a surge in energy and food prices. These nations lack the resources and support to mitigate the effects of such events, further perpetuating the cycle of poverty.
Oxfam sees the upcoming Group of 20 (G20) summit, to be hosted by Brazil, as an opportunity to address these inequalities. Brazilian President Luiz Inacio Lula da Silva has placed issues concerning the developing world at the center of the G20 agenda, making it a crucial moment for Oxfam to raise awareness about the pressing need for action.
The organization proposes several measures as part of an 'inequality-busting' agenda, including permanent taxation of the wealthiest individuals in each country, stricter taxation on large corporations, and intensified efforts to combat tax avoidance.
Oxfam's calculations reveal that the total wealth of the top five billionaires, based on Forbes data from November 2023, amounted to $869 billion. This represents a significant increase from $340 billion in March 2020, a nominal rise of 155%. In contrast, the bottom 60% of the global population has experienced a steady decline in wealth, as evidenced by data from the UBS Global Wealth Report 2023 and the Credit Suisse Global Wealth Databook 2019.
The findings of Oxfam's report serve as a stark reminder of the urgent need to address global inequalities and strive for a more equitable distribution of wealth worldwide. As leaders convene at Davos, the challenges posed by extreme wealth disparities demand immediate attention and action to prevent a further deepening of the divide between the super-rich and the rest of society.
