Oxfam International has released its annual report on global wealth inequality, coinciding with the start of the World Economic Forum (WEF) at Davos. The report, titled Takers Not Makers, reveals alarming trends: billionaire wealth soared by $2 trillion, growing three times faster than the previous year. With these findings, Oxfam highlights the emergence of what it describes as an 'aristocratic oligarchy.'
According to Oxfam, the number of billionaires increased to 2,769, with 204 new billionaires minted throughout the year. This means nearly four new billionaires emerged each week. The combined wealth of these individuals now stands at $15 trillion, reflecting the second-largest annual increase since records began.
Oxfam's Executive Director, Amitabh Behar, noted, "The capture of our global economy by a privileged few has reached heights once considered unimaginable. The failure to stop billionaires is now spawning soon-to-be-trillionaires." He pointed to the fact the wealthiest 10 individuals saw their fortunes growing by $100 million each day on average.
The report paints a stark picture: 44% of the global population survives on less than $6.85 per day, and the rate of poverty has barely changed since the 1990s. Behar asserts, "We present this report as a stark wake-up call: ordinary people are being crushed by the enormous wealth of a tiny few." This economic disparity is exacerbated by inheritance and monopoly power, with the report indicating at least 60% of billionaire wealth derives from these sources.
At the heart of the report is concern over how these trends correlate with political developments, particularly the policies of United States President Donald Trump. Oxfam alleges Trump's election and subsequent tax cuts disproportionately benefit the wealthy. "The crown jewel of this oligarchy is a billionaire president, backed and bought by the world's richest man, Elon Musk, running the world's largest economy," Behar stated.
Looking forward, Oxfam forecasts at least five trillionaires could emerge within the next decade, up from their previous estimate of just one. Their call for governments includes the necessity for higher taxes on the rich, breaking up monopolies, and ensuring living wages for workers through corporate regulation.
The World Economic Forum, attended by nearly 3,000 leaders from business, government, and civil society, provides a platform for discussion of these issues. Protests have also erupted at Davos, where demonstrators have rallied for wealth redistribution, holding banners demanding to "tax the rich" and denouncing the existing economic structures.
Oxfam reiterates its demand for significant changes to the economic system, arguing for policies to prevent the richest from shaping economic policies to their own advantage. These changes, they argue, are key to reversing current trends and addressing what they describe as the erosion of democracy itself.
Notably, Behar emphasized the situation we face: if left unchecked, this oligarchy will lead to the "biggest transfer of generational wealth in human history." The call to action is clear, with Oxfam urging governments to take bold steps to implement measures against growing inequality.
The findings presented in the Takers Not Makers report resonate beyond the boardroom discussions at Davos, highlighting the growing discontent among ordinary citizens and the potential for civil unrest if wealth inequality continues to rise. The stark divide between those who benefit from conventional wealth generation versus those who are left behind can no longer be ignored.
With the current economic climate presenting concerning disparities, Oxfam's report serves as not just documentation of current inequalities but also as a rallying cry for systemic change to avert the worsening of this situation as more billionaires are created.