The assets of all billionaires rose by $ 2.5 billion (€ 2.2 billion) in the past year. Oxfam comes to this conclusion in his recent report „Public Good or Private Wealth.“ Social inequality has thus continued to rise worldwide. Because the poorer half of the world’s population suffered losses of eleven percent, or $ 500 million a day, according to the study.
Oxfam, an association of several aid organizations, traditionally presents its figures on the gap between the rich and the poor before the start of the annual World Economic Forum (WEF) in Davos, Switzerland. Since the financial crisis about ten years ago, the number of billionaires worldwide has almost doubled. Twenty-six billionaires own as much as the poorer half of the world’s population, criticized Oxfam director Winnie Byanyima.
Although Oxfam praises the decline of people living in extreme poverty since 1990, this trend is weakening. As before, 736 million people lived on $ 1.90 per day per person – the World Bank’s definition of extreme poverty. The pace at which extreme poverty is decreasing has halved since 2013. In parts of Africa, this had even risen again. Oxfam relies on information from the World Bank. In addition, nearly half of the world’s population, 3.4 billion people, still lives on a maximum of $ 5.50 per day per person.
Biggest wealth inequality in Germany
Ethiopia’s health budget represents about one percent of the assets of Amazon boss Jeff Bezos, currently the world’s richest man, with $ 112 billion, Oxfam draws a comparison. The largest wealth inequality in the international comparison prevails, according to study in Germany.
The German billionaires were able to increase their assets by 20 percent – even more than the global average for billionaires with a plus of twelve percent. The richest percent of Germans had as much as the 87 poorer percent of the German population. In 2017, every fifth child was considered poor. At 15.8 percent, according to Oxfam, the poverty rate is at its highest level since 1996.
Women more affected than men
Social inequality affects women far more than men. According to Oxfam, men have 50 percent more wealth than women. Compared globally, they received 23 per cent lower salaries, but paid $ 10 trillion in unpaid caregiving and care due to health and education deficiencies.
Accordingly, public education, health and social protection services could help reduce inequality, the organization emphasized. In addition, Oxfam calls for a greater burden on wealthy individuals, corporations, inheritances and high incomes.
Criticism of calculation method
In its annual report, the capitalism-critical aid organization Oxfam relies mainly on data from the Swiss bank Credit Suisse and asset estimates of the US magazine „Forbes“. Comparing these sources of poverty and wealth has been criticized by some experts, such as the market-liberal Institute for Economic Affairs (IEA) in London. Moreover, according to the IEA, reducing the wealth of wealth would not lead to redistribution but to its destruction.
There is also skepticism about the calculation methods for the very poor population. In its report, Credit Suisse defines assets as the sum of private financial assets, provisions and property such as real estate – but less debt. From this the definition of poverty derives, according to critics, is problematic. For a university graduate with debts from a student loan would be poorer, according to Credit Suisse calculation, as a debt-free homeless, analyzed the dpa.
Oxfam critics are convinced that the distribution of assets has a strong imbalance. Oxfam argues that even if the poorest one-tenth of the world’s population were not counted, that would not change the basic statement of prevailing social inequality.
Trump, May and Macron are not coming to Davos
The meeting in Davos starts on Tuesday. Despite prominent cancellations, around 3,000 participants from the international political and business elite are expected. While German Chancellor Angela Merkel and Brazilian President Jair Bolsonaro have announced their arrival, British Prime Minister Theresa May quit the Brexit dispute and French President Emmanuel Macron over the „Yellow West“ protests. Even US President Donald Trump will not come to Davos due to the budget dispute.
