Oxfam Raises Concerns On Increasing Inequality In Wealth

Oxfam Raises Concerns On Increasing Inequality In Wealth

A report from Oxfam revealed that the eighty-five richest persons in the world have enough wealth equal to the wealth of half of the poorest people in the world.

The report was published prior to the World Economic Forum that will be held in Davos, Switzerland. According to Oxfam executive director Winnie Byanyima, the increasing inequality results to a vicious circle where only a few people have power and wealth while the rest fight over the leftovers.

The group said tax rates for the richest people in the world have declined in around thirty countries since the later part of the 1970s.

The report also indicated that around $21 trillion of the wealth are hidden in offshore accounts and out of the reach of governments. The group estimated around $110 trillion of the wealth in the world is held by around one percent of the world’s population. Around $1.7 trillion of this amount is held by the eighty-five richest people in the world.

Among these richest individuals are Carlos Slim Helu, Bill Gates and Warren Buffet. The net wealth of Helu is reportedly around $73 billion while Gates and Buffett have $67 billion and $53.5 billion respectively.

The group added that the increased concentration of resources into a small number of people may pose a threat to economic and political systems. Social tensions and danger of a breakdown in society will intensify when political and economic power will continue to separate people.

The World Economic Forum brings together prominent individuals in business, politics, finance and international trade. It has also raised concerns on the increasing inequality in the world.

Oxfam is appealing for support for progressive taxation from the group as well as challenged governments to utilize tax revenue in providing education, social protection and universal health care.

Posted by James Fried on Wednesday January 22 2014, 6:15 AM EST. Ref: CBC. Link. All trademarks acknowledged. Filed under Featured News, Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0