A new, and rather disturbing, Oxfam report, titled, 'Inequality Inc.,' has exposed the unprecedented surge in the fortunes of the world's five richest individuals, who have more than doubled their wealth from $405 billion to $869 billion since 2020 — at an alarming rate of $14 million per hour. Meanwhile, nearly five billion people have plunged into poverty.
The report, released as business elites convene in Davos, Switzerland, painted a grim picture of corporate power, revealing that seven out of 10 of the world's largest corporations are helmed by billionaires, with a combined net worth of $10.2 trillion — surpassing the GDPs of all African and Latin American nations.
Oxfam International's interim Executive Director, Amitabh Behar commented on the disturbing trend, stating, "We're witnessing the beginnings of a decade of division, with billions of people shouldering the economic shockwaves of pandemic, inflation, and war, while billionaires' fortunes boom. This inequality is no accident; the billionaire class is ensuring corporations deliver more wealth to them at the expense of everyone else."
The report emphasised that the world is on track to produce its first trillionaire within a decade, but the eradication of poverty remains a distant prospect —projected to take another 229 years if current trends persist.
Highlighting the impact of runaway corporate power, the report underscored how large firms are set to break profit records in 2023. The top 148 corporations raked in $1.8 trillion in total net profits, a staggering 52% increase compared to the period from 2018 to 2021. And for every $100 of profit, $82 went to wealthy shareholders.
The report also delved into the disproportionate ownership of wealth, revealing that despite representing only 21% of the global population, rich countries in the Global North own 69% of global wealth and house 74% of the world's billionaire wealth.
Bernard Arnault is the world’s second richest man, who presides over the luxury goods empire LVMH, which has been fined by France's anti-trust body. He also owns France’s biggest media outlet, Les Échos, as well as Le Parisien. Aliko Dangote, Africa’s richest person, holds a "near-monopoly" on cement in Nigeria. His empire’s expansion into oil has raised concerns about a new private monopoly.
Jeff Bezos' fortune of $167.4 billion increased by $32.7 billion since the beginning of the decade. The US government has sued Amazon, the source of Bezos’ fortune, for wielding its "monopoly power" to hike prices, degrade service for shoppers ,and stifle competition.
Oxfam called for urgent government intervention to address the widening wealth gap, with recommendations, including revitalising the state to ensure universal healthcare and education, reining in corporate power through measures such as breaking up monopolies and legislating for living wages and reinventing business models to prioritise equality.
"Public power can rein in runaway corporate power and inequality — shaping the market to be fairer and free from billionaire control. Governments must intervene to break up monopolies, empower workers, tax massive corporate profits, and invest in a new era of public goods and services," Amitabh Behar added.
(Edited by : Shoma Bhattacharjee)
First Published: Jan 15, 2024 5:48 PM IST
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