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"We're facing a reality where 62 people have more wealth than the rest of the world combined and one of the biggest ways these people get, and stay, rich is by avoiding paying taxes." — James Clancy, NUPGE National President
Ottawa (20 Jan. 2016) — Each year more than 2,500 wealthy business people, government officials, international organizations, academics and non-governmental groups gather in Davos-Klosters, Switzerland, at the World Economic Forum (WEF) to discuss world issues.
Income inequality on the radar again at Davos meeting
It can be an important opportunity for non-governmental organizations to bring the most pressing issues forward to be addressed on an international scale and it can be an opportunity to challenge decision makers to make commitments to improving the lives of the poorest around the world.
In 2015, a major focus of the meeting was rising income inequality around the world. The WEF recognized that the growing divide is one of the biggest challenges of our time. And yet, while everyone seemed to agree that "this is a universal challenge that the whole world must address," the meeting ended with no common solution or action plan to try to counter the trend.
$7.6 trillion hidden in tax havens
Now, in advance of the 2016 meeting, Oxfam has published a report that reinforces how severe income disparity has become. The report, An Economy for the 1%, points out that at the moment 62 people control more wealth than the rest of the world combined. This wealth is amassed through the "global network of tax havens [that] enables the richest individuals to hide $7.6 trillion."
Over the past five years, the wealth of those 62 people — 53 of whom are men — has risen 44 per cent, or more than half a trillion dollars. The wealth of the bottom half has fallen by more than a trillion.
"Far from trickling down, income and wealth are instead being sucked upwards at an alarming rate," the Oxfam report says.
Must have a modern industrial strategy that puts people and the environment at the centre
This year's theme is Mastering the Fourth Industrial Revolution, focusing on how advances in technologies are, and will be, influencing our political, social and economic systems.
There is deep concern that "the speed, scale and systemic nature of this transformation has the potential to disrupt all sectors and call into question the essence of human nature and identity. The purpose of our Meeting this year is to build a shared understanding of this change, which is essential if we are to shape our collective future in a way that reflects ultimately that the human being should be at the centre,” said Klaus Schwab, Founder and Executive Chairman of the World Economic Forum.
"It may appear on the face of it that we have a lot in common with the folks at the Davos meeting," said James Clancy, National President of the National Union of Public and General Employees (NUPGE). "since our prescription for tackling income inequality is to create a modern industrial strategy that puts people and the environment at the heart of our actions. But that's not the case."
Address income inequality means addressing tax fairness
"The first step our governments need to take is to address tax fairness so that we can maintain and improve our quality public services, create good jobs and strengthen labour rights," he said.
"We're facing a reality where 62 people have more wealth than the rest of the world combined and one of the biggest ways these people get, and stay, rich is by avoiding paying taxes, Clancy said.
"It's our expectaction, after all the talk during the federal election about reducing inequality, that when the Prime Minister attends the WEF, he will reaffirm Canada's commitment to reducing income inequality and announce concrete measures that will be the first step along that path. Cracking down on tax havens, instead of just talking about them, would be a good place to start."
More information:
Oxfam report: An Economy for the 1%
NUPGE
The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 360,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. NUPGE