Rigged rules mean economic growth increasingly “winner takes all” for rich elites all over world, says OXFAM

Ottawa (21 Jan. 2014) – New research shows the concentration of wealth is even worse than we had thought. In a report released on January 20, Working for the Few shows that 85 of the richest people own the wealth of half of the world’s population. 

 

Published ahead of this week’s World Economic Forum in Davos, the report details the pernicious impact that widening inequality is having in both developed and developing countries, helping the richest undermine democratic processes and drive policies that promote their interests at the expense of everyone else. 

 

The report says that there is a growing global public awareness of this power-grab. Polls done for Oxfam in six countries (Brazil, India, South Africa, Spain, the UK and U.S.) show that most people questioned in all those countries believe that laws are skewed in favor of the rich.

 

Tax havens, financial deregulation, austerity measures for the poor and middle class but not the rich contribute to income inequality

 

The report says:

 

Globally, the richest individuals and companies hide trillions of dollars away from the tax man in a web of tax havens around the world. It is estimated that $21 trillion is held unrecorded and off-shore

In the US, years of financial deregulation directly correlates to the increase in the income share of the top one per cent which is now at its highest level since the eve of the Great Depression

In India, the number of billionaires increased tenfold in the past decade, aided by a highly regressive tax structure and the wealthy exploiting their government connections, while spending on the poorest remains remarkably low

In Europe, austerity has been imposed on the poor and middle classes under huge pressure from financial markets whose wealthy investors have benefited from state bailouts of financial institutions

In Africa, global corporations – particularly those in extractive industries - exploit their influence to avoid taxes and royalties reducing the resources available to governments to fight poverty.

Oxfam joins the call for tax fairness, public services, and living wage for workers around the world

 

Oxfam is calling on those gathered at the World Economic Forum to pledge to:

 

Support progressive taxation and not to dodge their own taxes;

Refrain from using their wealth to seek political favors that undermine the democratic will of their fellow citizens; 

Make public all the investments in companies and trusts for which they are the ultimate beneficial owners; 

Challenge governments to use tax revenue to provide universal healthcare, education and social protection for citizens; 

Demand a living wage in all companies they own or control

Oxfam delegates will also challenge other members of the economic elite to join them in these pledges. 

 

More information: 

 

Working for the Few

 

NUPGE

 

The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 340,000 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