OXFAM INTERNATIONAL REPORT: RISING GLOBAL INEQUALITY
Oxfam International’s report, “Takers Not Makers: The Unjust Poverty and Unearned Wealth of Colonialism,” highlights the increasing wealth gap worldwide. While billionaires’ fortunes continue to grow, the poor face ongoing challenges. The report attributes this widening inequality to historical colonial exploitation.
About Oxfam International
- Established in 1995, Oxfam is a global confederation of NGOs.
- Operates in 79 countries, including India.
- Works on poverty reduction, emergency relief, and advocacy for long-term change.
- Women’s rights are central to its mission.
Key Findings of the Report
Billionaire Wealth Growth:
- Billionaire wealth surged by USD 2 trillion in 2024, with 204 new billionaires added.
- In 2024, their wealth grew three times faster than in 2023.
- On average, billionaire wealth increased by USD 2 million daily.
Rising Inequality:
- The wealth gap has significantly widened since 1990, with poverty levels remaining stagnant.
- The wealthiest 1% hold 45% of global wealth.
- Around 3.6 billion people live on less than USD 6.85 per day (PPP), and 1 in 10 women globally lives in extreme poverty.
- In 1820, the richest 10% had 18 times more wealth than the poorest 50%; by 2020, this disparity grew to 38 times.
- Life expectancy in Africa is over 15 years shorter than in Europe, reflecting inequality.
Colonial Legacy and Power Imbalances:
- Colonialism continues to influence global economic disparities.
- Wealth transfers from the Global South to the Global North amount to USD 30 million per hour.
- Between 1765 and 1900, the UK extracted USD 64.82 trillion from India, with USD 33.8 trillion benefiting the wealthiest 10%.
- Global North countries dominate key institutions like the IMF, World Bank, and UN Security Council.
- Education inequality persists, with 39% of global leaders in 2017 educated in the UK, USA, or France.
Inheritance and Wealth Accumulation:
- In 2023, more billionaires emerged from inheritance than entrepreneurship.
- Nearly 60% of billionaire wealth stems from inheritance, monopoly, or cronyism.
Recommendations for Reducing Inequality
- Strengthen South-South cooperation to address colonial-era imbalances.
- Implement progressive taxation to reduce extreme wealth concentration.
- Set global and national targets to reduce inequality and uplift the poor.
About Global Inequality
- Inequality refers to the uneven distribution of resources, opportunities, and power among the world’s 8 billion people.
- It worsens poverty and limits well-being.
Historical Context:
- In the early 1800s, wealth disparity was lower, but the Industrial Revolution widened gaps, benefiting Western countries disproportionately.
Income Disparities Between Countries:
- Since the 1990s, economic growth in countries like China has reduced income inequality between nations.
- Despite progress, the average income in North America remains 16 times higher than in sub-Saharan Africa.
Income Disparities Within Countries:
- Inequality within nations has grown, affecting 71% of the global population.
Causes of Inequality
Social Factors:
- Discrimination based on gender, race, and ethnicity perpetuates inequality.
- Women contribute 12.5 billion hours of unpaid work daily.
Economic Factors:
- Economic growth benefits the wealthy disproportionately.
- Wealth is often inherited or accumulated through crony capitalism.
- Indirect taxes and weak social welfare systems worsen inequality.
Emerging Challenges:
- Climate change disproportionately affects the poor.
- Lack of access to digital technology can deepen inequality.
Impacts of Inequality
- Affects access to healthcare, education, and social services.
- Limits economic mobility and can lead to social unrest.
- High inequality fuels nationalism and social divisions.
Inequality Trends in India
Gini Coefficient:
- India’s Gini coefficient in 2023 was 0.410, indicating rising inequality since 1955 (0.371).
- The top 10% own 77% of national wealth, while the richest 1% hold 53%.
Income Distribution:
- The top 10% control 57% of national income, while the bottom 50% have only 13%.
Factors Driving Inequality in India:
- The COVID-19 pandemic worsened wealth gaps.
- Indirect taxes disproportionately burden the poor.
- Limited access to quality education and healthcare restricts economic mobility.
- Economic reforms have benefited select sectors while neglecting agriculture and small businesses.
India’s Efforts to Reduce Inequality
- Employment Schemes: MGNREGA, PMEGP, DAY-NULM
- Healthcare Initiatives: National Health Mission, Ayushman Bharat
- Financial Inclusion: Jan Dhan Yojana, Mudra Yojana
- Education Programs: Samagra Shiksha Scheme 2.0
- Infrastructure Development: PM Gram Sadak Yojana
Way Forward
Inclusive Policies:
- Enforce constitutional equality provisions.
- Encourage corporate social responsibility initiatives.
- Align with SDG 10 for inclusive development.
Progressive Taxation:
- Introduce wealth taxes on billionaires.
- Use tax revenue to improve public services.
- Promote financial transparency to prevent tax evasion.
Addressing Colonial Legacies:
- Provide reparations to affected countries.
- Reform global institutions for equitable representation.
Gender Equality:
- Recognize and compensate women’s unpaid labor.
- Improve women’s access to education, credit, and healthcare.
Environmental Justice:
- Wealthy nations should finance climate adaptation efforts in developing countries.
Mains Question:
- “Discuss the key findings of Oxfam International’s report on global inequality and analyze the impact of historical colonialism in shaping present-day economic disparities. (250 WORDS)”