21st January, 2014
Almost half of the world’s wealth goes to the richest one per cent – just 85 people, according to a new report released by Oxfam ahead of this week’s meeting of G20 leaders in Davos.
Dr Helen Szoke, chief executive of Oxfam Australia, says the report – Working for the Few – shows that extreme economic inequality was rapidly increasing in most countries.
"It’s staggering that in the 21st century, half of the world’s population owns no more than a tiny elite whose numbers could all sit comfortably in a single train carriage".
Dr Szoke says that while in both developed and developing countries, the rich and their children are recipients of the lowest tax rates, the best health and education and the "opportunity to influence", the impact of extreme inequality is "most keenly felt" in developing countries.
"But such inequality is not inevitable, and it can and must be reversed quickly."
The report also shows that globally the richest individuals and companies hide trillions of dollars in tax havens, estimating that as much as $21 trillion ($US18.5 trillion) is held unrecorded and offshore.
Urging Australia and other countries to address the issue of tax avoidance and evasion, Oxfam says the use of tax havens leads to developing countries missing out on important revenues to combat poverty and to drive economic growth.
Dr Szoke says it’s estimated that between 2008 and 2010, sub-Saharan Africa lost on average $72 billion ($US63.4 billion) a year – more than twice it received in aid – through the use of tax havens.
Oxfam has called upon Australia to follow Canada, the US and Europe in requiring Australian mining and energy companies to disclose payments to governments in countries where they operate.
"This would help stamp out corruption and help people in poor countries get a fair share of their natural resource wealth, which they can use to fund essential services like health and education,” Dr Szoke says.
“Tony Abbott is in a prime position to help reduce extreme inequality and poverty globally as Australia prepares to host the leaders of G20 nations this year.”
– DAVID ADAMS
