PHM-Exch> Global Poverty Grows as Super-Rich Get Richer Faster
Claudio Schuftan
cschuftan at phmovement.org
Wed Aug 28 22:26:48 PDT 2024
From: Jomo from Challenging Development+ <jomodevplus at substack.com>
Oxfam expects the world’s first trillionaire within a decade and poverty to
end in 229 years! The wealth of the five richest men has more than doubled
from 2020, as 4.8 billion people became poorer.
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for more
Global Poverty Grows as Super-Rich Get Richer Faster
<https://substack.com/app-link/post?publication_id=244813&post_id=148216642&utm_source=post-email-title&utm_campaign=email-post-title&isFreemail=true&r=1a0gij&token=eyJ1c2VyX2lkIjo3NzI4MzczOSwicG9zdF9pZCI6MTQ4MjE2NjQyLCJpYXQiOjE3MjQ4MzMzMzUsImV4cCI6MTcyNzQyNTMzNSwiaXNzIjoicHViLTI0NDgxMyIsInN1YiI6InBvc3QtcmVhY3Rpb24ifQ.2ntCReO9hs_5rpXPzHwYkSyGz9GGyuxCWosSiJWDG4g>Oxfam
expects the world’s first trillionaire within a decade and poverty to end
in 229 years! The wealth of the five richest men has more than doubled from
2020, as 4.8 billion people became poorer.
Jomo <https://substack.com/@jomomydevplus>
Aug 28
<https://substack.com/@jomomydevplus>
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*Global Poverty Grows as Super-Rich Get Richer Faster*
By Jomo Kwame Sundaram
<https://substack.com/redirect/fdf5ed8f-b684-4881-a6b8-6112f7442ccc?j=eyJ1IjoiMWEwZ2lqIn0.PS59_znKHzlOwVUkakEgDIZc_vNuaWsHL-9LkCsoC2Q>
and Siti Maisarah Zainurin
<https://substack.com/redirect/62a63b06-0501-4ddf-a54a-17d1fc542bee?j=eyJ1IjoiMWEwZ2lqIn0.PS59_znKHzlOwVUkakEgDIZc_vNuaWsHL-9LkCsoC2Q>
KUALA LUMPUR, Malaysia, Aug 28 2024 (IPS) - Oxfam
<https://substack.com/redirect/cf50bf2d-72ee-4d00-9539-bd269f756bee?j=eyJ1IjoiMWEwZ2lqIn0.PS59_znKHzlOwVUkakEgDIZc_vNuaWsHL-9LkCsoC2Q>
expects
the world’s first trillionaire within a decade and poverty to end in 229
years! The wealth of the world’s five richest men has more than doubled
from 2020, as 4.8 billion people became poorer.
The 2024 Oxfam report entitled *Inequality Inc
<https://substack.com/redirect/cf50bf2d-72ee-4d00-9539-bd269f756bee?j=eyJ1IjoiMWEwZ2lqIn0.PS59_znKHzlOwVUkakEgDIZc_vNuaWsHL-9LkCsoC2Q>*.
warned, “We’re witnessing the beginnings of a decade of division” as
billions cope with the “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”,
noted
<https://substack.com/redirect/62da558d-d38f-469f-8d39-cc4ed2398110?j=eyJ1IjoiMWEwZ2lqIn0.PS59_znKHzlOwVUkakEgDIZc_vNuaWsHL-9LkCsoC2Q>
Oxfam
International’s Amitabh Behar.
*Driving inequality*
Summarising the report, Tanupriya Singh
<https://substack.com/redirect/d4bccf20-8825-4b68-aae9-69ef1dca59a5?j=eyJ1IjoiMWEwZ2lqIn0.PS59_znKHzlOwVUkakEgDIZc_vNuaWsHL-9LkCsoC2Q>
noted
gaps between rich and poor, and between wealthy nations and developing
countries had grown again for the first time in the 21st century as the
super-rich became much richer.
The Global North has 69% of all wealth worldwide and 74% of billionaire
riches. Oxfam notes contemporary wealth concentration began with
colonialism and empire.
Since then, “neo-colonial relationships with the Global South persist,
perpetuating economic imbalances and rigging the economic rules in favour
of rich nations”.
The report notes, “economies across the Global South are locked into
exporting primary commodities, from copper to coffee, for use by
monopolistic industries in the Global North, perpetuating a colonial-style
‘extractivist’ model”.
Inequalities within rich nations have grown, with marginalised communities
worse off, giving rise to rival ethno-populisms and vicious identity
politics.
Seventy per cent of the world’s largest corporations have a billionaire as
principal shareholder or chief executive. These firms are worth over $10
trillion, which exceeds the total output of Latin America and Africa.
The incomes of the rich have grown much faster than for most others. Hence,
the top 1% of shareholders own 43% of financial assets worldwide – half in
Asia, 48% in the Middle East, and 47% in Europe.
Between mid-2022 and mid-2023, 148 of the world’s largest corporations made
$1.8 trillion in profits. Meanwhile, 82% of 96 large corporations’ profits
went to shareholders via stock buybacks and dividends.
Only 0.4% of the world’s largest companies have agreed to pay minimum wages
to those contributing to their profits. Unsurprisingly, the poorer half of
the world earned only 8.5% of world income in 2022.
The wages of almost 800 million workers have not kept up with inflation. In
2022 and 2023, they lost $1.5 trillion, equivalent to an average of 25 days
of lost wages per employee.
In addition to income inequality, the 2024 Oxfam Report
<https://substack.com/redirect/5c6b945a-8114-4960-aa61-08f4ed1a397d?j=eyJ1IjoiMWEwZ2lqIn0.PS59_znKHzlOwVUkakEgDIZc_vNuaWsHL-9LkCsoC2Q>
noted
workers face mounting challenges due to stressful workplace conditions.
The gap between the incomes of the ultra-rich and workers is so huge that a
female health or social worker would need 1,200 years to earn what a
Fortune 100 company CEO makes annually!
Besides lower wages for women, unpaid care work
<https://substack.com/redirect/eafc2cd6-bb58-4d3a-a44f-f99d947cdd27?j=eyJ1IjoiMWEwZ2lqIn0.PS59_znKHzlOwVUkakEgDIZc_vNuaWsHL-9LkCsoC2Q>
subsidises
the world economy by at least $10.8 trillion yearly, thrice what Oxfam
terms ‘tech industry’.
*Monopoly power*
Oxfam notes that monopoly power has worsened world inequality. Thus, a few
corporations influence and even control national economies, governments,
laws, and policies in their own interest.
An International Monetary Fund (IMF) study found monopoly power responsible
for 76% of the fall in the labour share of US manufacturing income.
Behar noted, “Monopolies harm innovation and crush workers and smaller
businesses. The world hasn’t forgotten how pharma monopolies deprived
millions of people of COVID-19 vaccines, creating a racist vaccine
apartheid while minting a new club of billionaires”.
Between 1995 and 2015, 60 pharmaceutical companies merged into ten Big
Pharma giants. Although innovation is typically subsidised with public
funds, pharmaceutical monopolies price-gouge with impunity.
Oxfam notes the Ambani fortune in India comes from monopolies in many
sectors enabled by the Modi regime. Ambani’s son’s recent extravagant
wedding celebrations flaunted extreme wealth concentration worldwide.
The 2021 Oxfam report
<https://substack.com/redirect/0b68250c-b477-4227-b6e3-024ffbf4e193?j=eyJ1IjoiMWEwZ2lqIn0.PS59_znKHzlOwVUkakEgDIZc_vNuaWsHL-9LkCsoC2Q>
estimated
that “an unskilled worker would need 10,000 years to earn what Ambani made
in an hour during the pandemic and three years to earn what he made in a
second”.
Unsurprisingly, the 2023 Oxfam Report
<https://substack.com/redirect/3451cf0a-3813-44a2-8af5-b4d831b8d839?j=eyJ1IjoiMWEwZ2lqIn0.PS59_znKHzlOwVUkakEgDIZc_vNuaWsHL-9LkCsoC2Q>
noted,
“India’s richest 1% own around 40% of the country’s wealth, while over 200
million people continue to live in poverty”.
*Fiscal subordination*
Corporations have increased their value through a “sustained and highly
effective war on taxation … depriving the public of critical resources”.
As many corporations increased their profits, the average corporate tax
rate dropped from 23% to 17% between 1975 and 2019. Meanwhile, around a
trillion dollars went into tax havens in 2022 alone.
Of course, falling corporate tax rates are also due to “the broader
neoliberal agenda promoted by corporations and their wealthy owners, often
alongside Global North countries and international institutions such as the
World Bank”.
Meanwhile, pressures for fiscal austerity have grown as government tax
revenue has declined relatively for decades. High government indebtedness
with corporate tax evasion and avoidance have exacerbated austerity
policies.
Underfunded public services have adversely affected consumers and
employees, especially health and social protection. Higher interest rates
have worsened debt crises in developing nations.
With governments fiscally constrained from sustaining public services,
privatisation advocates have become more influential, gaining greater
control of public resources by various means.
Private corporations profit from discounted public asset sales,
public-private partnerships and government contracts to deliver public
policies and programmes.
“Major development agencies and institutions… have found common ground with
investors by embracing approaches that ‘de-risk’ such arrangements by
shifting financial risk from the private to the public sector”, the report
states.
Access to essential public services should be universal. Insisting on
private profit-making considerations deprives marginalised communities of
access, worsening inequalities.
*Related IPS Articles*
· Paltry International Support for Spending Needs Sets
South Further Back
<https://substack.com/redirect/b92d7c3d-7595-431f-a869-ae7c605d8a98?j=eyJ1IjoiMWEwZ2lqIn0.PS59_znKHzlOwVUkakEgDIZc_vNuaWsHL-9LkCsoC2Q>
· IMF, World Bank Must Urgently Help Finance Developing
Countries
<https://substack.com/redirect/6e25ce24-8785-4dd9-8e1e-bfdc38a54979?j=eyJ1IjoiMWEwZ2lqIn0.PS59_znKHzlOwVUkakEgDIZc_vNuaWsHL-9LkCsoC2Q>
· COVID-19 Compounding Inequalities
<https://substack.com/redirect/da8a9bdb-8a22-4998-82d8-438b037c5906?j=eyJ1IjoiMWEwZ2lqIn0.PS59_znKHzlOwVUkakEgDIZc_vNuaWsHL-9LkCsoC2Q>
· The Best Law Capital Can Buy
<https://substack.com/redirect/b8c0a7ba-919a-4ee0-a4ca-2a52c978d3ce?j=eyJ1IjoiMWEwZ2lqIn0.PS59_znKHzlOwVUkakEgDIZc_vNuaWsHL-9LkCsoC2Q>
· Meritocracy Legitimizes, Deepens Inequality
<https://substack.com/redirect/cac7f2b5-f3cb-45ec-a4ba-880e1d1b963b?j=eyJ1IjoiMWEwZ2lqIn0.PS59_znKHzlOwVUkakEgDIZc_vNuaWsHL-9LkCsoC2Q>
· Financialization Increases Inequality
<https://substack.com/redirect/42a8b3d6-0f86-4b4c-8574-b8aa2ba1d149?j=eyJ1IjoiMWEwZ2lqIn0.PS59_znKHzlOwVUkakEgDIZc_vNuaWsHL-9LkCsoC2Q>
· Inequality and Its Many Discontents
<https://substack.com/redirect/0b928fc1-bee6-49c2-b056-1f08cf82a5b5?j=eyJ1IjoiMWEwZ2lqIn0.PS59_znKHzlOwVUkakEgDIZc_vNuaWsHL-9LkCsoC2Q>
· Neoliberal Reforms Strengthening Monopoly Power and
Abuses
<https://substack.com/redirect/243b605b-8d8c-4c88-8959-dc90b35d9d76?j=eyJ1IjoiMWEwZ2lqIn0.PS59_znKHzlOwVUkakEgDIZc_vNuaWsHL-9LkCsoC2Q>
· Globalization, Inequality, Convergence, Divergence
<https://substack.com/redirect/b90b3451-78a9-4fa5-b142-51e49fa84030?j=eyJ1IjoiMWEwZ2lqIn0.PS59_znKHzlOwVUkakEgDIZc_vNuaWsHL-9LkCsoC2Q>
· Tackling Inequality Talk Is Easy
<https://substack.com/redirect/a7b6cc22-2e4f-4398-90c2-6888a9a3093f?j=eyJ1IjoiMWEwZ2lqIn0.PS59_znKHzlOwVUkakEgDIZc_vNuaWsHL-9LkCsoC2Q>
*Siti Maisarah Zainurin will join a Malaysian government research institute
after completing work at Khazanah Research Institute.*
https://www.ipsnews.net/2024/08/global-poverty-grows-super-rich-get-richer-faster/
<https://substack.com/redirect/0cd65ea3-249f-48c8-841b-15773a2bef07?j=eyJ1IjoiMWEwZ2lqIn0.PS59_znKHzlOwVUkakEgDIZc_vNuaWsHL-9LkCsoC2Q>
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