World's top 1% gained $42 trillion in a decade, taxes at record lows: Oxfam

The amount is 36 times greater than the wealth accumulated by the poorest half of the world's population, and nearly 80 per cent of the world's billionaires reside in G20 countries

In the last decade, the wealth of the richest one per cent globally surged by a staggering $42 trillion, news agency AFP reported, citing global non-profit organisation Oxfam. The remarks were released ahead of the G20 summit in Brazil. This gathering, with a focus on imposing higher taxes on the ultra-wealthy, is poised to address this growing disparity, the report noted.

The $42 trillion amassed by the ‘richest’ is nearly 36 times greater than the wealth accumulated by the poorest half of the world’s population. Despite this, billionaires globally have been paying taxes amounting to less than 0.5 per cent of their wealth, Oxfam noted. Nearly 80 per cent of the world’s billionaires reside in G20 countries.

 

Oxfam highlighted that, despite this massive increase in wealth, taxes on the affluent have dropped to unprecedented lows, contributing to severe inequality where the majority struggle to survive on meagre resources.

High hope from G20 summit in Brazil

Under Brazil’s leadership, the G20, representing 80 per cent of the global GDP, is prioritising international cooperation to tax the super-rich. At the inauguration of the summit this week in Rio de Janeiro before the global leaders meet in November, finance ministers aim to devise strategies to increase taxes on billionaires and prevent them from evading the tax systems.

The proposed initiative will involve creating methodologies to effectively tax billionaires and high-income earners. This plan will be a central topic at the summit, with countries like France, Spain, South Africa, Colombia, and the African Union supporting it, while the United States remains opposed.

Oxfam described the summit as a ‘real litmus test for G20 governments’, urging them to implement an annual net wealth tax of at least eight per cent on the ultra-wealthy. Max Lawson, head of inequality policy at Oxfam International, emphasised the growing momentum to increase taxes on the super-rich, questioning whether governments have the political will to establish a global standard prioritising the many over the few.

Climate financing contribution overstated

Earlier this month, Oxfam also criticised rich nations for overstating their climate finance contributions to developing countries. Although these countries claimed to provide almost $116 billion in climate finance in 2022, the actual support was no more than $35 billion, with a significant portion in the form of loans at profitable rates, exacerbating the debt of already burdened nations.

At the 2009 UN climate conference in Copenhagen, wealthy nations pledged $100 billion annually from 2020 to assist developing countries with climate change mitigation and adaptation. However, delays in meeting this commitment have strained trust and fuelled ongoing disputes during annual climate negotiations.

The NGO estimated that the true value of climate finance provided by rich countries in 2022 is as low as $28 billion and no more than $35 billion, with a maximum of $15 billion allocated for adaptation efforts crucial for climate-vulnerable nations.