One per cent of the world holds 50 per cent of wealth
The international agency, Oxfam, recently made a startling statement that the combined wealth of the richest one per cent will overtake that of the other 99 per cent of world's population by next year.
Thank you for that news Oxfam, in a time when consumers are trying to build a bit of self-confidence!
This means that one per cent of the world will soon own 50 per cent of the world’s wealth (you have read that correctly), unless, according to Oxfam, the current trend of rising inequality is checked.
One would consider that turning the tide of inequality is about likely as Bafana Bafana winning the World Cup, since we live a time when free market principles, democracy and entrepreneurship are embraced (as opposed to a global trend of sharing and caring!).
So yes, it turns out that the rich really are getting richer. And yes, they’ll soon own more than the rest of us put together!
Think about this – the 80 richest people on the planet have the same wealth as the poorest 3.5 billion people.
To be honest, this doesn’t make one feel very positive about life in general. After all, most of us in SA fall into the 99 per cent bracket who, it seems, own hardly anything.
Just pause to think about it (for those who thought long and hard about going on holiday because the budget is very tight, just like Eskom’s power supply) – one per cent of the global population (therefore probably around 70 million people of seven billion) own half of the planet’s wealth.
Surely, something is not right!
What is quite ironic is that Oxfam addressed its concerns at the Economic Forum meeting in Davos, which is a beautiful town, populated by the rich, in Switzerland. So much for really reaching out to the poor.
To continue dissecting this disturbing reality, executive director of Oxfam Winnie Byanyima warned that the explosion in inequality is holding back the fight against global poverty at a time when one in nine people do not have enough to eat and more than a billion people still live on less than R11 a day.
Byanyima called for urgent action to stem this rising tide of inequality, starting with a crackdown on tax-dodging by corporations, and to push for progress towards a global deal on climate change.
Here is something sobering to chew on: members of this global elite of one per cent had an average wealth of about R13-million per adult in 2014.
That sadly excludes me, but there might be a couple of candidates in this country who fall into this bracket.
Wealth: Having It All and Wanting More, a research paper published today by Oxfam, shows that the richest one per cent have seen their share of global wealth increase from 44 per cent in 2009 to 48 per cent in 2014 and, at this rate, it will be more than 50 per cent by 2016.
This may sound shocking, but the tale of woe is not yet done. Consider that most (actually around 46 per cent) of the remaining 50 per cent or so of the world’s wealth (not owned by the one per cent) is owned by the rest of the richest fifth of the world’s population.
This leaves 80 per cent of the world’s population (around 5.6 billion people) to share just 5.5 per cent of the global’s wealth and, at an average wealth of around R14 000 per adult, that’s 1/700th of the average wealth of the one per cent!
To put it in simple terms, most of the world who fall in the middle and lower classes barely have money to survive, while the rest of the population can afford to buy anything they want and go on lavish holidays.
Byanyima, said: “Do we really want to live in a world where the one per cent own more than the rest of us combined? The scale of global inequality is quite simply staggering and, despite the issues shooting up the global agenda, the gap between the richest and the rest is widening fast.”
I concur Byanyima. Yes, some millionaires and billionaires have worked hard to accrue their wealth, but something is amiss when most of the world suffer in mediocrity and poverty, while watching the “rich” enjoying caviar and lobster and drive around in Lamborghinis.
Talking about hard work, consider that more than a third of the 1 645 billionaires listed by Forbes inherited some or all of their riches. So, yes, it seems that in this life it is all about who your parents are, and it is the difference between waking up in a palace or in shack.
For interest’s sake, 20 per cent of billionaires have interests in the financial and insurance sectors, while billionaires listed as having interests in the pharmaceutical and healthcare sectors saw their collective net worth increase by 47 per cent.
To rub salt into the wounds of the poor, a separate research by the Equality Trust, which campaigns to reduce inequality in the UK, has also found that the richest 100 families in Britain in 2008 had seen their combined wealth increase by at least R270-billion.
Britain’s current richest 100 had the same wealth as 30 per cent of UK households.
Taking all of this with a dose of headache tablets (the cheap ones, of course, to calm the nerves), it is good to note that at lease inequality has moved up the political agenda over the past half-decade.
Pope Francis and International Monetary Fund managing director Christine Lagarde, along with the Yes We Can President Obama, have been among those warning that rising inequality will damage the world economy if left unchecked (we will just ignore the fact that those lobbying for greater quality are also extremely rich).
Obama and the Pope’s efforts do not solve my financial woes, but at least we, of the less fortunate bracket, are not forgotten by the ”mighty”.
Maybe someone should sent this Oxfam report to our government, who think it is just OK for most of us who fall into the 99 per cent bracket to pay exorbitant fees for using the highways.
