The annual Oxfam report titled "Inequality Inc." painted a stark picture of a widening wealth gap, with the fortunes of the five richest men doubling since 2020 while nearly five billion people have been made poorer. Released just before the World Economic Forum (WEF) in Davos, the report highlighted the stark realities of economic and gender disparity across the world.
Oxfam, a global confederation of NGOs fighting poverty and inequality, has been publishing the "Inequality Inc." report since 2014. Launched annually around the World Economic Forum, it highlights wealth disparity. This series has been exposing widening inequality for several years, urging systemic changes for a fairer future.
The report delves into the role of corporate giants in deepening economic divides, with seven of the top 10 global corporations led by billionaire CEOs or shareholders.
Soaring Wealth of the Top Five Billionaires
In terms of global wealth disparity, the report underscores the exponential rise in wealth of the top five richest people on Earth. Since 2020, the fortunes of the world's five richest men have more than doubled, reaching a staggering $869 billion.
This group includes high-profile names such as Tesla and SpaceX CEO Elon Musk; Bernard Arnault and family, which owns the French conglomerate Louis Vuitton Moet Hennessy (LVMH); Amazon CEO Jeff Bezos; Oracle founder Larry Ellison; and Warren Buffett, CEO and owner of investment firm Berkshire Hathaway. While the world was reeling from the pandemic, their wealth grew by 114%, or $464 billion, in the last three years.
Global Poverty and Inequality
Another major finding of the "Inequality Inc." report exposes the wealth inequality between the "Global North" and the rest of the world. The report defines the Global North as nations with high human development, industrialization, and political stability, primarily in North America and Western Europe. Despite representing just 20.6% of the world's population, these nations hold a staggering 69.3% of global wealth, leaving the 79.4% in the rest of the world with only 30.7%. This translates to a mere 653 billionaires residing in the Global North, controlling a whopping 74.2% of the world's billionaire wealth, compared to the 35 billionaires in the rest of the world.
While billionaires have seen their wealth skyrocket, the world's poorest 60% - almost 5 billion people-have experienced a decline in wealth. Oxfam warns that at the current pace, it will take 230 years to eradicate poverty, yet the world may witness its first trillionaire in the next decade.
Gender Disparity
While women make up nearly half the global population, they have a far weaker grasp on business leadership. Only 33% of businesses worldwide are owned by women. The data revealed glaring disparities across regions, with East Asia and Pacific leading the way (47% female share), followed by Europe and Central Asia (33%). The remaining regions trail significantly, with South Asia showing the starkest imbalance (only 18% female share).
The number of billionaires has skyrocketed since 2010, more than doubling to 2,489 by March 2023. But this stratospheric wealth club remains overwhelmingly male, with women making up just 12%, or 298 members. The US leads the pack with 91 female billionaires, nearly twice as many as any other nation
