Davos, 15 January 2024 (dpa/MIA) - The crises and wars of recent years have widened the gap between rich and poor around the world, a study published on Monday by the development organization Oxfam has shown ahead of the World Economic Forum (WEF) in Davos.

According to the study, the five richest people in the world - all men - have more than doubled their wealth since 2020. At the same time, almost 5 billion people, the poorest 60%, have become even poorer.

The study is based on data from various sources. For example, Oxfam combined estimates of the wealth of billionaires made by the US business magazine Forbes with estimates of global wealth from the bank Credit Suisse, the World Bank and the European statistics agency Eurostat.

In its analysis, Oxfam concludes that, at the current rate of growth, the world could have its first dollar trillionaire in 10 years' time. Global poverty, on the other hand, would still not be completely overcome in 230 years.

"Billionaires become richer, the working class struggles, and the poor live in desperation. That is the unfortunate state of the world economy," US Senator Bernie Sanders wrote in the foreword to the study.

"Never before in human history have so few owned so much. Never before in human history has there been such income and wealth inequality.

"And never before have we seen this unprecedented level of greed, arrogance and irresponsibility on the part of the ruling class," Sanders wrote.

According to the Oxfam data, the five richest men have made an average gain of $14 million per hour since 2020. Their wealth rose from $405 billion in 2020 to $869 billion most recently. The total wealth of all billionaires grew three times faster than the rate of inflation.

At the same time, 4.77 billion people, the poorest 60% of humanity, have lost a combined $20 billion in wealth since 2020. According to Oxfam, the wages of 791 million workers have not kept pace with the rate of inflation.

On average, each of them has lost almost one month's salary in two years.

The head of Oxfam Germany, Serap Altinisik, believes that society is therefore facing an ever-increasing ordeal. "While billions of people have to endure the shock waves of the pandemic, inflation and war, the fortunes of billionaires are booming," she said.

Inequality reinforces gender and racial discrimination because marginalized groups such as women and non-white people are particularly affected.

"It undermines democracy and is a major contributor to the climate crisis turning into a catastrophe," said Altinisik.

Oxfam is therefore calling for a tax on high wealth. The funds from this should be invested in action on climate change, the expansion of education, health care and social security.

Oxfam proposes the following wealth tax model: 2% on assets of more than $5 million, 3% on assets of more than $50 million and 5% on assets exceeding $1 billion.
According to Oxfam, a wealth tax on millionaires and billionaires could raise $2.5 trillion a year worldwide.

The WEF, a forum which gathers together leaders from the political and business world and many others, opens formally later Monday, with keynote speeches by leaders starting on Tuesday.

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