The Oxfam study provides a thought-provoking examination of the stark economic disparities that mark today’s world, revealing alarming patterns of wealth concentration and spotlighting the debilitating effects of inadequate government funding on essential public services. This report, launched in the lead-up to the five-day World Economic Forum (WEF) Annual Meeting in Davos, Switzerland, offers insightful analysis related to global and regional wealth inequalities.
Global Wealth Concentration
According to the study, a staggering dichotomy exists as 26 individuals possess the same amount of resources as the poorest half of the world population, approximately 3.8 billion people. This highlights an intense concentration of wealth.
The reported inequality is exacerbated by government practices worldwide. These include underfunding essential public services like education and healthcare, inadequately taxing corporations and affluent individuals, and failing to execute stringent measures against tax evasion.
Impact on Women and Girls
The investigation shed light on how such practices disproportionately affect marginalized gender groups, especially women and girls. Their suffering peaks when public services are compromised. For instance, girls are often the first to drop out of school when families can’t cover tuition fees. Concurrently, women dedicate countless unpaid hours to caring for ill family members when health systems are ineffectual.
The study also revealed a crucial aspect of gender economic disparity: men own nearly 50% more wealth than women worldwide, influencing over 86% of corporations. In essence, women’s unpaid work globally amounts to a whopping $10 trillion annually, 43 times Apple’s annual turnover.
India’s Economic Inequality
Diving into specific regions, the Oxfam report scrutinizes the economic scenario in India, where the top 10% of the population possesses 77.4% of total national wealth. The top 1% hold 51.53% of the country’s wealth, leaving the remaining 48% for the rest of the population. This staggering discrepancy is highlighted by a 39% wealth increase for India’s top 1% compared to a meager 3% income growth for the bottom 50%.
Women and girls in India bear the brunt of this economic inequality. Unpaid work by women engaged in household chores and childcare equates to 3.1% of India’s GDP.
India’s Gender Disparity
Outlining India’s poor 108th ranking on the WEF’s Global Gender Gap Index of 2018, the report declared households primarily reliant on female earners as poorer due to the gender pay gap phenomenon. Additional factors like caste, class, religion, age, and sexual orientation further complicate gender inequality.
| Parameter | Fact |
|---|---|
| Unpaid Work by Indian Women | 3.1% of GDP |
| India’s Top Wealth Holders | Top 1% controls 51.53% wealth |
| Wealth Growth | 39% for top 1%, only 3% for bottom 50% |
Despite legal provisions addressing violence against women, the implementation remains an issue, mainly due to a deeply patriarchical society. Social norms often determined women’s ability to engage in paid work, with the primary role being household management and family care.
Recommendations and Shortcomings
The Oxfam study suggests that governments set concrete, time-bound targets and action plans to curtail inequality, adhering to the Sustainable Development Goals (specifically SDG-10: Reduce Inequalities). The plans should prioritize universal free healthcare, education, pensions, child benefits, and other public services.
However, some shortcomings of the Oxfam report have been highlighted by critics. These include a heavy reliance on net wealth as an indicator of global inequality, which overlooks significant elements like purchasing power parity, standard of living, pension funds, and future investment prospects. For instance, a large number of Indians invest in their children’s education, considering it as tomorrow’s investment rather than today’s liability.