Eight men, who have a combined fortune of $426 billion, own the same wealth as half the world’s population, a level of inequality which “threatens to pull our societies apart”, Oxfam has said ahead of the World Economic Forum opening in Davos
(From left) Bill Gates, Amancio Ortega, Warren Buffett, Carlos Slim, Jeff Bezos and Mark Zuckberg are among the eight successful names
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Life's unfair. Now, there's proof. The eight richest people on planet Earth are worth more than the combined wealth of half the world’s population, says an analysis by Oxfam.
These eight multibillionaires have a combined fortune of $426 billion. By contrast, half the planet’s population (that includes 3.6 billion people), have a combined wealth of $409 billion. The figures were published ahead of the gathering of the business and political elite at the World Economic Forum in Davos Switzerland.
The wealth of the world’s poorest 3.6 billion people is the equivalent to the combined net worth of six American businessmen, one from Spain and another from Mexico. Picked from Forbes’ billionaires list, they include Microsoft founder Bill Gates, Mark Zuckerberg who co-founded Facebook, and Jeff Bezos, founder of Amazon.
Larry Ellison (left) and Michael Bloomberg
Oxfam pointed to a link between the vast gap between rich and poor and growing discontent with mainstream politics around the world. "From Brexit to the success of Donald Trump’s presidential campaign, a worrying rise in racism and the widespread disillusionment with mainstream politics, there are increasing signs that more and more people in rich countries are no longer willing to tolerate the status quo,” Oxfam said in its new report, "An economy for the 99 per cent".
The charity said new data on wealth distribution from countries such as India and China had prompted it to revise its own calculation, having said a year ago the wealth of half the world’s population was in the hands of 62 people. World’s political and business elite will meet in Davos for the annual meeting of the World Economic Forum.
In India, the study recalled that lawmakers passed a disclosure mandate in 2013, requiring CEO-pay ratios to be made public, which is an important step towards informing the public about the level of inequality within companies.
"It is not only in rich countries that CEOs (Chief Executive Officers) are rewarded with salaries that far outstrip average incomes. A top executive in India's largest cigarette manufacturer is being paid 439 times the median salary for employees at his company," claimed the study, citing a report by the capital markets regulator Securities Exchange Board of India (SEBI).
"In contrast, a CEO in IT services firm receives 416 times as much as the average employee of his company," the study revealed.
With the richest accumulating wealth at such an astonishing rate that the world could see its first trillionaire in 25 years, the study found that one has to spend $1 million every day for 2,738 years to spend $1 trillion.
Admitting that global inequality was having a huge impact on women's lives, the study found that women, facing discrimination in the work place often find themselves at the bottom of the pile.
On current trends, it will take 170 years for women to be paid the same as men.
"Corporate tax dodging costs poor countries at least $100 billion every year. The amount is enough to provide education for 124 million children who are not in school," the report observed.
The per capita income of the top one per cent increased from over $38,000 in 2005 purchasing power parity to $49,800 while that of the bottom 10 per cent increased from $196 to $261.
Although both groups experienced the same percentage of income growth over the period, the $65 per capita increase for the bottom 10 per cent was dwarfed by the increase for the top one per cent, which was 182 times greater.
"The average wealth of each adult belonging to the richest one per cent is $1.7 million, i.e., 300 times greater than the wealth of the average person in the poorest 90 per cent, although for many people in the bottom 10 per cent their wealth is zero or negative," revealed the report.
Corporate tax dodging costs poor countries at least $100 billion every year. This is enough money to provide an education for the 124 million children who aren't in school and prevent the deaths of at least six million children thanks to health care services.
"Extreme inequality across the globe is having tremendous impact on women's lives. Employed women, who face high levels of discrimination in the work place, and take on a disproportionate amount of unpaid care work often find themselves at the bottom of the pile."
Calling to reverse the trends through progressive policies that share economic rewards between people, rather than concentrating returns to capital the report said income and wealth invested in public services and infrastructure could be used to improve social and economic opportunities.
"We need a human economy that works for the 99 per cent of the world population and benefits everyone, not just the privileged few. A new human economy that will create better and fairer societies where workers receive decent wages, women and men get treated equally, children will have opportunities," added the report.
HERE'S WHAT THEY ARE WORTH:
Bill Gates: Co-founder of Microsoft
net worth $75bn
Amancio Ortega: Founder of Zara owner Inditex
net worth $67bn
Warren Buffett: Largest shareholder in Berkshire Hathaway
net worth $60.8bn
Carlos Slim Helu: Owner of Grupo Carso
net worth $50bn
Jeff Bezos: Founder and chief executive of Amazon
net worth $45.2bn
Mark Zuckerberg: Co-founder and chief executive of Facebook
net worth $44.6bn
Larry Ellison: Co-founder and chief executive of Oracle
net worth $43.6bn
Michael Bloomberg: Owner of Bloomberg LP
net worth $40bn
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