Oxfam: «The Greatest Rise in Inequality»
The world’s richest recouped their coronavirus-linked losses in a matter of months while many more are expected to take over a decade to make an economic recovery, according to a new report by Oxfam.
The world’s 1,000 richest individuals saw their wealth return to pre-pandemic levels in just nine months, according to Oxfam’s report titled «The Inequality Virus», backed by a strong stock market rebound despite a continued recession in the real economy. By December last year, this group saw their wealth reach $11.95 trillion – equivalent to G20 governments’ total recovery spending for the pandemic.
In contrast, the world’s poorest are expected to take more than a decade to recover from the economic impact of the pandemic with 87 percent of respondents in a global survey of 295 economists expecting an «increase» or «major increase» in income inequality within respective countries.
«We stand to witness the greatest rise in inequality since records began,» said Gabriela Bucher, Oxfam International’s executive director. «The deep divide between the rich and poor is proving as deadly as the virus.»
Hardest Hit
According to the report, women as well as marginalized racial and ethnic groups have been the hardest hit during the pandemic and are more likely to suffer from hunger and exclusion from healthcare.
In Brazil, for example, afro-descendants are 40 percent more likely to die of covid than white descendants, according to the report.
Poverty-stricken areas have also suffered disproportionately in terms of infection and mortality rates in countries like France, India and Spain. In the case of England, the poorest regions saw mortality rates double compared to the richest areas.
Hong Kong: Record Unemployment
In the financial hub of Hong Kong, the outlook is also worrying with 246,000 people now out of work and unemployment reaching a 16-year high of 6.6 percent.
Oxfam Hong Kong’s director-general, Kalina Tsang, is now calling on the local government to take more proactive measures to support households suffering from unemployment with suggestions for a short-term monthly allowance of HK$5,000 ($645) over the coming half-year period.
«Governments created the inequality crisis – they must act now to end it,» Tsang said.
