Richest 1% to own more than rest of world, Oxfam says

The wealthiest 1% will soon own more than the rest of the world’s population, according to a study by charity group Oxfam.

The charity’s research shows that the share of the world’s wealth owned by the richest 1% increased from 44% in 2009 to 48% last year.

On current trends, Oxfam says it expects the wealthiest 1% to own more than 50% of the world’s wealth by 2016.

The research coincides with the start of the World Economic Forum in Davos.

The annual gathering attracts top political and business leaders from around the world, and Oxfam’s executive director Winnie Byanyima, who will co-chair the Davos event, said she would use the charity’s high-profile role at the gathering to demand urgent action to narrow the gap between rich and poor.

In a statement ahead of the gathering, Ms Byanyima said the scale of global inequality was “simply staggering”.

“It is time our leaders took on the powerful vested interests that stand in the way of a fairer and more prosperous world.

“Business as usual for the elite isn’t a cost free option – failure to tackle inequality will set the fight against poverty back decades. The poor are hurt twice by rising inequality – they get a smaller share of the economic pie and because extreme inequality hurts growth, there is less pie to be shared around,” she added.

Rich getting richer

The charity is calling on governments to adopt a seven point plan to tackle inequality, including a clampdown on tax evasion by companies and the move towards a living wage for all workers.

Oxfam made headlines at Davos last year with the revelation that the 85 richest people on the planet have the same wealth as the poorest 50% (3.5 billion people).

It said that that comparison had now become even starker, with the 80 richest people having the same wealth as the poorest 50%.

The charity said the research, published on Monday, showed that 52% of global wealth not owned by the richest 1% is owned by those in the richest 20%.

The remaining population accounts for just 5.5% of global wealth and their average wealth was $3,851 (£2,544) per adult in 2014, Oxfam found.

That compares to an average wealth of $2.7m per adult for the elite 1%.

The study comes just a day before US President Barack Obama’s State of the Union address, in which he is expected to call for tax increases on the wealthy to help the middle class.

In October, a report from banking giant Credit Suisse also said that the richest 1% of people own nearly half of the world’s wealth.

Source: BBC News