Oxfam Intermón has warned that the richest 1% of the planet own more wealth than 95% of the world’s population as a whole, according to a report by the NGO, based on data from UBS, and published this Monday as part of the sessions of the United Nations General Assembly.
Thus, the analysis indicates that Billionaires’ influence on the economy ‘has skyrocketed’ Well, “more than a third of the world’s 50 largest companies have a billionaire as their CEO or major shareholder.” Furthermore, it states that the total market capitalization of these companies is $13.3 trillion.
In this sense, Oxfam warns that, in “an era of global oligarchy”, global efforts to address the planet’s greatest challenges, such as the climate crisis or persistent levels of poverty and inequality, “are threatened by the concentration of power in the hands of the ultra-rich and mega-corporations.
This “hyper concentration of power and wealth”, according to the NGO, fuels inequalities both within and between countries. Indeed, it specifies that, although it represents 79% of the world’s population, The countries of the South “only possess 31% of the world’s wealth.”
“The shadow of the global oligarchy hangs over the United Nations General Assembly. The ultra-rich and the mega-corporations they control are shaping the rules of the game in their favor, at the expense of the rest of the population.“The United Nations is losing its ability to act in the face of the growing power of billionaires,” said Oxfam Intermón director Franc Cortada.
Among other data, the report states that The richest 1% own 43% of all global financial assets and that two multinationals own 40% of the global seed market. The “big three” American fund managers (BlackRock, State Street and Vanguard) manage $20 trillion in assets, or about a fifth of all investment assets in the world.
“Although the mantra is that great power rivalry is the main factor undermining multilateralism, the reality is that extreme inequality plays a key role. In recent years, the ultra-rich and most powerful corporations have used their enormous influence to shut down efforts to solve the world’s biggest problems, such as combating tax evasion and avoidance, ensuring that COVID-19 vaccines are accessible to all, or canceling the unsustainable debts of countries in the Global South,” Cortada explained.
Multilateral action
Oxfam therefore calls for multilateral action to promote a new international tax frameworkl, cancellation of public debt and new intellectual property laws against future pandemics.
“Only a multilateralism based on equity and justice can reverse the intensification of the power of a global oligarchy. Some world leaders are aware of this and have increased their efforts against inequality. But they must be more numerous and stronger,” Cortada insisted.
