Meanwhile,
the top 1 percent have more wealth than the poorest half of the
world’s adults.
As global
crises of climate change, forced migration and conflict continue to
heat up, battering the planet’s most vulnerable, the age-old story
remains true: the world’s rich keep getting richer, and the poor
keep getting poorer, and the trend is only expected to continue,
according to a new report released Tuesday.
The Global
Wealth Report 2016 from the Credit Suisse Research Institute finds
that wealth inequality is on the rise, with the bottom poorest half
of the world’s adults in control of less wealth than the top 1
percent. Meanwhile, the richest 10 percent of the world enjoyed a
boost from the 2008 financial crisis and now own a whopping 89
percent of all assets.
Vast wealth
inequality is a familiar story, but the levels of economic disparity
in 2016 remain shocking.
“This
huge gap between rich and poor is undermining economies,
destabilizing societies and holding back the fight against poverty,”
Oxfam’s head of inequality policy, Max Lawson, said in a statement
in response to the new report.
The report
also details how wealth distribution affects different regions, with
unsurprising concentrations of lower income people in India and
Africa. The wealthiest 10 percent of adults are mostly in North
America, Europe and the Asia-Pacific.
Data on
China shows great inequality as home to both 9 percent of the world’s
wealthiest top 1 percent — a higher percentage than France,
Germany, Italy or the United Kingdom — and over 10 percent of the
poorest tenth of the population. Meanwhile, in Latin America, adults
are fairly evenly spread across the wealth spectrum.
The report
comes as global wealth inequality is increasingly in the spotlight
with economic factors like debt crises in countries like Greece and
Spain, recessions in countries such as Brazil, and a global slump in
commodity prices putting pressure on economies and showing cracks in
the system as the most vulnerable suffer most. The issue increasingly
finds its way into political rhetoric, but concrete solutions remain
evasive.
“Political
concerns about inequality are not being translated into the action
needed to give hope and opportunities to the millions who have been
left behind,” Lawson continued. “Governments must act now
by cracking down on tax dodging, increasing investment in public
services and boosting the income of the lowest paid.”
And it’s
not just an issue to be on the agenda in the Global South — some of
the world’s poorest are increasingly found in high income
countries. The bottom 20 percent of adults, currently sitting around
1 billion people, own no more than US$248, while the poorest half of
the world, about 2.4 billion adults, own less than US$2,222. The
majority of these group are concentrated in Africa and India,
followed by the Asia-Pacific region, together making up 70 percent of
the poorest half of the world. The remaining 30 percent of spread out
across China, Europe, Latin America and North America.
The report
predicts that the number of millionaires in the world will hit a
record high of 45.1 million in the next five years, while the number
of billionaires will increase by 945 for a total of 3,000 around the
world. The middle class will be the fastest-growing income group.
Source:
Comments
Post a Comment