Oxfam International's Report: "Takers Not Makers: The Unjust Poverty and Unearned Wealth of Colonialism"

Context

Oxfam International, a global confederation of NGOs established in 1995, released this report to shed light on the growing divide between the world's richest and poorest populations. The report highlights how historical colonial exploitation has perpetuated economic inequality and how modern systems continue to widen this gap.

Oxfam operates in 79 countries, including India, focusing on:

• Emergency relief.
• Rebuilding livelihoods.
• Advocating for lasting systemic changes, especially promoting women’s rights and equality.

Key Highlights

1. Rising Global Inequality

• Billionaire Wealth Growth:
  • Billionaire wealth increased by USD 2 trillion in 2024, with 204 new billionaires created.
  • Wealth of billionaires grew three times faster in 2024 compared to 2023, with each billionaire earning USD 2 million daily.
• Wealth Concentration:
  • The richest 1% control 45% of global wealth.
  • 3.6 billion people live on less than USD 6.85 per day (PPP).
  • 1 in 10 women globally lives in extreme poverty.
• Historical Inequality Growth:
  • In 1820, the wealth of the richest 10% was 18 times greater than that of the poorest 50%.
  • By 2020, this gap widened to 38 times.

2. Colonial Legacy and Power Imbalances

• Impact of Colonial Exploitation:
  • USD 64.82 trillion was extracted from India by the UK during colonial rule (1765–1900).
  • Of this, USD 33.8 trillion enriched the wealthiest 10%.
• Financial Transfers:
  • The Global South loses USD 30 million per hour to the Global North through financial systems.
• Global North Dominance:
  • Institutions like the IMF, World Bank, and UN Security Council remain dominated by the Global North.
  • 39% of global heads of state in 2017 were educated in the UK, USA, or France.

3. Inheritance and Cronyism

• In 2023, for the first time, more billionaires were created through inheritance than entrepreneurship.
• 60% of billionaire wealth originates from inheritance, monopolistic practices, or cronyism.

Understanding Global Inequality

Definition:

Global inequality refers to the uneven distribution of resources, opportunities, and power across the world’s population of 8 billion people.

Trends:

• Income Inequality Between Countries:
  • Since the 1990s, rapid economic growth in countries like China and others in Asia has reduced inequality between nations.
  • However, substantial disparities remain; for instance, average income in North America is 16 times higher than in sub-Saharan Africa.
• Income Inequality Within Countries:
  • 71% of the global population lives in countries where income inequality has worsened.

Drivers of Inequality:

1. Social Factors:
   • Gender, race, ethnicity, and geography.
   • Women and girls perform 12.5 billion hours of unpaid care work daily.
2. Economic Growth:
   • Uneven benefits of economic growth.
   • Wealth concentration due to inheritance and monopolies.
3. Emerging Drivers:
   • Climate change disproportionately affects the poor.
   • Lack of access to technology marginalizes vulnerable groups further.

Impacts:

• Inequality affects life expectancy, education, and access to basic services.
• Social discord and conflict arise due to limited social mobility and economic development.

India's Inequality Trends

Statistics:

• Gini Coefficient (2023): 0.410 (higher inequality compared to 0.371 in 1955).
• The top 10% control 77% of India’s wealth, while the richest 1% own 53%.
• The bottom 50% contribute 64% of GST revenue, while the top 10% contribute only 4%.

Drivers of Inequality:

• COVID-19 pandemic worsened disparities.
• Regressive tax policies burden the poor.
• Limited access to education and healthcare traps marginalized groups in poverty.

Government Initiatives:

• Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
• Samagra Shiksha Scheme 2.0.
• National Health Mission and Ayushman Bharat.

Conclusion

Oxfam’s report emphasizes the urgent need to address rising global inequality fueled by historical and systemic exploitation. The recommendations include:

1. Promoting progressive taxation and tackling tax evasion.
2. Establishing a New International Fair Economic Order to dismantle colonial-era systems.
3. Strengthening gender equality and valuing unpaid labor.
4. Ensuring environmental justice by holding wealthy nations accountable for climate impacts.

By implementing these measures, nations can work towards creating a more equitable world, ensuring access to resources, opportunities, and well-being for all.