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As elite gather at Davos, Oxfam reports biggest ever global increase in billionaires

·         Richest 1% bagged 82% of wealth created last year – poorest half of humanity got nothing

·         Two new Irish billionaires created with combined wealth of €34.2bn

·         Ireland has role to play in tackling obscene global inequality

Last year saw the biggest increase in the number of billionaires in history, with one more billionaire created every two days. There are now 2,043 dollar billionaires worldwide, while the 3.7 billion people who make up the poorest half of the world saw no increase in their wealth, according to a new Oxfam report released today.

During this period of “billionaire boom”, 82% of the wealth generated went to the richest 1% of the global population, as the combined wealth of billionaires increased by $762bn. This is enough to end extreme poverty seven times over.

Last year saw the biggest increase in the number of billionaires in history, with one more billionaire every two days. There are now 2,043 dollar billionaires worldwide. Nine out of 10are men.5

Billionaires also saw huge increase in their wealth. This increase was enough to end extreme poverty seven times over. 82% of all of the growth in global wealth in the last year went to the top 1%, whereas the bottom 50% saw no increase at all. 6, one more every two days. Billionaires saw their wealth increase by $762bn in 12 months

. This huge increase could have ended global extreme poverty seven times over. 82% of all wealth created in the last year went to the top 1%, while the bottom 50% saw no increase at all Ireland also contributed to the upsurge in billionaires. Two more Irish people joined this exclusive club in 2017, bring the total number to eight, with a combined wealth of €34.2bn.

‘Reward Work, Not Wealth’ reveals how the global economy enables a wealthy few to accumulate vast fortunes while hundreds of millions of people are struggling to survive on poverty pay. The report is being launched as political and business elites gather this week for the World Economic Forum in Davos, Switzerland.

The report also finds that;

·         In the period between 2006 and 2015, ordinary workers saw their incomes rise by an average of just 2% a year, while billionaire wealth rose by nearly 13% year – almost six times faster.

·         The richest 1% continue to own more wealth than the whole of the rest of humanity.

·         It takes just four days for a CEO from one of the top five global fashion brands to earn what a Bangladeshi garment worker will earn in her lifetime.

·         It would cost $2.2 billion a year to increase the wages of all 2.5 million Vietnamese garment workers to a living wage. This is about a third of the amount paid out to wealthy shareholders by the top five companies in the garment sector in 2016.

Oxfam’s report outlines the key factors driving up rewards for shareholders and corporate bosses at the expense of workers’ pay and conditions. These include the erosion of workers’ rights; the excessive influence of big business over government policy-making; and the relentless corporate drive to minimise costs in order to maximise returns to shareholders.

Jim Clarken, Oxfam Ireland’s Chief Executive, said: “The billionaire boom is not a sign of a thriving economy but a symptom of a failing economic system. The people who make our clothes, assemble our phones and grow our food are being exploited to ensure a steady supply of cheap goods, and swell the profits of corporations and billionaire investors.”

Women workers often find themselves at the bottom of the heap. Across the world, women consistently earn less than men and are usually in the lowest paid and least secure forms of work. By comparison, 9 out of 10 billionaires are men.

Clarken continued: “Oxfam has spoken to women across the world whose lives are blighted by inequality. Women in Vietnamese garment factories who work far from home for poverty pay and don’t get to see their children for months at a time. Women working in the US poultry industry who are forced to wear nappies because they are denied toilet breaks. Women working in hotels in Canada and the Dominican Republic who stay silent about sexual harassment for fear of losing their jobs.”

Oxfam is calling for governments to ensure our economies work for everyone and not just the fortunate few by:

  • Limiting returns to shareholders and top executives, and ensuring all workers receive a minimum ‘living’ wage that would enable them to have a decent quality of life.
  • Ensuring that Governments set concrete, time bound targets and action plans to reduce inequality: In Ireland’s case this would mean implementing commitments made in the Programme for Government, whereby the Government committed to ‘develop the process of budget proofing as a means of advancing equality.’
  • Ensuring the wealthy pay their fair share of tax through higher taxes and a crackdown on tax avoidance, and increasing spending on public services such as healthcare and education. Oxfam estimates a global tax of 1.5 percent on billionaires’ wealth could pay for every child to go to school.

On Ireland’s role, Jim Clarken said; “The Irish Government is not helpless in the face of technological change and market forces. A major contributor to this obscene inequality is the widespread use of tax dodging by large corporations and the super-rich.

“Recently, our own country’s tax arrangements have been implicated as facilitating some of these nefarious practices. So now is the opportune time for the Irish Government to show their support for international tax reforms.

“Ireland must also step up and play a central role in driving change in the way global economies work. We need to use our influence and support initiatives which mean that everyone, not just elites, enjoy the fruits of international trade.”

ENDS

Notes to editors

·         ‘Reward Work, Not Wealth’ and a methodology document that outlines how Oxfam arrived at the key statistics in the report, is available for download: https://oxfam.box.com/s/eosi27xj7nxuyywysr06d734ct1xyuev

·         Broadcast quality footage and photographs available featuring Lan, who works in a garment factory in Vietnam, supplying many global fashion brands. Long hours and poverty pay mean Lan has not been able to get home to see her son for 9 months.   https://wordsandpictures.oxfam.org.uk/?c=34775&k=ae837a41d2

·         New data from Credit Suisse reveals that 42 people now own the same wealth as the poorest half of humanity. This figure cannot be compared to figures from previous years - including the 2016/17 statistic that eight men owned the same wealth as half the world - because it is based on an updated and expanded data set published by Credit Suisse in November 2017.  When Oxfam recalculated last year’s figures using the latest data we found that 61 people owned the same wealth as half the world in 2016 – and not eight.

·         Oxfam’s calculations are based on global wealth distribution data provided by the Credit Suisse Global Wealth Data book 2017.  The wealth of billionaires was calculated using Forbes' billionaires list last published in March 2017.

 

 

 

 

 

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More than 80% of new global wealth goes to top 1% while poorest half get nothing, new Oxfam report reveals

Oxfam campaigners set up an ‘inequality restaurant’ in Belfast city centre

Eighty-two percent of wealth generated last year across the world went to the richest one percent of the global population, while the 3.7 billion people who make up the poorest half saw their wealth flatline, according to a new Oxfam report published today.

Reward Work, Not Wealth sets out how the very biggest gains were made by billionaires. Oxfam said it was unacceptable and unsustainable for our economies to continue to enable a super-rich minority to accumulate vast wealth while hundreds of millions of people struggle to survive on poverty pay. It called for a rethink of legal and business models that prioritise shareholder returns over broader social impact.

As political and business elites gather in Davos for the World Economic Forum, Oxfam campaigners in Belfast city centre set up a mini restaurant – with unequal servings – to illustrate the huge gap between rich and poor.

Jim Clarken, Oxfam Ireland’s Chief Executive, said: “Something is very wrong with a global economy that allows the one percent to enjoy the lion’s share of increases in wealth while the poorest half of humanity miss out.

“In the 12 months to March 2017, billionaires’ fortunes grew by a staggering £585 billion [$762 billion] – enough to end extreme poverty more than seven times over.”

Oxfam has previously identified the role of tax dodging in driving inequality. This year its report highlights how the excessive corporate influence on policy-making, erosion of workers’ rights and relentless drive to minimise costs in order to maximise returns to investors all contribute to a widening gap between the super-rich and the rest.

Billionaire wealth rose by an average of 13 percent a year between 2006 and 2015 – six times faster than the wages of ordinary workers. It takes just four days for a CEO of one of the world’s five biggest fashion retailers to earn as much as a Bangladeshi garment worker will earn in her entire lifetime.

Women consistently earn less than men and are concentrated in the lowest-paid, least-secure forms of work. At current rates of change it will take 217 years to close the global gap in pay and employment opportunities between women and men. Oxfam has heard from women in Vietnamese garment factories whose low wages force them to live apart from their children, women in the US poultry industry who wear nappies because they are denied toilet breaks, and women working in hotels in Canada and the Dominican Republic who stay silent about sexual harassment for fear of being fired.

Clarken added: “The world has made huge strides forward in ending poverty but progress could be even faster if we did more to break down the barriers that are holding back the world’s poorest people. For work to be a genuine route out of poverty we need to ensure that ordinary workers receive a living wage and can insist on decent conditions, and that women are not discriminated against. If that means less for the already wealthy then that is a price that we – and they – should be willing to pay.

“Leaders should ensure that wealthy individuals and businesses pay their fair share of tax by cracking down on tax avoidance, and invest this into essential services like schools and hospitals, and creating jobs for young people.”

A new survey of 70,000 people in ten countries, including the UK, demonstrates huge support for action to tackle inequality. Nearly two-thirds of people – 72 percent in the UK – say they want their government to urgently address the income gap between rich and poor in their country. In the UK, when asked what a typical British CEO earned in comparison to an unskilled worker, people guessed 33 times as much. When asked what the ideal ratio should be, they said 7:1. In some sectors the reality can be very different. FTSE 100 bosses, for example, earn on average 120 times more than the average employee.

Clarken added: “Many leaders say they’re worried about the corrosive effect of inequality but their tough talk too often fades away at the first resistance. Some companies and wealthy individuals are taking steps towards fairer ways of doing business but too many others use their power to protect their own interests. To really transform our economies, we need to look again at the business models and laws that prioritise shareholder returns above wider social benefit.”

Tax avoidance by businesses and wealthy individuals is estimated to cost developing countries and poor regions $170 billion a year – money that could be used to fight poverty and provide public services. In the UK, Oxfam is urging the government to help fight tax dodging by using its upcoming Sanctions and Anti-Money Laundering Bill to ensure that Britain’s overseas territories publish the owners of companies incorporated on their shores. The Paradise Papers revealed the key role that UK-linked tax havens such as Bermuda play in facilitating global tax avoidance.

ENDS

SUGGESTED CAPTION: Table for one percent... Ahead of this week’s meeting of the world’s elite in Davos, Oxfam campaigners on inequality set up a mini restaurant in Belfast city centre to illustrate the huge gap between rich and poor. Eighty-two percent of new global wealth last year went to the richest one percent, while the poorest half saw no increase, according to a new Oxfam report. Photo by Press Eye/Darren Kidd.

More photos available for media use via: https://oxfam.box.com/v/BelfastPhotoStuntDavos2018

Oxfam spokespeople are available for interview. For interviews or more information, contact:

Phillip Graham on 07841 102535 / phillip.graham@oxfamireland.org

NOTES TO EDITORS

Inequality in numbers:

·         In 2017 it took just three days for the UK’s top bosses to make more money than the typical UK full-time worker will earn all year, according to The High Pay Centre.

·         In Nigeria, the legal minimum wage would need to be tripled to ensure decent living standards.

·         Eighty-two percent of new wealth last year went to the richest one percent, while the poorest half’s share of wealth flatlined.

·         Last year saw the biggest increase in the number of billionaires in history, with one more billionaire created every two days. There are now 2,043 dollar billionaires worldwide.

·         The increase in billionaires’ wealth in the year up to last March was enough to end extreme poverty more than seven times over.

·         In the period between 2006 and 2015, ordinary workers saw their incomes rise by an average of just 2% a year, while billionaire wealth rose by nearly 13% a year – almost six times faster.

·         By the end of the 4-day Davos meeting, billionaires’ fortunes could swell by an estimated $8 billion. This is enough money to lift 66 million people out of poverty for the year.

·         A CEO of one of the world’s five biggest global fashion retailers earns as much in four days as a Bangladeshi garment worker will earn in her entire lifetime

·         At current rates of change it will take 217 years to close the gap in pay and employment opportunities between women and men.

·         Cracking down on tax avoidance by wealthy corporations and individuals could save developing countries and the world’s poorest regions an estimated $170 billion a year – money desperately needed for schools and hospitals.  

The embargoed report and methodology are available for download. https://oxfam.app.box.com/s/eosi27xj7nxuyywysr06d734ct1xyuev

Table showing distribution of new global wealth: https://drive.google.com/file/d/15NMFNjFFWQCyimLPK_V3eAF0stTVn3md/view

Case study footage and photos available: Lan, a worker in a Vietnam factory supplying global fashion brands, sews 1200 pairs of trainers a day for around $1 [74p] an hour. https://wordsandpictures.oxfam.org.uk/?c=34775&k=ae837a41d2

Reward Work, Not Wealth will be published online. The report includes case studies of workers around the world interviewed by Oxfam about their pay and conditions.

See the report and methodology note for more information about Oxfam’s statistics.

·         Calculations are based on global wealth distribution data provided by the Credit Suisse Global Wealth Data book 2017. The wealth of billionaires was calculated using Forbes' billionaires list last published in March 2017.

·         The real increase in global wealth between July 2016 and June 2017 was $9.2 trillion [£7.3 trn], of which $7.6 trillion [£6 trn] (82 percent) went to the top one percent of the population and the remainder to the rest of the top 20 percent.

·         The top five largest publicly listed apparel retailers (excluding department stores) by sales are listed on the 2017 Forbes Global 2000 list of The World’s Biggest Public Companies.

·         Oxfam uses World Bank data to calculate how much it would cost to raise the income of everyone living in extreme poverty to above $1.90 a day. This is only one measure - ending poverty will require a range of actions.

·         RIWI and YouGov conducted the online survey of 70,000 people in ten countries: India, Nigeria, United States, United Kingdom, Mexico, South Africa, Spain, Morocco, Netherlands and Denmark. In the UK 3,016 adults were surveyed online and the sample size for the control group was 1,004 adults. Fieldwork was undertaken between October and November 2017. The figures are representative of all GB adults (aged 18+).

The High Pay Centre has calculated ratios for UK CEO to worker average wages.

The UN estimates that tax avoidance by businesses costs developing countries $100bn a year. Economist Gabriel Zucman estimates that the world’s poorest regions – Africa, Asia and Latin America – lose $70bn in annual revenue due to wealthy individuals’ use of tax havens.

The Sanctions and Anti-Money Laundering Bill is expected to reach Report Stage in the House of Commons in March. Oxfam is urging the government to accept an amendment that would ensure Britain’s overseas territories publish public registers of beneficial ownership of companies.

The sterling conversion of $762bn to £585bn was calculated based on the average FX rate GBP:USD between 1 April 2016 and 31 March 2017.

Yemen still starved of food and fuel despite month-long suspension of blockade

Ireland donated €4.8 million last year to world’s worst humanitarian crisis

18th January, 2018

Despite last month’s temporary lifting of the Saudi led-coalition blockade of Yemen’s northern ports, in the past three and a half weeks only 18 per cent of the country’s monthly fuel needs and just over half its monthly food needs have been imported through these ports, Oxfam said today.

These ports provide most of the goods the country needs to import with 80 per cent of all goods coming through Hodeida, one of the northern ports. Ninety per cent of the country’s food has to be imported. The arrival of much-needed new cranes in Hodeida is very welcome and crucial to speeding up supplies through the port. But the continued restrictions of vital supplies further endangers the 8.4 million people living on the brink of famine.

Last November, Irish Aid announced additional funding of €750,000 to the UN Yemen Humanitarian Fund. This brought Ireland’s total direct humanitarian support to Yemen to over €4.8 million for 2017, and almost €11.3m since the conflict began. In addition, last year, Ireland is the fifth largest donor to the UN Central Emergency Response Fund, which has allocated USD $25.6m to Yemen.

Oxfam warned of a catastrophic deterioration in what is already the world’s worst humanitarian crisis and the site of the largest cholera outbreak on record. The organization said that the lives of 22 million people in need of aid will continue to deteriorate if there is not a significant rise in the imports of the vital food, fuel and medicine. On the 19 January the blockade will have been lifted for a month and Oxfam is calling for all ports to remain open to the uninterrupted flow of commercial and humanitarian goods.

Jim Clarken, Oxfam Ireland’s CEO said; “The wanton disregard on all sides of this conflict for the lives of ordinary families struggling to cope after more than a 1,000 days of war is nothing short of an international scandal. This is a war waged with 21st century hi-tech weapons, but the tactic of starvation is from the Dark Ages. The international community must come together and take a stand against barbarism. Shane Stevenson, Oxfam’s Country Director in Yemen, said “There should be an immediate UN Security Council resolution calling for a full unrestricted opening of ports to commercial and humanitarian goods, an immediate ceasefire and redoubling efforts for peace talks.”

While the blockade has been temporarily lifted, 190,000 tonnes of food arrived at the main northern ports between 20 December and 15 January, compared with the estimated monthly food needs of 350,000 tonnes, according to the UN, shipping agencies and port authorities. Fuel imports over the same period were 97,000 tonnes compared with an estimated monthly fuel needs of 544,000 tonnes.

Fuel tankers and bulk cargo vessels of grain have docked but no container vessels have arrived, meaning that foods essential for survival, such as edible oil, have not entered the ports for some time.

Last month the price of imported cooking oil went up by 61 per cent in Al Baidha, 130 miles south east of the capital Sana’a. The price of wheat rose by 10 per cent across the country over the same period. Food prices have been rising since the conflict started. In Hodeida in the west of the country, the price of barley is three times higher than it was before the conflict, maize is up nearly 140 percent in Hadramout over the same period and the price of sorghum has doubled in Taiz.

Due to the fuel shortages and uncertainty of imports, one of Yemen’s major food companies has reduced its grain milling operations and another is struggling with milling and distributing food inside the country.

Companies face arbitrary restrictions by parties to the conflict when moving food around the country.

The food and fuel import crisis is exacerbated by a collapse in the country’s currency which has seen a dramatic drop in the exchange rate from 250 rials per US dollar to 500 in recent weeks. This will put more pressure on prices and hit the poorest and the families of the estimated 1.24 million civilian servants who have not received, or only occasionally received, a salary since August 2016.

Oxfam said that not only should the blockade be permanently lifted but there should also be an end to unnecessary restrictions on cargo ships coming into port. It called for an immediate ceasefire, an end to arms sales that have been fuelling the conflict and called on backers of the war to use their influence to bring the warring parties to the negotiating table.

ENDS

Daniel English

086 3544954

First EU tax haven blacklist names 17 countries

Oxfam calls on Irish Government to tackle tax avoidance at home and globally
 
5th December 2017
 
EU finance ministers including Minister Paschal Donohoe have today adopted the first EU blacklist of tax havens. The list includes 17 mostly small countries. The EU has also published an additional grey list of countries that currently qualify as tax havens but have promised reforms.
 
The blacklisting process considered non-EU member states only. 
 
Reacting to the news, Oxfam Ireland Chief Executive Jim Clarken said: “We welcome the EU’s commitment to addressing the damage done by tax havens and this first concrete step towards tackling tax avoidance. However, it is worrying to see that some of the most notorious tax havens got away on the grey list. 
 
“Placing countries on a grey list shouldn't just be a way of letting them off the hook, as has happened with other blacklisting efforts in the past. The EU has to make sure governments on the grey list follow up on their commitments, or else they must be blacklisted.
 
“It’s a sad irony that if the EU were to apply the criteria to its own member states, Ireland, along with three EU countries; Malta, the Netherlands and Luxembourg would be blacklisted too. While we welcome Minister Donohoe’s support for the blacklisting process, we continue to call for him and the Irish government to tackle tax avoidance at home as well as globally. 
 
Specifically, we need the government to be proactively engaged in tackling existing tax avoidance mechanisms which Ireland is inadvertently facilitating. 
 
The EU’s list was established following a screening and a dialogue conducted during 2017 with a large number of third country jurisdictions. Those that appear on the list failed to take meaningful action to address deficiencies identified and did not engage in a meaningful dialogue on the basis of the EU’s criteria. Work on the list started in July 2016 within the Council's working group responsible for implementing an EU code of conduct on business taxation, in coordination with its high-level working party for taxation.
 
Last week, Oxfam published the report ‘Blacklist or whitewash?’, showing what a robust blacklist of tax havens would look like if the EU were to objectively apply its own criteria and not bow to political pressures. Oxfam concluded that at least 35 non-EU countries should be included in the EU tax haven blacklist. In addition, four EU member states fail the EU’s own criteria: Ireland, Luxembourg, the Netherlands and Malta. 
 
ENDS
 
Daniel English
Oxfam Ireland
086 3544954
 
Photos and TV-quality video footage of today illustrating a tax haven in Brussels are available and can be used by the media for free.
 
An interactive map shows the 39 countries listed in the report and explains why they should have been blacklisted by the EU.
 
The EU committed to a blacklist process in the wake of scandals like the Panama Papers and Lux Leaks that showed how tax havens let the companies and the super-rich get away with billions in unpaid taxes. The EU blacklist is based on three criteria: transparency, fair taxation, and participation in international fora on tax.
 
The EU’s blacklisting negotiations have taken place behind closed doors, and countries participating in the talks have refused to answer questions. The process has been in the hands of one of Brussels’ most secretive working bodies, the so-called Code of Conduct Group, which insists on its work being confidential.
·         86% of European are in favour of “tougher rules on tax avoidance and tax havens”, while 8% are “against the idea” according to the Standard Eurobarometer, published in July 2017.
·         Tax dodging costs developing countries $170 billion a year: $70 billion through tax dodging by super-rich individuals and $100 billion through corporate tax dodging. $100 billion could provide an education for 124 million children and pay for healthcare services that could prevent the deaths of at least six million children annually.  There are 124 million children out of school. The annual domestic financing gap to achieve universal education in low and low middle-income countries is $39 billion per year. $32 billion would fund the key healthcare to prevent the deaths of 6 million children each year.
 
Following the Paradise Papers scandal, Oxfam released a 5-point plan outlining steps governments should take to prevent further scandals on a global scale. This includes establishing a global blacklist of tax havens that naming countries such as Ireland and the Netherlands that have been key players in the Paradise Papers scandal.

 

Oxfam's new one-of-a-kind accessories shop will do a world of good

Oxfam Ireland’s unique fashion collaboration with SIX opens in Belfast 

An accessories and jewellery shop with a difference has opened in Belfast city centre – and will help Oxfam Ireland to raise vital funds for people in crisis and poverty across the world.

The new SIX 4 GOOD store, now open for business in CastleCourt Shopping Centre, sells a wide range of brand-new fashion accessories and jewellery for women, men and children, including hair accessories, sunglasses, bags, purses, mobile phone accessories and homewares.

All the new items for sale in the store have been generously donated by European brand SIX free of charge to Oxfam Ireland, with profits going to support the charity’s work worldwide in emergency response, long-term development and campaigning, including projects with women and girls.

This opening of the SIX 4 GOOD store – the first of its kind in Northern Ireland – is part of an ongoing corporate partnership with SIX, a brand of the Beeline fashion group, one of Europe’s leading suppliers of jewellery and accessories.

Michael McIlwaine, Oxfam Ireland’s Head of Retail, said: “Opening a shop which exclusively sells brand-new items from a single brand is an innovative departure for us and we’re delighted to be working with our long-standing partner Beeline on this unique collaboration.

“SIX 4 GOOD offers great value on a fantastic range, selling at discounted prices with items like rings, bracelets and earrings starting at just £2 and handbags from £7. This is exciting news for Northern Ireland’s bargain-hunting fashionistas and shoppers who like to look good and give back.”

Ulrich Beckmann, Founder and CEO of Beeline GmbH, said: “We want to give back part of our success to the community. This project is of particular importance for us and we are looking forward to continuing our successful cooperation with Oxfam Ireland to provide help for people in poverty worldwide.”

Mr. McIlwaine added: “Thanks to the generous donations by SIX, we are able to raise vital funds for our work worldwide, saving lives in emergencies like the current hunger crisis in countries like South Sudan, helping people build better lives through long-term development work and speaking out on the issues that keep people poor, like discrimination against women.

“For example, the handbag you buy in SIX 4 GOOD for £13 could provide 50 bars of soap for 50 Syrian families displaced by conflict, helping hygiene and preventing the spread of deadly diseases. Grabbing a bargain feels great but supporting families fleeing conflict or trying to lift themselves out of extreme poverty feels even better.”

For more information visit https://www.oxfamireland.org/shop/six-4good-castlecourt

 

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