The 1,000 richest people on the planet recouped their COVID-19 losses within just nine months, but it could take more
than a decade for the world’s poorest to recover from the economic impacts of the pandemic, reveals a new Oxfam report
today (25 January 2021). ‘The Inequality Virus’ is being published on the opening day of the World Economic Forum’s ‘Davos Agenda’.
The report shows that COVID-19 has the potential to increase economic inequality in almost every country at once, the first time
this has happened since records began over a century ago. Rising inequality means it could take at least 14 times longer
for the number of people living in poverty to return to pre-pandemic levels than it took for the fortunes of the top
1,000, mostly White male, billionaires to bounce back.
A new global survey of 295 economists from 79 countries, commissioned by Oxfam, reveals that 87 percent of respondents,
including Jeffrey Sachs, Jayati Ghosh and Gabriel Zucman, expect an ‘increase’ or a ‘major increase’ in income
inequality in their country as a result of the pandemic.
Oxfam’s report shows how the rigged economic system is enabling a super-rich elite to amass wealth in the middle of the
worst recession since the Great Depression while billions of people are struggling to make ends meet. It reveals how the
pandemic is deepening long-standing economic, racial and gender divides.The recession is over for the richest. The world’s ten richest men have seen their combined wealth increase by half a trillion dollars since the pandemic
began —more than enough to pay for a COVID-19 vaccine for everyone and to ensure no one is pushed into poverty by the
pandemic. At the same time, the pandemic has ushered in the worst job crisis in over 90 years with hundreds of millions
of people now underemployed or out of work.Women are hardest hit, yet again. Globally, women are overrepresented in the low-paid precarious professions that have been hardest hit by the pandemic.
If women were represented at the same rate as men in these sectors, 112 million women would no longer be at high risk of
losing their incomes or jobs. Women also make up roughly 70 percent of the global health and social care workforce
essential but often poorly paid jobs that put them at greater risk from COVID-19.Inequality is costing lives. Afro-descendants in Brazil are 40 percent more likely to die of COVID-19 than White people, while nearly 22,000 Black
and Hispanic people in the United States would still be alive if they experienced the same COVID-19 mortality rates as
their White counterparts. Infection and mortality rates are higher in poorer areas of countries such as France, India,
and Spain while England’s poorest regions experience mortality rates double that of the richest areas.Fairer economies are the key to a rapid economic recovery from COVID-19. A temporary tax on excess profits made by the 32 global corporations that have gained the most during the pandemic
could have raised $104 billion in 2020. This is enough to provide unemployment benefits for all workers and financial
support for all children and elderly people in low- and middle-income countries.
Gabriela Bucher, Executive Director of Oxfam International, said:
"We stand to witness the greatest rise in inequality since records began. The deep divide between the rich and poor is
proving as deadly as the virus.”
“Rigged economies are funnelling wealth to a rich elite who are riding out the pandemic in luxury, while those on the
frontline of the pandemic —shop assistants, healthcare workers, and market vendors— are struggling to pay the bills and
put food on the table.
“Women and marginalised racial and ethnic groups are bearing the brunt of this crisis. They are more likely to be pushed
into poverty, more likely to go hungry, and more likely to be excluded from healthcare.”
Billionaires fortunes rebounded as stock markets recovered despite continued recession in the real economy. Their total
wealth hit $11.95 trillion in December 2020, equivalent to G20 governments’ total COVID-19 recovery spending. The road
to recovery will be much longer for people who were already struggling pre-COVID-19. When the virus struck over half of
workers in poor countries were living in poverty, and three-quarters of workers globally had no access to social
protections like sick pay or unemployment benefits.
“Extreme inequality is not inevitable, but a policy choice. Governments around the world must seize this opportunity to
build more equal, more inclusive economies that end poverty and protect the planet,” added Bucher.
“The fight against inequality must be at the heart of economic rescue and recovery efforts. Governments must ensure
everyone has access to a COVID-19 vaccine and financial support if they lose their job. They must invest in public
services and low carbon sectors to create millions of new jobs and ensure everyone has access to a decent education,
health, and social care, and they must ensure the richest individuals and corporations contribute their fair share of
tax to pay for it.
“These measures must not be band-aid solutions for desperate times but a ‘new normal’ in economies that work for the
benefit of all people, not just the privileged few.”