"Is the Global Wealth Gap Inevitable, or Can it Be Reversed?"
Victor Hugo rightly said, “The paradise of the rich is made out of the hell of the poor.” The rich have dominated the society since the dawn of the civilisation, but it is now at the worst point ever in human history. More and more people living from paycheck to paycheck and poverty is also increasing. The rich are becoming richer and the poor are becoming poorer. And the latest Oxfam report paints an even more gloomy picture.
The report states the wealth of world’s billionaires grew by $2 trillion in 2024, that is amounting to $5.7 billion a day. The rate is three times faster than in 2023. The report, Takers Not Makers, brings the reality into sharp focus, with an estimate that five trillionaires might emerge in just a decade. This is shocking, as compared to last year's estimate, which was one. The report shows that in the same period, billionaires' wealth has risen by a staggering $2 trillion. Millions of people around the world continue to live in extreme poverty. World leaders, billionaires, and corporate executives will gather this week in Davos for the annual World Economic Forum, and the numbers tell a story that requires urgent action.While the fortunes of the ultra-rich soar, with the global number of billionaires increasing by 204 in one year alone, nearly half of the world's population; 3.6 billion people, are still living on less than $6.85 a day, according to Oxfam's analysis. This number has barely shifted since 1990, indicating a failure of the current economic systems to address deep-rooted poverty. What's worrisome is that 24.3 million more women than men live in extreme poverty, which is defined as less than $2.15 a day. Such an imbalance highlights a gendered dimension of poverty largely overlooked.The increase in billionaire wealth is mainly fuelled by inflated share prices of stocks and the soaring property prices across the globe. But much of this wealth isn't earned through innovation or entrepreneurship. Instead, a stunning 60% of global wealth comes from inheritance, corruption, cronyism, and monopoly power, meaning much of it is "taken," not "made." Some 18% of this wealth is directly tied to the power of monopolies. This raises important questions about the fairness of an economic system where a few hold such concentrated power while the majority struggle to meet basic needs.India, a country already known for its stark contrasts between extreme wealth and poverty, has seen an alarming surge in billionaire wealth. India's billionaire wealth increased by extraordinary 42.1% in 2024, achieving a total wealth of $905.6 billion, according to the UBS Billionaire Ambitions Report, and this ranks India as one of the third greatest billionaire hubs at the global levels after the US and China, respectively. Comparatively, across the last ten years, the billionaires in the country have significantly increased from being 85 persons to 185, while wealth has tripled and increased about 263 percent. In just the last year, India added 32 new billionaires, a 21% increase in the total number of billionaires. While India continues to struggle with widespread poverty, its billionaires are reaping enormous benefits from the country's economic structure.
This doesn’t even include regional inequality or as it is known in the west “the urban-rural divide”, which is a major issue in many countries like UK and India. The urban-rural divide in India is stark, with huge disparities in income, infrastructure, and opportunities. Even though 69% of the population lives in rural areas, the regions suffer from lower wages, limited amenities, and reduced economic prospects. Urban centers surge ahead, creating growing economic inequality that challenges inclusive national development.
The tech giants are at the heart of this growing concentration of wealth. Figures like Elon Musk, Jeff Bezos, and Mark Zuckerberg have seen their net worths surge, with Musk recently surpassing a net worth of $230 billion, while Bezos' wealth hovers around $219 billion. These men are not only the wealthiest on the planet—they are also becoming increasingly influential in shaping political and economic policies. Musk, Bezos, and Zuckerberg are likely to be among the closest people to Donald Trump during his inauguration, making the tech industry even more dominant in global politics. The influence of these billionaires over policy decisions points out how their fortunes are now inextricably linked to the political structures of the world.
As the billionaires amass fortunes at an alarming rate the reality for the world's poorest gets worse. According to Oxfam, extreme poverty could be eradicated three times faster, if inequality is tackled head-on. Yet the awareness of such inequality has increased, and that has not yet led to positive progress in terms of poverty reduction. The system still governs the world where the rich gets richer, and poor have little hope to be changed .Oxfam calls for bold solutions to redress this imbalance. Proposals include introducing wealth taxes, taming monopoly power, closing tax loopholes that favor the richest, and enacting policies that give workers more power in the economy. Such measures can help redistribute wealth in ways that promote fairness and economic stability for all, not just the elite few.As the conversation around inequality intensifies at forums like Davos, it is time to ask: will the world's leaders take action against the forces driving inequality, or will they continue to support policies that enrich the already powerful? The growing influence of billionaires in politics presents an urgent challenge to creating a more just and equitable society.We stand at a crossroads, and the choice we make may determine the future of our global economy. To allow wealth to be concentrated and locked up in the accounts of the tiny elite or tear apart the systems that permit this is now up to us. The need for change has never been clearer, and the time to act is now.
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