This is capitalism - World's 85 richest people own nearly half of global wealth // World's rich threaten democracy says Oxfam in pre-Davos report

A tiny elite comprising the richest 85 individuals hold wealth equivalent to that owned by the bottom half of the world's population, a report says.The report by worldwide development organisation Oxfam, titled 'Working For the Few', published ahead of the World Economic Forum meet in Davos, details the impact that widening inequality is having in both developed and developing nations.

"Wealthy elites have co-opted political power to rig the rules of the economic game, undermining democracy and creating a world where the 85 richest people own the wealth of half of the world's population," Oxfam claimed. It further added that since the late 1970s, tax rates for the richest have fallen in 29 of the 30 countries for which data are available, meaning that in many places the rich not only get more money but also pay less tax on it. As per the report, in the last 25 years wealth has become even more concentrated in the hands of fewer people so much so that one per cent of the world's families own almost half (46 per cent) of the world's wealth. Oxfam wants governments to take urgent action to reverse the trend. It is asking those attending the World Economic Forum (WEF) to make six-point personal pledge to tackle the problem. "It is staggering that in the 21st Century, half of the world's population own no .. more than a tiny elite whose numbers could all sit comfortably in a single train carriage," Oxfam Executive Director Winnie Byanyima said.

The report alleged that the richest individuals and companies in the world hide trillions of dollars away from the tax man in a web of tax havens around the world. "It is estimated that $21 trillion is held unrecorded and off-shore," it said.

The report further added that in India, the number of billionaires increased tenfold in the past de .. past decade, aided by a highly regressive tax structure and the wealthy exploiting their government connections, while spending on the poorest remains remarkably low.

Moreover, seven out of ten people live in countries where economic inequality has increased in the last 30 years. Besides, the richest one per cent increased their share of income in 24 out of 26 countries for which we have data between 1980 and 2012. The richest one per cent increased their share of income in 24 out of 26 countries for which we have data between 1980 and 2012. The richest one per cent increased their share of income in 24 out of 26 countries for which we have data between 1980 and 2012. 

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World's rich threaten democracy says Oxfam in pre-Davos report

PARIS: The world's elite have rigged laws in their own favour undermining democracy and creating a chasm of inequality across the globe, charity Oxfam said in advance of the annual get-together of the world's most powerful at Davos. Inequality has run so out of control, that the 85 richest people on the planet "own the wealth of half the world's population," Oxfam said in an introduction to a new report on widening disparities between the rich and poor. 
The report exposes the "pernicious impact" of growing inequality that helps "the richest undermine democratic processes and drive policies that promote their interests at the expense of everyone else", the statement said. 

Inequality has recently emerged as a major concern in countries around the world, with US President Obama prioritising a push to narrow the wealth gap in his second term. In China, the new government there has cracked down on the elite perks and privileges and Germany seems set to adopt a minimum wage. The World Economic Forum, which organises the Davos talkfest, warned last week that the growing gulf between the rich and the poor represents the biggest global risk in 2014. "The chronic gap between the incomes of the richest and poorest citizens is seen as the risk that is most likely to cause serious damage globally in the coming decade," the WEF said. 

But many of the corporate giants and world leaders set to confer at Davos, a posh ski resort tucked on the eastern reaches of Switzerland near Liechtenstein, are implicitly pointed at by Oxfam. "Policies successfully imposed by the rich in recent decades include financial deregulation, tax havens and secrecy, anti-competitive business practice, lower tax rates on high incomes and investments and cuts or under-investment in public services for the majority," Oxfam said. 

WEF however has decided to put the inequality theme up front during the five-day event with closed doors seminars and public key talks scheduled to mull over the hot-button issue. In the forefront will be Australia's Prime Minister Tony Abbott. Sydney has just taken on the G20 presidency, and in a speech on Thursday Abbot should tackle the rich and poor gap issue, with the fight against tax havens and evasion firmly on target. In the report, Oxfam said that "since the late 1970s, tax rates for the richest have fallen in 29 of the 30 countries for which data are available, meaning that in many places the rich not only get more money but also pay less tax on it." 

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