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Inequality Alarm

While wealth keeps piling up for a select few, poverty remains stubbornly unchanged
10:07 PM Jan 25, 2025 IST | Syeda Afshana
inequality alarm
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A recent report by Oxfam, titled Takers Not Makers, has once again revealed the staggering economic inequality that continues to shape our world. Released during the World Economic Forum in Davos, the report paints a bleak picture—while wealth keeps piling up for a select few, poverty remains stubbornly unchanged. Despite ambitious global targets like the UN’s Sustainable Development Goals (SDGs), which aim to eradicate extreme poverty by 2030, the numbers tell a different story. If things continue as they are, around 575 million people will still be trapped in extreme poverty by the end of the decade.

The report serves as a wake-up call, especially for countries like India, where inequality has reached unsettling levels.

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The figures from Oxfam’s report are eye-opening. In 2024 alone, billionaires around the world added a staggering $2 trillion to their wealth, with four new billionaires emerging every week. Their numbers jumped from 2,565 in 2023 to 2,769 in 2024, and their combined wealth soared from $13 trillion to $15 trillion in just a year. In the meantime, nearly half the world's population—about 3.5 billion people—still struggle in poverty, a figure that has barely moved since 1990.

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For perspective, the world’s ten richest men saw their wealth grow by an average of $100 million a day last year. If this trend continues, we might even see the world’s first trillionaires within the next decade.

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In India, the situation is no less concerning. Often celebrated as an emerging economic giant, the country continues to battle deep-rooted disparities in wealth and opportunity. According to Oxfam’s India Supplement, the top 1% of the population owns more than 40% of the country’s total wealth, while the bottom half struggles with just 3%. This stark divide isn’t just a coincidence; it’s the result of long-standing systemic issues that keep inequality alive and thriving.

Economic policies have largely favoured the wealthy, with tax breaks, subsidies and incentives designed to benefit large corporations and high-net-worth individuals, leaving little space for the redistribution of wealth. Access to education remains a privilege for the urban elite, while rural and marginalised communities are stuck with underfunded schools and high dropout rates, keeping them locked in cycles of poverty.

Healthcare is another example of inequality. Those who can afford it enjoy world-class facilities, while millions of others are forced to rely on an overstretched and minimal funded public healthcare system. Out-of-pocket expenses push millions into deeper poverty every year. Gender inequality adds another layer to the problem. Women in India earn far less than men and are often confined to unpaid domestic labour, with one of the lowest participation rates in the formal workforce globally.

Meanwhile, the urban-rural divide continues to widen, with cities enjoying better infrastructure and job opportunities while rural areas struggle with migration and unemployment. And, of course, caste-based discrimination still plays a major role, with lower-caste communities facing limited access to resources, education and jobs.

Tackling inequality in the country isn’t impossible, but it requires bold, systemic change. A more progressive tax system that places a fairer burden on the ultra-rich could be a good starting point. Things like wealth taxes and stronger inheritance taxes could help redistribute wealth more effectively. Investing in public services like healthcare, education and infrastructure is crucial to levelling the playing field, ensuring that basic opportunities are within everyone’s reach.

Discrimination—whether based on caste or gender—needs to be tackled head-on, with strict enforcement of anti-discrimination laws and affirmative action initiatives. Bridging the urban-rural divide is just as important, with more focus on rural infrastructure and agricultural reforms to prevent mass migration to cities. Expanding social safety nets through schemes like the Public Distribution System (PDS) and employment programs like MGNREGA can offer immediate relief to those who need it most.

At the end of the day, economic inequality isn’t just a numbers game. It’s a challenge that directly impacts people’s lives, opportunities and dignity. As Oxfam’s report highlights, extreme wealth concentration isn’t just unfair; it’s a threat to democracy, economic stability and social harmony.