The Strategist

Oxfam: Inequality in developed countries is growing

08/23/2019 - 10:33

Oxfam NGOs found that the poorest part of the population (20%) accounts for only 5% of the paid remuneration on average in the seven most developed countries in the world. At that, 20% of the richest people account for 45%. The organization believes that such a distribution resulted from policies of these countries.

Inequality continues to grow among the population of the G7 countries (USA, Germany, Japan, Great Britain, France, Italy and Canada), the international non-governmental organization Oxfam says in its latest report dedicated to the G7 summit of the leaders of the countries.

“Income inequality has only been growing in the G7 countries since the 80s of the last century. The poorest part of the population, which makes up 20% of the total population, accounts for an average of only 5% of the cash remuneration paid. At the same time, those 20% of the population who are among the richest account for approximately 45% of this financial flow,” the report says. Economic stagnation and lower wage levels only increased that part of the G7 countries which is at risk of being trapped in poverty. It currently stands at 9% in Germany, over 7% in France, 12% in Italy and about 9% in the UK.

The reason for this, according to the authors of the report, was the socio-economic policy in the G-7 countries, which depends on the power of corporations and owners of the largest capitals.

“This leads to neglect of the need to make a contribution to social spheres, and to a reduction in budget financing of social services. In addition, under the pretext of the need for austerity measures and the consolidation of state and budgetary debts, there are numerous negative effects of reforms and privatization,” the organization’s experts say.