(London) The inaction of governments in the face of inequalities which have worsened sharply since the pandemic is “shocking”, denounces the NGO Oxfam in a report published on Tuesday.
Posted at 7:48 p.m.
They show that “the poorest and most vulnerable have been hardest hit by the disease and its profound economic repercussions,” according to a statement accompanying the report.
The 2022 version of the Commitment to Reducing Inequalities Index (ERI, which measures the efforts of different countries around the world), published every two years, “clearly shows that most governments have not taken far-reaching concrete measures to mitigate this dangerous increase in inequality”.
Worse, “while this is the worst health emergency the world has seen in a century, half of low- and middle-income countries have cut their health spending during the pandemic”, and 70% their spending in education, denounces Oxfam.
Furthermore, “despite huge tax shortfalls and huge increases in the wealth of the wealthiest people and businesses during the pandemic, 143 out of 161 countries have not increased taxation of the wealthiest people and 11 countries have even cut taxes on the most advantaged,” Oxfam continues.
Norway, the best student, tops the rankings, followed by Germany, Australia, Belgium and Canada.
The top-ranked countries are all developed countries, which have more resources to devote to public policies to reduce inequalities, argues Oxfam.
Conversely, the “bad performers” are low-income countries largely affected by armed conflict and political instability, such as South Sudan, last in the ranking, or Nigeria, second from last.
“Among the progressing countries, there is a low-income country (Tajikistan, thanks to a strong increase in the collection of personal income tax) and four middle-income countries”, in particular Moldova, details Oxfam.
The countries showing the greatest deterioration include the Seychelles and the territory of Hong Kong in China. “Eight of the ten countries with the highest deterioration experienced a collapse in tax revenues, mainly due to the pandemic,” notes Oxfam.
The NGO warns that 263 million additional people will have fallen into extreme poverty by the end of the year.
The NGO also notes the burden of debt service for poor countries, which hinders them in the fight against inequality.
She calls on governments to act urgently at the risk of wasting a decade of efforts to reduce the wealth gap.
Oxfam notably recommends that governments “increase social spending, not reduce it”, “protect the rights of workers and provide them with salaries that allow them to live” above the poverty line.
“More than anything, they must significantly increase the taxes paid by the richest”, companies and individuals, concludes Oxfam.
The United Kingdom has thus been singled out by the International Monetary Fund (IMF) for the latest measures presented by the Conservative government of Liz Truss, accused of worsening inequalities through tax cuts targeting the wealthiest.
Last week, the Shell boss called for higher taxes on energy companies as a solution to the cost of living crisis triggered by soaring energy costs since the start of the war in Ukraine.