An analysis conducted by Oxfam International has shed light on the prevailing issue of income inequality across countries receiving loans or grants from the International Monetary Fund (IMF) and World Bank. The report indicates that 60% of these nations are grappling with either high levels of income inequality or a concerning upward trend in inequality.
Using the Gini coefficient as a metric, which considers a value above 0.4 as a warning sign according to the United Nations, Oxfam's study revealed that out of 106 countries under review, 64 are experiencing significant income inequality or witnessing its escalation.
The study identifies 42 countries, including Ghana, Honduras, and Mozambique, as grappling with high-income inequality, while inequality has surged in 37 countries like Burkina Faso, Burundi, Ethiopia, and Zambia over the past decade.
Kate Donald, heading Oxfam International's Washington DC Office, criticized the IMF and World Bank for purportedly advocating inequality reduction while endorsing policies that widen the wealth gap. She emphasized the plight of ordinary citizens facing challenges due to cuts in public funding for essential services like healthcare and education.
Amidst the ongoing Spring Meetings, where officials from the IMF and World Bank convene to discuss global economic matters, Oxfam urged for prioritization of inequality reduction in the World Bank's lending to the world's poorest countries, labeling it a 'landmark move'.
Oxfam also highlighted the slowdown in donor contributions to the World Bank's International Development Association (IDA), especially detrimental to Africa amidst debt crises. The organization proposed boosting funds through increased taxation on the super-rich, presenting an opportunity to generate substantial resources for development and climate change initiatives.
During the Spring Meetings, the G20 Finance Ministers were urged by Oxfam to endorse measures supporting fair taxation of the wealthy. Brazil, holding the G20 Chair, has advocated for a global plan in this regard, supported by France.
The call for a global agreement imposing significant taxes on the super-rich to curb inequality was underscored by Oxfam, emphasizing the availability of funds and the need for their directed allocation towards critical areas.
In summary, Oxfam stresses the urgency for donor governments to enhance contributions to IDA and for the G20 to advance a global tax framework targeting the super-rich, essential steps in addressing inequality and climate challenges.
