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Wednesday, 21 January 2015 20:22

World Economic Forum 2015.

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Income Inequality is causing a problem.

World Economic ForumThe World Economic Forum is taking place in Davos-Klosters in Switzerland this week on 21st until 24th January 2015.  Our own Taoiseach, Enda Kenny, is speaking at it.

You can see a video at the end of this article.  Go to 6.15 and 38.30 for Mr Kenny.  There are five reports for you to download at the end of the article just above my photo.

The Global Agenda 2015 features an analysis of the Top 10 trends which will preoccupy experts for the next 12-18 months as well as the key challenges facing the world’s regions, an overview of global leadership and governance, and the emerging issues that will define our future.  The 10 trends are:

 

  1. Deepening Income inequality
  2. Persistent jobless growth
  3. Lack of leadership
  4. Rising geostrategic competition
  5. The weakening of representative democracy
  6. Rising pollution in the developing world
  7. Increasing occurrence of severe weather events
  8. Intensifying nationalism
  9. Increasing water stress
  10. Growing importance of health in the economy

I began to think about item one above, income inequality.  Did you know that:

  • By 2016, 1% of the world’s population will own more wealth than the other 99%.
  • The share of the world’s wealth owned by the best-off 1% has increased from 44% in 2009 to 48% in 2014, while the least well-off 80% currently own just 5.5%.
  • Oxfam predicted that, on current trends, the richest 1% would own more than 50% of the world’s wealth by 2016.
  • The executive director of Oxfam International, Winnie Byanyima, and one of the six co-chairs at this year’s WEF, said the increased concentration of wealth seen since the deep recession of 2008-09 was dangerous and needed to be reversed.  She said “The message is that rising inequality is dangerous. It’s bad for growth and it’s bad for governance. We see a concentration of wealth capturing power and leaving ordinary people voiceless and their interests uncared for.”
  • An Oxfam report in 2014 said that the 85 richest people in the world are as wealthy as the poorest half of the world.  While they don’t travel by bus, all 85 of them could squeeze into one.
  • More than a third of the 1,645 billionaires listed by Forbes inherited some or all of their riches, while 20% have interests in the financial and insurance sectors, a group which saw their cash wealth increase by 11% in the 12 months to March 2014.
  • Those 85 people have a combined wealth of more than one trillion pounds sterling. That is as much as the poorest 3.5 billion people in the world.
  • The combined wealth of the 1% richest is $110 trillion.  That is 65 times as much as the poorest half of the world.  Oxfam fears that this concentration of economic resources is threatening political stability and driving up social tensions.
  • Working for the FewWorking for the FewOxfam also argues that this is no accident either, saying growing inequality has been driven by a "power grab" by wealthy elites, who have co-opted the political process to rig the rules of the economic system in their favour.
  • Working for the FewWorking for the FewTwo-thirds of people questioned in Britain - believe that “the rich have too much influence over where this country is headed". 37% said that they agreed "strongly" with the statement - against just 10% who disagreed, 2% of them strongly.
  • Research by the Equality Trust, which campaigns to reduce inequality in the UK, found that the richest 100 families in Britain in 2008 had seen their combined wealth increase by at least £15bn, a period during which average income increased by £1,233. Britain’s current richest 100 had the same wealth as 30% of UK households,
  • Opinion polls in Spain, Brazil, India, South Africa, the US, UK and Netherlands found that a majority in each country believe that wealthy people exert too much influence. Concern was strongest in Spain, followed by Brazil and India and least marked in the Netherlands.
  • The IMF managing director Christine Lagarde and Pope Francis have been among those warning that rising inequality will damage the world economy if left unchecked.
  • Barack Obama’s penultimate State of the Union address yesterday was dominated by the issue of income inequality.  "It has been, and still is, a hard time for many," President Obama said. "But tonight, we turn the page."

 

OxfamOxfam said it was calling on governments to adopt a seven point plan:

  • Clamp down on tax dodging by corporations and rich individuals.
  • Invest in universal, free public services such as health and education.
  • Share the tax burden fairly, shifting taxation from labour and consumption towards capital and wealth.
  • Introduce minimum wages and move towards a living wage for all workers.
  • Introduce equal pay legislation and promote economic policies to give women a fair deal.
  • Ensure adequate safety-nets for the poorest, including a minimum-income guarantee.
  • Agree a global goal to tackle inequality.

Maude Barlow is the National Chairperson of the Council of Canadians and chairs the board of Washington-based Food and Water Watch. She is a board member of the San Francisco–based International Forum on Globalization and a Councillor with the Hamburg-based World Future Council.  She has 11 honorary doctorates as well as many awards.

Maude BarlowMaude BarlowMAUDE B ARLOW: On the eve of the G20 gathering, she said let’s look at a few facts.

Fact: the world has divided into rich and poor as at no time in our history. The richest two percent own more than half the household wealth in the world. The richest ten percent hold 85 percent of total global assets. And the bottom half of humanity owns less than one percent of the wealth in the world. The three richest men in the world have more money than the poorest forty-eight countries.

Fact: while those responsible for the 2008 global financial crisis were bailed out and even rewarded by the G20 governments’ gathering here, the International Labor Organization tells us that in 2009, 34 million people were added to the global unemployed, swelling those ranks to 239 million, the highest ever recorded. Another 200 million are at risk in precarious jobs, and the World Bank tells us that at the end of 2010, another 64 million will have lost their jobs. By 2030, more than half the population of the megacities of the Global South will be slumdwellers with no access to education, healthcare, water or sanitation.

Fact: global climate change is rapidly advancing, claiming at least 300,000 lives and $125 billion in damages every year. Called the silent crisis, climate change is melting glaciers, eroding soil, causing freak and increasingly wild storms, displacing untold millions from rural communities to live in desperate poverty in peri-urban centers. Almost every victim lives in the Global South in communities not responsible for greenhouse gas emissions and not represented here at this summit. The atmosphere has already warmed up a full degree in the last decades, several decades, and is on course to warm up another two degrees by 2100.

Fact: half the tropical forests in the world, the lungs of our ecosystem, are gone. By 2030, at a present rate of extraction or so-called harvest, only ten percent will be left standing. Ninety percent of the big fish in the sea are gone, victim to wanton predatory fishing practices. Says a prominent scientist studying their demise, there is no blue frontier left. Half the world’s wetlands, the kidneys of our ecosystem, have been destroyed in the twentieth century. Species extinction is taking place at a rate 1,000 times greater than before humans existed. According to a Smithsonian science, we are headed toward of biodiversity deficit in which species and ecosystems will be destroyed at a rate faster than nature can replace them with new ones.

Fact: we are polluting our lakes, rivers and streams to death. Every day, two million tons of sewage and industrial agriculture waste are discharged into the world’s water. That’s the equivalent of the entire human population of 6.8 billion people. The amount of wastewater produced annually is about six times more water than exists in all the rivers of the world. We are mining our groundwater faster than we can replenish it, sucking it to grow water-guzzling, chemical-fed crops in deserts or to water thirsty cities who dump an astounding 700 trillion liters of land-based water into oceans every year as waste. The global mining industry sucks up another 800 trillion liters, which it also leaves behind as poison. And fully one-third of global water withdrawals are now used to produce biofuels, enough water to feed the world. Nearly three billion people on our planet do not have running water within a kilometer of their home, and every eight seconds, somewhere in our world, a child is dying of waterborne disease. The global water crisis is getting steadily worse, with reports of countries, from India to Pakistan to Yemen, facing depletion. The World Bank says that by 2030, demand for water will outstrip supply by 40 percent. This may sound just like a statistic, but the suffering behind that is absolutely unspeakable.

Fact: knowing there will not be enough food and water for all in the near future, wealthy countries and global investment pension and hedge funds are buying up land and water, fields and forests in the Global South, creating a new wave of invasive colonialism that will have huge geopolitical ramifications. Rich countries faced by food shortages have already bought up an area in Africa alone more than twice the size of the United Kingdom.

Now, I don’t think I exaggerate if I say that our world has never faced a greater set of threats and issues than it does today. So, what are the twenty leaders who have gathered here, some already here and the others coming in tonight, what are they going to talk about over the next two days? By the way, their summit costs a million dollars a minute. And, by the way, we figure that it’s going to be closer to $2 billion when it’s finished, and the annual budget to run the United Nations is $1.9 billion. I assure you, they are not going to tackle the above issues in any serious way. The declarations have already been drafted, the failures already spun. Instead, this global royalty, who have more in common with one another than they do with their own citizens and are here really to advance the issues and interests of their class, are also here just to advance the status quo that serves the interests of the elite in their own countries and the business community or the B20, the new term, a community that will get private and privileged access to advance their free market solutions to these eager leaders. The agenda is more of the bad medicine that made the world sick in the first place: environmental deregulation, unbridled financial speculation, unlimited growth, unregulated free trade, relentless resource exploitation, tax cuts for the wealthy, cuts to Social Security, and a war on working people — in other words, savage capitalism.

Now, let’s look at our own country here and the assault that has been launched on the work of generations of Canadians toward a just society. Stephen Harper’s government has cut the heart out of any group that dissents, from First Nations people to women, to international agencies and church groups like KAIROS, Alternative, and the Canadian Council for International Cooperation.

 

Read 26280 times Last modified on Tuesday, 03 February 2015 20:23
Robert Tallent

Bob is a Management Consultant, Mentor and Trainer. He is also an Entrepreneur from 1983 to the present day. Between 1983 and 1995 he ran four businesses with a turnover in excess of £1m. As well as having an Honours Degree in Business Studies, he is also an Industrial Engineer and managed a large department in a multinational with large budgets and responsibilities.

He studied to become a Management Consultant, Mentor and Trainer and setup The Synergy Group in 1995.

He has a huge range of business and management experience in practically every industry.

Call him privately on +353(0)87 232 6927

or email him on bob@synergy.ie

Main land line is +353(1) 821 5189

Website: www.synergy.ie

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