World's 85 richest people have as much money as the poorest half

People gathered in Spain almost one year ago to protest austerity measures and political corruption. 8 out of 10 Spanish people now believe rules are made in favour of the wealthy. (Photo: Popicinio)

The report from the charity reveals the extent of economic imbalance across the world, with the wealthiest 85 people sharing a combined £1 trillion, which is the same as the world's poorest 3.5 billion people. Moreover, the amount of wealth controlled by the top 1 per cent of the world's financial population is the equivalent of 65 times that controlled by the poorest half of the world.

The study breaks down the wealth imbalance of each country too. In the US, the wealthiest 1 per cent has captured 95 per cent of post-financial crisis growth since 2009, while the bottom 90 per cent became poorer. Australia, Sweden and Norway follow as the countries where the richest 1 per cent have the biggest share of income.

"Extreme economic inequality is damaging and worrying for many reasons: it is morally questionable; it can have negative impacts on economic growth and poverty reduction; and it can multiply social problems. It compounds other inequalities, such as those between women and men," warns Oxfam in the report ("Working for the Few") released yesterday.

Oxfam's report arrives ahead of this week's World Economic Forum, calling for a united effort to embrace progressive taxation systems and clamp down on those avoiding taxes.

Opinion polls conducted by the charity also found that many believe laws and regulations are now designed to benefit the rich.

A survey in Spain, Brazil, India, South Africa, the UK and the US found that a majority of people believe that laws are skewed in favour of the wealthy, with 8 out of 10 people in Spain agreeing with that
statement. In the UK, 67 per cent agreed that "the rich have too much influence over where this country is headed", notes The Guardian.

"Oxfam is concerned that, left unchecked, the effects are potentially immutable, and will lead to ‘opportunity capture’ – in which the lowest tax rates, the best education, and the best healthcare are claimed by the children of the rich," adds the charity. "This creates dynamic and mutually reinforcing cycles of advantage that are transmitted across generations."