Bridging the global inequality gap; Oxfam and Brookings way

“Government and companies must collaborate to drive an international initiative to promote a living wage for all workers in all countries and to close the gender pay gap.”

These are the words of Oxfam international executive director Winnie Byanyima at the World Economic Forum which is ongoing in Davos ,Switzerland  on dealing with the inequality challenge.

Inequality has been labeled as one of the major global risk and the inequality gap according to research by Oxfam International keeps widening.

“Since the turn of the century, the poorest half of the world’s population has received just 1% of the total increase in global wealth, while half of that increase has gone to the top 1%. The average annual income of the poorest 10% of people in the world has risen by less than $3 each year in almost a quarter of a century.” The report by Oxfam said.

Byanyima believes this phenomenon can be dealt with in two ways if governments and companies work towards more inclusive economies which ensures women are paid well and every workers earns a decent and acceptable wage.

She said the tax haven system which ensures big business keep all their money should be eradicated.

“In 2014 corporate investment in tax havens was almost four times bigger than it was in 2001. Increasingly business hides its money from being taxed.” Byanyima said.

She advocated sanctions for businesses which hide their profits under tax havens.

Another  research by brooking.edu/global has also revealed the extent the poverty gap would be bridged if billionaires donated their money to the poor.

The researchers identified some billionaires in developing countries and how they can improve the life of the poor in their countries  if they shared  half of the net worth.

The researchers claimed the situation could even be better in countries with more than one billionaire.