Wealth inequality has soared globally in the past three years, with the annual salaries of the world's five richest men jumping from $405 billion in 2020 to $869 billion in 2023: a 114% increase.
It is likely that one of these fortunes could pass the trillion-dollar mark for the first time in ten years, according to a report published by Oxfam. Meanwhile, it will take an estimated 229 years to eradicate poverty globally.
Seven in ten major global companies are run by a billionaire, and 48 of these companies have increased their profits by 52% in the past three years. While shareholders enjoy record-breaking profits, around 443 million European citizens working for the same companies have seen their earnings decrease (taking inflation into account) during the same period.
In addition to exacerbated wealth inequality within Europe, Oxfam highlights the broadening gap between Western countries and the Global South: 69% of global wealth is in the hands of the former. The NGO is highly critical of these trends, warning that the "inexhaustible wealth" of a select few comes "at the expense of society as a whole."
"Runaway corporate and monopoly power is an inequality-generating machine," Oxfam policy advisor Julien Desiderio said. He highlighted the fact that the unbridled economic power of the super-rich "undermines our democracies and our rights" in reference to the influence monopolies exercise on legislation across Europe.
"No company or individual should have so much power over our economies and our lives. In fact, no one should have a billion dollars."
Belgium no exception
Inequality is as pronounced in Belgium as on a global scale. The richest 1% of Belgians hold almost a third (30.4%) of financial assets, and the richest 10% own 79% of listed shares. The top 0.18% of the population possess more wealth than the poorest half. It would take more than 170 years for a Belgian on the median wage to match the salary of AB InBev CEO Michel Doukeris, who earned €7.2 million in 2022.
Oxfam has recommended a set of measures for the next Belgian government to implement to curb "super-profits" and their damaging effects. It says shareholder profits must be made conditional upon a decent income for all workers. The State must also guarantee universal healthcare and education alongside robust public services for energy and transport.
The NGO also advocates a wealth tax on both high-earning individuals and companies. This should focus on capital gains, dividends and surplus profits. It forecasts that by limiting CEO salaries and implementing legislation to ensure a fairer distribution of wealth, the State could collect up to €20 billion in tax annually.
