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A staggering 60% of countries that receive subsidies or loans from the International Monetary Fund or the World Bank have widening or widening income inequality, an analysis by Oxfam International has found.
Of those 106 countries, 64 have high or widening income inequality, the nonprofit said. Standards are considered high if the Gini coefficient (a measure where 0 represents perfect equality and 1 represents perfect inequality) exceeds 0.4. Warning mark established by the United Nations.
Oxfam’s analysis found that 42 countries, including Ghana, Honduras and Mozambique, have high income inequality, and 37 countries, including Burkina Faso, Burundi, Ethiopia and Zambia, have seen income inequality increase over the past decade.
“The IMF and World Bank say tackling inequality is a priority, but they also support policies that widen the gap between the wealthy and everyone else. “This high-stakes hypocrisy must end as we struggle more and more each day to make up for cuts to funding for health, education and transport,” said Kate, director of Oxfam International’s Washington DC office. Donald said.
Calling the World Bank’s agreement to reduce inequality for the first time since its founding in 1944 a “groundbreaking move,” he added, “But if the Bank is serious about tackling inequality, its first test will be to It will make headlines,” he added. It prioritizes lending to the world’s poorest countries and is currently being discussed at its spring meetings. ”
The IMF and World Bank Spring Meetings will be held from Monday to Saturday (April 15-20) in Washington, DC, with major events starting on Wednesday.
Donor contributions to the World Bank’s International Development Association (IDA), which provides grants and low-interest loans to the world’s poorest countries, more than half of which are in Africa, continue to decline despite growing need, according to a release from Oxfam. It has leveled off in recent years.
World Bank President Ajay Banga called on donor governments to make the next IDA capital increase “the largest in history,” saying this was important given the debt crisis facing low-income countries.
Oxfam said rising debt and interest payments were diverting resources from critical areas such as public education and health care. “Based on World Bank analysis, Oxfam finds that half of IDA-eligible countries are insolvent and almost half (45%) of their debt needs to be canceled,” the release said.
The group said IDA’s funding shortfall could be addressed by increasing taxes on the income and assets of the world’s ultra-rich, potentially raising trillions of dollars. He said the money could also be used to help countries finance their development and combat the effects of climate change.
Oxfam says the meeting of G20 finance ministers during the spring meetings could be key, with current G20 chair Brazil calling for a global plan to ensure fair tax payments for the world’s ultra-wealthy. He said that France also supports this call.
The nonprofit said any global agreement would need to ensure high enough tax rates for the ultra-wealthy to eliminate inequality. As an example, he said reducing the wealth of billionaires would require an annual net worth tax of more than 8%.
“We cannot accept the excuse that we can’t afford it. The money is there, it’s just not going where it’s needed. We need donor governments to step up their contributions to IDA and the G20 to provide urgent funding. Advancing a global agreement to tax the super-rich is all part of ensuring rich countries and wealthy people pay their fair share to tackle inequality and climate change. said Ms. Donald.
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