Oxfam’s latest report, known for unsettling complacent minds across the world, is once again before us. Released as a warning on the opening day of the World Economic Forum being held from 19 to 23 January, the report strips bare the reality of global economic development. A fundamental question confronts us: is economic prosperity measured through GDP actually succeeding in keeping the ordinary inhabitants of this planet alive with dignity? What does Oxfam’s report say on this?
Just four days ago, on 19 January 2026, ahead of the World Economic Forum meeting in Davos, Switzerland, the global non-governmental organisation Oxfam released its 2025 report titled "Resisting the Power of the Rich". The report exposes the historic rise in billionaire wealth and the deepening of inequality worldwide.
Once again, the report brings to the surface a truth of the contemporary world that is often concealed behind the glittering figures of development, Gross Domestic Product (GDP) and economic growth. It shows that despite rapid global economic expansion, the world economy is becoming increasingly unbalanced and unjust. Vast wealth is accumulating in the hands of a small number of extremely rich individuals, while millions continue to struggle with poverty, hunger and insecurity.
The most striking conclusion of this alarming account of global inequality is that over the past decade, billionaire wealth has not merely increased, but has grown at three times the pace. Since 2015, the richest one per cent of the world’s population has accumulated more than 33.9 trillion dollars in wealth. According to Oxfam, this amount is sufficient to eradicate global poverty. Yet nearly half of the world’s population remains poor, and global targets for poverty eradication continue to slip further out of reach. This contradiction underlines the reality that the present global economic system does generate wealth, but its benefits fail to reach the vast majority of society. Inequality is not only a social issue; it is also an economic problem that reduces purchasing power, weakens domestic demand and hampers long-term economic growth.
Another deeply troubling aspect of the report is the sharp reduction in foreign aid by developed countries, particularly the G7 bloc of political and economic powerhouses—Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. Compared to 2024, foreign aid allocations in the 2026 budgets of these countries are being cut by nearly 28 per cent, the largest reduction since 1960. Oxfam warns that this will have a direct and severe impact on healthcare services, malnutrition prevention and basic life-support programmes. It is estimated that these cuts could lead to the deaths of around 2.9 million additional people. This figure makes it clear that financial decisions are not merely budgetary exercises; they have a direct bearing on human lives.
Oxfam’s 2025 assessment also makes it clear that today’s food insecurity is not simply the result of a lack of resources. It is fundamentally a political and policy-driven problem. War, cuts in social welfare, and climate change together are pushing the world’s poorest people towards starvation. Despite adequate food availability, flawed policies and unequal distribution continue to keep millions hungry.
Oxfam India’s Special Report 2025 on India shows that this global trend manifests itself even more sharply within the country. During the Covid pandemic, while ordinary people faced severe declines in employment, healthcare access and social security, the wealth of India’s richest surged dramatically. According to the report, the top one per cent in India owns more than 40 per cent of the country’s total wealth, while the bottom 50 per cent holds only around three per cent. Just 21 billionaires possess wealth equivalent to that of over 700 million people.
These figures clearly demonstrate that wealth concentration in India has reached an extremely dangerous level. A major reason for this inequality lies in India’s reliance on an indirect tax-based system, particularly the Goods and Services Tax (GST). According to Oxfam India, the top 10 per cent of the rich contribute only about three per cent of total GST revenue, while the bottom 50 per cent accounts for nearly 64 per cent. This means that the poor and the middle class pay a far larger share of their income through indirect taxes, while the wealthy benefit from tax exemptions and avoidance mechanisms. This system is not only unjust; it actively deepens inequality.
Oxfam’s report concludes that excessive reliance on private finance has failed. Addressing the challenges of development and inequality is possible only if governments prioritise public services and policy reforms. This requires the implementation of progressive taxation on the wealthy, increased public investment in education, healthcare and social security, and policies designed to prevent excessive concentration of wealth.
When wealth and resources become confined to a few hands, the influence of corporate interests and the rich over policymaking intensifies. Policies tilted in favour of the wealthy result in reduced public investment, increased privatisation and weakened social security. In India, rising economic inequality poses a serious threat to democracy, social justice and sustainable development alike. If policies are not centred on inclusive growth, progressive taxation, robust public services and the interests of workers and farmers, this inequality could well lead to social upheaval.
Oxfam’s 2025 report is a warning that unless the current economic and policy direction is changed, inequality and poverty will deepen further. It reminds us that true development is that which combines economic growth with social justice. Otherwise, the widening gulf between the growing wealth of the rich and the worsening deprivation of the poor will only render the world more unstable.
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*Bargi Dam Displaced and Affected Association
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