Combat Editorial Inequality and lessons for Guyana

United Kingdom-based charity – OXFAM – recently disclosed that inequality has reached frightening levels. In a report titled “Survival of the Richest”, the charity disclosed that the world’s richest one (1) percent grabbed nearly two-thirds of all wealth created since 2020. According to OXFAM, billionaires earned US$1.7M for every US$1 earned by the poorest ninety-nine (99) percent of the world.

Billionaire wealth surged in 2022 with rapidly rising food and energy profits. The report shows that ninety-five (95) food and energy corporations have more than doubled their profits in 2022. They made $306 billion in windfall profits and paid out $257 billion (84 percent) of that to rich shareholders. The Walton dynasty, which owns half of Walmart, received $8.5 billion over the last year. Indian billionaire Gautam Adani, owner of major energy corporations, has seen this wealth soar by $42 billion (46 percent) in 2022 alone. Excess corporate profits have driven at least half of inflation in Australia, the US and the UK.

At the same time, at least 1.7 billion workers now live in countries where inflation is outpacing wages, and over 820 million people - roughly one in ten people on Earth - are going hungry. Women and girls often eat least and last and make up nearly 60 percent of the world’s hungry population. The World Bank says we are likely seeing the biggest increase in global inequality and poverty since World War Two (WWII). Entire countries are facing bankruptcy, with the poorest countries now spending four times more repaying debts to rich creditors than on healthcare. Three-quarters of the world’s governments are planning austerity-driven public sector spending cuts —including on healthcare and education— by $7.8 trillion over the next five years.

Alongside OXFAM’s findings, the International Labour Organisation (ILO) also has painted a dire picture. In its World Employment and Social Outlook Report 2023, the organisation found 205 million people globally were unemployed. Additionally, a further 268 million people did not have the skills to gain employment. Moreover, some 2 billion workers globally were engaged in informal employment. Such employment sees workers without any sort of protection and usually in exploitative and oppressive conditions. The ILO also shared that they were 214 million workers living in extreme poverty. It warned that the situation was grower dire as price increases were stripping workers of their purchasing power.

In Guyana, the situation does not appear as acute as the global stage. The country has led the world in economic growth over the past two (2) years and significant resources are being expended to improve the quality of life. This is a welcome development. At the same time, we cannot turn a blind eye to what is taking place globally. Informal employment still remains a serious concern in our country.

Though official statistics are dated, it is estimated that a large number of workers do not benefit from formal employment which enables them certain protections and safeguards. At the same time, inequality can become a serious concern given the rapid expansion of the economy. There is a need to ensure that we seek to avoid the pitfalls of other countries that have treaded similar paths. We are too small of a nation to be divided by the haves and have-nots.