International ReportsImportant2025-01-20

Oxfam Global Inequality Report 2025

Q: With reference to the Oxfam 'Takers not Makers' 2025 report, which of the following statements is/are correct? 1. The report states that the majority of billionaire wealth is earned through innovation and entrepreneurship. 2. It projects the emergence of the world's first trillionaires within a decade.

2 only — Statement 1 is incorrect because the report explicitly states that 60 percent of billionaire wealth is unearned (driven by inheritance, cronyism, or monopolies). Statement 2 is correct, as the report predicts five trillionaires within a decade.

In News

What Happened

On January 20, 2025, Oxfam International released its annual inequality report titled 'Takers not Makers' ahead of the World Economic Forum in Davos. The report revealed that global billionaire wealth rose three times faster in 2024 than in 2023, with five trillionaires expected within a decade. It highlighted that 60 percent of this wealth is unearned, stemming from inheritance, cronyism, corruption, or monopoly power.

Why It Matters

For India, this report underscores the challenges of crony capitalism and the concentration of wealth in a rapidly growing economy. It highlights the urgent need for progressive taxation and policies that ensure inclusive growth rather than disproportionately benefiting a small corporate elite.

Background

History & Context

Oxfam has traditionally released a global inequality report just before the annual World Economic Forum gathering in Davos, Switzerland, to highlight systemic wealth disparities. Previous reports, such as 'Inequality Inc.' in 2024 and 'Survival of the Richest' in 2023, focused heavily on corporate power and post-pandemic wealth surges. The 2025 'Takers not Makers' report introduces a strong anti-colonial lens, arguing that the modern financial system continues historical patterns of wealth extraction from the Global South to the Global North.

What Changed

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Wealth Accumulation Pace: BEFORE, billionaire wealth was growing at a steady post-pandemic rate; NOW, billionaire wealth rose three times faster in 2024 than in 2023.
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Source of Wealth Analysis: BEFORE, wealth accumulation was largely attributed to corporate profits and stock market gains; NOW, the report specifically classifies 60 percent of billionaire wealth as 'unearned', driven by inheritance, cronyism, or monopolies.
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North-South Extraction: BEFORE, the global economic divide was often framed around unequal trade terms; NOW, Oxfam explicitly labels the current system as modern colonialism, stating it extracts 30 million USD an hour from the Global South to the richest 1 percent in the Global North.
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Extreme Wealth Milestones: BEFORE, the focus was on the growing number of billionaires; NOW, the report projects that the world will see its first five trillionaires within a decade.

Prelims Angle

NCERT Connection

This connects to Class 11 Indian Economic Development, Chapter 3 (Liberalisation, Privatisation and Globalisation: An Appraisal). The chapter discusses how globalisation and economic reforms can lead to uneven growth and concentration of wealth, which Oxfam's findings on crony capitalism and monopolies perfectly illustrate.

Practice Questions

Q1

Correct Statement(s)

With reference to the Oxfam 'Takers not Makers' 2025 report, which of the following statements is/are correct? 1. The report states that the majority of billionaire wealth is earned through innovation and entrepreneurship. 2. It projects the emergence of the world's first trillionaires within a decade.

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