In a report published on Tuesday, the NGO "Oxfam" denounced the failure of governments to act in the face of inequality that has worsened sharply since the outbreak of the Covid epidemic.

A statement accompanying the report stated that "the poorest and most vulnerable were the most affected by the disease and its deep economic repercussions." And the 2022 edition of the Reducing Inequality Commitment Index (ERI) (which measures the efforts of countries around the world), published every two years, “clearly shows that most governments have not taken concrete, long-term measures to mitigate this dangerous increase in inequality.”

"Although this is the worst health emergency the world has seen in a century, half of the low- and middle-income countries have reduced their spending on health during the pandemic," and reduced 70 percent of their spending on education, Oxfam noted.

Moreover, the organization explained that “despite the massive tax shortfalls and massive increases in the wealth of the wealthiest people and companies during the pandemic, 143 out of 161 countries did not raise taxes on the rich, and 11 countries even lowered taxes on them.”

Norway topped the index as the best performing country when it came to tackling inequality.

It was followed by Germany, Australia, Belgium and Canada. France ranked 12th, while Britain ranked 14th.

Oxfam explained that the countries that ranked first are all developed countries, which have more resources to allocate to public policies to reduce inequality.

Conversely, low-income countries that are most affected by armed conflict and political instability, such as South Sudan, rank last, or Nigeria second-to-last.

Among the countries "which are experiencing progress in this area" are low-income countries (such as Tajikistan, thanks to a strong increase in personal income tax collection) and four middle-income countries, in particular Moldova.

The countries with the largest deterioration include the Seychelles and Hong Kong in China. Oxfam noted that "eight of the ten countries that saw the highest deterioration in their rates experienced a collapse in tax revenues, mainly due to the epidemic."

The organization warned that an additional 263 million people will find themselves in extreme poverty by the end of the year.

It also called on governments to act urgently to counter the risks of missing a decade of efforts to reduce the wealth gap.

In particular, Oxfam recommended that "governments increase social spending, not reduce it" and "protect the rights of workers and provide them with wages that allow them to live" above the poverty line.

"More than anything else, the taxes paid by the richest must be increased dramatically," the organization said, as well as businesses and individuals.

 Source: AFP