Spiralling inequality won’t fix itself. We need a movement | Inequality

As dozens of billionaires sip champagne and zip down the ski slopes at this year’s World Economic Forum in Davos, Switzerland, millions in Zambia endure the harsh realities of extreme poverty, with two-thirds of the country living on less than $2.15 a day – a fraction of the cost of a cappuccino in Davos.

These contrasting scenes underscore a grim reality: The world’s wealth is grotesquely concentrated in the hands of a few. According to a new Oxfam report out this week, the wealth of the world’s billionaires has risen three times faster in 2024 than the year prior; five are projected to become trillionaires within a decade.

The imbalance of wealth and power is particularly glaring in international spaces. One example is the recent UN climate change talks (COP29), where more than 1,700 lobbyists for the fossil fuel industry outnumbered almost every national delegation attending. Wealthy nations prioritized their own agendas. Unsurprisingly, the final commitments towards the climate made at COP29 fell $1 trillion short of what will be needed every year.

The international spaces of the World Bank and International Monetary Fund (IMF) are equally emblematic of the power imbalances that are driving inequality to new heights. Rich countries dominate both of these institutions, setting the rules of the international financial system in ways that serve their own banks and balance sheets.

Ninety-four out of 100 countries with current World Bank and IMF loans have cut investments in public education, health and social protection over the past two years. Around the world, 3.3 billion people now live in countries that spend more on debt repayments than on education or health.

The IMF and World Bank now acknowledge that inequality is a grave threat to economic stability, social cohesion, and democracy. Yet their actions fuel further imbalance, despite statements about tackling economic and gender inequality.

Not much has changed: The powerful make decisions; the marginalised pay the price. Money is flowing out of poor economies, in debt servicing, when it should be flowing in.

Meanwhile, corporate wealth continues to swell. Seven of the 10 largest companies on Earth are controlled by billionaires, their combined value surpassing the economies of Africa, Latin America, and the Caribbean. At the same time, the wages of nearly 800 million workers failed to keep up with inflation, resulting in an average annual loss equivalent to 25 days of income.

The most important step in any solution is to increase the taxes the super-rich must pay, an idea that gained significant traction at the G20 meetings in Brazil last year. Not all countries have billionaires, but every country has a rich elite. The richest 1 percent should be taxed the most everywhere, and taxes on the poorest should be reduced.

The revenue generated by these taxes should fund an increased investment in public services and climate action that benefits society: in education, healthcare, housing, and environmental protection, and in ensuring that the cost of living can become more reasonable.

One of the many social service initiatives that could benefit from the new tax revenue is cash transfer programs, which provide money directly to impoverished households. Research has found that these programs can help successfully mitigate the harshest effects of poverty, including the burdens of HIV/AIDS and tuberculosis, two diseases that hit the less wealthy parts of society the hardest.

We also need to make sure people can afford the medicines they need. New breakthroughs can prevent HIV transmission with shots just twice a year. But when used for treatment in the United States, they cost $40,000, when we know they could be just $40 if produced at scale. We need low-cost, effective generics in every low and middle-income country to curb new infections.

People across the world are pushing for alternatives to the current world order. If we fail to act, the consequences will be catastrophic: An entrenched billionaire class will continue to undercut democratic systems around the world; social unrest will continue to rise as millions lose hope for a fair future; and the climate crisis will spiral even further out of control. This is not a distant threat. It is happening now, and it will affect everyone on the planet. It is enough to take the fizz out of any glass of champagne – even those served in Davos.

The views expressed in this article are the author’s own and do not necessarily reflect Al Jazeera’s editorial stance.