War, climate change, inflation – millions of people are at risk of sliding into poverty because of the parallel global crises. Germany's Vice Chancellor Habeck warned in Davos of a global recession.
< p>Before the start of the World Economic Forum in Davos, the development organization Oxfam denounced “growing social inequality”. While more than a quarter billion people were at risk of falling into extreme poverty this year, corporations and their investors made huge profits, according to a report published on Monday.
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Gabriela Bucher: Every 33 hours one million people fall into extreme poverty
According to the Oxfam organization, the richest in the world have become even richer since the beginning of the corona pandemic. The wealth of billionaires has grown by 42 percent. At the same time, more than a quarter billion people worldwide are at risk of slipping into extreme poverty this year. Companies in the food, pharmaceutical, energy and technology sectors in particular have made enormous profits. Of the almost 2,670 billionaires worldwide, 573 have been added since the beginning of the pandemic. According to Oxfam, their combined fortune has grown to $12.7 trillion in the past two years; their share of global gross national product has tripled since 2000 to currently 13.9 percent.
Heavier taxation for the super-rich as a solution?
The emergency aid and development organization Oxfam called for higher taxation of companies and very high assets. “It is unacceptable that corporations and the billionaires behind them are making record profits while millions of people are skipping meals, turning off the heat, falling behind on their bills and wondering what to do next to survive “, said Manuel Schmitt, consultant for social inequality at Oxfam Germany.
The leading ones come from Davos in Switzerland leaders of politics and business together
Governments urgently need to take countermeasures and hold corporations and the super-rich to account. Wealth tax must be reintroduced in Germany. In addition, a one-off tax on very high assets and an excess profit tax for corporations are announced. Oxfam also called for companies to be more committed to sustainability. Among other things, they should disclose how much they invest in respecting human rights and protecting the environment.
Government debt promotes inequality
Inequality between countries is also increasing again. More than every second low-income country will soon no longer be able to repay its debts. “Right now, low-income countries are suffocating under their debt burdens, and global inequality and poverty are exploding,” said Schmitt.
The rising prices and the debt problem are currently being fueled by the Russian war in Ukraine. The consequences of the war should also have a strong impact on the World Economic Forum – the third global crisis alongside the corona pandemic and climate change. Among other things, the effects on supply chains, energy supply and food security will be discussed.
Habeck first German speaker
In his speech, the German Vice Chancellor Robert Habeck (Greens) referred to the risk of a global recession. There are currently at least four interconnected crises, he said in Davos. Specifically, he mentioned high inflation in many countries, an energy crisis, food shortages and the climate crisis. “We cannot solve the problems if we only focus on one of the problems,” warned Habeck. “But if none of the problems are solved, then I'm really concerned that we're moving into a global recession.”
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Robert Habeck: We have four intertwined crises< /h2>
Habeck warned that there should be no turning away from global markets. If every country only takes care of itself, that will exacerbate the crisis. “We have to keep the markets open,” said the Economics Minister. At the same time, however, the rules of the markets would have to change. It's not about de-globalization, but about more cooperation and solidarity.
Chancellor Olaf Scholz (SPD) is expected in Davos on Thursday. So far, he is the only G7 head of government who has agreed to attend. Also announced are NATO Secretary General Jens Stoltenberg, EU Commission President Ursula von der Leyen and ECB President Christine Lagarde.
Because of the war, unlike usual, no Russian delegation will take part in the annual conference. Numerous Ukrainian politicians and foundations are represented. Traditionally, the meeting of the World Economic Forum actually takes place in mid-January, but it was postponed due to the corona pandemic. In January, the foundation brought managers together digitally instead. Last year, too, the World Economic Forum could only take place digitally.
nm/hb (dpa, kna)