The Equality Index 2024
Sweden still worst in the Nordics at fighting inequality
Sweden has fallen 14 places in 4 years in the global Commitment to Reducing Inequality Index (CRII) produced by Oxfam in partnership with Development Finance International. The index ranks 164 countries according to policy decisions and their impact on inequality, based on three areas that are crucial to reducing economic inequality: tax policy, investment in welfare, and workers' rights. Since the last survey two years ago, Sweden has dropped 4 places and is now in 24th position, still the worst in the Nordic region.
→ Sweden ranked worst in the Nordics at fighting inequality
Two years ago, in 2022, Sweden was in 20th place and was already the worst ranked of the Nordic countries. In the 2024 index, Sweden drops another four places to 24th, compared to Norway, which tops the index, and Finland and Denmark, which rank 5th and 6th respectively. The trend of increasing inequality in Sweden is continuing - and it is a result of political decisions.
→ What causes Sweden's ranking?
Sweden's tax policy is the main reason for its poor ranking. For decades, Sweden has pursued an unfair tax policy, where the very richest have received several tax breaks while those living in the greatest vulnerability have not received the support they need. Today, a Swedish wage earner contributes 28 times more to the common good than someone with a large fortune. The reduced resources for welfare, including health care and schools, is another reason why Sweden has lost places.
→ Global trend: 9/10 countries pursue policies that increase inequality
For the first time since Oxfam and Development Finance International began measuring government policies to reduce inequality, almost all countries have increased inequality. 81% of the world's countries have made the tax burden more unequal, 90% of the world's countries have reduced workers' rights, and 90% of the world's countries are pursuing policies that will increase inequality.
"Unfortunately, Oxfam notes that Sweden has failed to reduce inequality for decades. And the policies currently being pursued mean that the gaps continue to widen. The latest state budget is a clear example of how the government and the Sweden Democrats prioritize those who can already afford it. Inequality leads to insecure societies, where discontent grows and trust between people decreases."
Suzanne Standfast, Secretary General Oxfam Sweden
How we rank
The Equality Index measures 164 countries' commitments to reducing inequality. We do this by assessing policies in progressive taxation, workers' rights and wages, and welfare (education, health and social protection). In tax policy, we look at income tax, corporate tax and harmful tax structures; in workers' rights, we look at minimum wages, trade union rights and women's rights as workers.
We also evaluate how policies are put into practice and what impact they have on inequality. You can find our full methodology via the link below.
Questions and answers
The countries that top the index are all rich OECD countries, which are much more able than low-income countries to collect taxes from their citizens - and also more able to spend tax money on public services and social security systems.
Among other things, Norway ranks higher in the tax area, e.g. through its action to stop harmful tax practices, and also ranks higher in workers' rights (Norway moved up one place to 2nd, Denmark is 4th and Sweden is 6th). During the period (2020-2022), Norway temporarily reduced its very high VAT on food, the effect of which contributed to the better ranking in the tax area. It is important to emphasize that no country gets a full pass - Norway is also proposed to make changes to increase economic equality, for example by increasing investment in health.
The lowest ranked countries are mainly countries in sub-Saharan Africa. Below is a list, with South Sudan having the highest ranking at 164th place:
- South Sudan
- Nigeria
- Vanuatu
- Haiti
- Zimbabwe
- Uganda
- Central African Republic
- Liberia
- Sierra Leone
- Burundi
We have arrived at the sum of a new wealth tax using the following tax rates and thresholds:
- 2% for net assets over SEK 50 million,
- 3% for net worth over SEK 500 million,
- and 5% for wealth above SEK 10 billion.
With these tax rates, we could generate around SEK 158 billion annually, which corresponds to almost a third of Sweden's entire healthcare budget and exceeds the state's support for health and care. Since we do not have a wealth register or similar now, we use data from Wealth-X and Forbes. Wealth-X is a global company that specializes in providing information and analysis of ultra-rich individuals and their wealth.
At Oxfam, we always work in an evidence-based way. We have our own researchers, rely on researchers and collaborate with leading research institutes and universities. Our data is based on rigorous analysis and research into inequality and its effects. To say that we 'hate the rich' is not just misleading; rather, it stems from fundamental differences of opinion.
Rather, it is the critics who need to explain and defend their own positions in the light of facts. That lowering taxes for the richest does not lead to greater equality. Trickle-down economics is a myth; historical data shows that redistribution through taxes and investment in welfare is crucial to fight inequality. It is clear that trickle-down is not working now.
We want to make the obvious clear: inequality is about the differences between the rich and the poor, not about individuals themselves. Our criticism is directed at inequality and the structures that maintain it.
So we ask a question back to the critics: instead of tackling inequality, why do you prioritize defending the rich who already have more than enough, over addressing the challenges faced by the poor? This is not the way to reduce the gaps in society.
Ensuring that all people have access to their rights and the opportunity to live a good life is the responsibility of politics. Only politics can solve the major problems of inequality that exist. Most people agree that economic growth is not enough to solve the problems that exist today (large companies, major international players, several billionaires, etc.). Instead, redistribution is required if we are to meet the challenges facing society.
In Sweden, we know that rights are strong on paper for the vast majority of people, and also the opportunities to, for example, educate themselves and make "class journeys" - but we also know that there are very vulnerable people who fall between the cracks. In particular, people born outside the EU do not have the same opportunities and rights as others. Migrant workers are very badly off and do not have access to their rights, to secure jobs, housing, education for their children, etc. This is an issue for governing politicians.
Oxfam's Equality Index ranks how governments in 164 countries are working to reduce economic inequality. The index is made up of three factors that have been shown to reduce inequality: progressive tax policies, welfare and workers' rights.
Our Equality Index needs to be read in the context of the methodology, which means that the factors cannot be read separately out of context, but must be read together to understand the ranking. The countries that top the index are democracies. The methodology can be found further down this page.
The 30 highest ranked countries
The consequences
Inequality benefits no one in the long run
→ Democracy is being undermined
In more unequal societies, democracy is undermined in several ways. One is a decline in trust in democracy and politicians among the population. This may not sound dramatic, but a loss of trust also makes democracy less effective and the sense of polarization between the 'elite' and the 'people' becomes more apparent. As a result, important policy reforms may not be implemented as consensus becomes harder to reach. Another way is that when a few individuals are allowed to become very rich, the risk of undue lobbying and corruption increases. It is not uncommon in our world for very rich individuals to bribe politicians in various ways to stop bills that would benefit the majority, or to make sure that laws to reduce taxes for the very richest gain political advantage.
→ Violence and crime on the rise
Research today shows that in more unequal societies, violence and crime also increase. Inequalities in education and healthcare can push people who are already vulnerable into desperate economic situations. In addition, polarization and a sense of 'us and them' - and a sense of injustice - are increasing. All this can motivate individuals to commit crimes. In more equal societies, where everyone's needs are met and the future feels full of opportunities, crime also generally decreases.
→ Emissions are increasing
In more unequal societies, carbon emissions increase. On the one hand, emissions increase because the super-rich emit large amounts of carbon dioxide through their extravagant lifestyles of jets, large homes and cars. The lifestyles of the super-rich also create a desire among the general public to live likewise. In more unequal societies, people spend more money on status goods, and visible purchases become more important. In addition, the climate transition is made more difficult when politicians are influenced by wealthy fossil fuel companies. Read more here.
The solutions
Sweden's path to a more equal country
Inequality is a result of political decisions, and can also be counteracted with political decisions. Oxfam Sweden has a total of 17 demands for the Swedish government, some of which you can read here. All solutions can be found in the Swedish summary of Sweden's ranking further down the page.
→ Progressive taxation
Oxfam wants to see improved statistics on inequality in Sweden: the introduction of a register and an annual report from the government on the state of inequality in the country. In addition, we recommend that the Swedish government introduce a wealth tax for individuals with wealth of at least SEK 50 million. This could generate around SEK 158 billion each year. A temporary tax on corporate windfall profits would also be beneficial. It would be applicable to banks, the energy sector and the food sector, which have been shown to generate large profits on essential supplies in the midst of societal crises. Finally, we want to see a reduced consumption tax for society's most vulnerable and low-income earners.
→ More resources for welfare
More resources need to go to welfare and especially healthcare, which is in crisis right now. Research shows that strong welfare states create better conditions for equality. The welfare state must meet the needs of the population and provide everyone with good living conditions. This means being able to provide both welfare services and transfers when needed. The state exists for its population and it is not the population that we should skimp on. Globally, Sweden should work to abandon the GDP target as a measure of a country's prosperity. Instead, a measure of equality, human well-being and planetary health should be introduced as a measure of progress and prosperity.
→ Strengthen workers' rights
Oxfam recommends that the government legislate for shorter working hours. By reducing working hours, people will have more time for recovery, leisure and meaningful activities , leading to greater freedom and health. The government should also strengthen the position of safety representatives in workplaces. They play a key role in safeguarding the working environment and ensuring compliance with rules. In addition, a cap on the difference between workers' and CEOs' salaries should be introduced.
Reports
Commitment to Reducing Inequality Index 2024
Swedish summary of Sweden's ranking
Summary of the report
Methodology
