Swedes want to reduce inequalities

Eight out of ten Swedes believe that global economic disparities have a negative impact on social development. Just as many also believe that the world's politicians must act to reduce the gaps. This is according to a new survey conducted by Oxfam in collaboration with Novus on the topic of economic distribution.

At the end of April, Novus interviewed 1 016 Swedes aged 18 to 79 about their views on economic inequality. The survey shows that as many as 79% of Swedes believe that the economic gap in the world has a negative impact on social development. 83% also believe that the world's politicians should act to reduce the gap.

Nearly seven out of ten Swedes (68%) believe that economic inequality has increased in Sweden in recent years. Statistics from the OECD confirm that they are right. Between 1985 and 2010, economic inequality in Sweden grew more than in any other OECD country. It is also clear that the very richest Swedes are pulling away more and more. Between 2002 and 2015, the wealth of the richest individuals almost tripled in nominal terms. Despite this, Sweden is still one of the most equal countries in the world.

The 80 richest own half
In other parts of the world, the trend is even more dramatic. In January, Oxfam released the report Wealth: Having It All and Wanting More, which examines how the world's resources are distributed. The report shows that the 80 richest individuals in the world own as much as half the world's population combined. The gap between the richest and the rest continues to widen and at the current rate, one percent of the world's population will own more than the rest combined by next year.

A democracy problem
The richest are getting richer while hundreds of thousands of people are living in extreme poverty. In many parts of the world, the masses are not benefiting from the increased wealth, which is instead concentrated in the hands of a small elite. Widening gaps now threaten to undermine the positive developments of recent decades.

"The problem is not that people are rich, but the problem of democracy that arises when a small group can buy power and influence in a way that the majority cannot."

Louise Gauffin, Secretary General of Oxfam Sweden

In 2014, according to Forbes, there were 1645 billionaires in the world. 90% of them are men, 85% are over 50 and 34% have inherited all or part of their wealth. The economic elite invest much of their capital in specific sectors, such as finance and insurance companies and the pharmaceutical industry. The largest and most successful companies in these sectors spend hundreds of millions of dollars annually on lobbying. In 2013, finance and insurance companies spent over USD 550 million on political lobbying in Brussels and Washington.

"When a large share of the world's resources is concentrated in a small homogeneous group, their interests tend to be favored over those of the majority. This is a problem of democracy that disadvantages weak and marginalized groups. We need to create a political climate that enables more people to develop and lift themselves out of poverty."

Louise Gauffin, Secretary General of Oxfam Sweden

The way forward
The survey also shows that more than eight out of ten Swedes believe that the world's politicians must act to reduce economic disparities. When asked what politicians should do, Swedes rank education and healthcare as the most important. This is followed by a basic social safety net and, in third place, promoting women's social and economic rights.

"At Oxfam, we also stress the importance of global tax reform and tougher rules against tax evasion. The world's poorest countries lose up to $100 billion each year in corporate tax evasion, money that could be spent on education, health care and other welfare services that help people lift themselves out of poverty."

Louise Gauffin, Secretary General of Oxfam Sweden

Through the Even it Up campaign, Oxfam is calling on world governments to:
- Rewrite the global tax code and include poor countries in the discussions
- Crack down on tax evasion and close loopholes
- Invest in basic public services accessible to all
- Introduce safety nets for the poorest
- Introduce minimum wages that people can live on
- Shift the tax burden from work and consumption to capital and wealth
- Promote economic policies that are fair to women