Sweden best in the world at fighting income inequality

Sweden is number one in fighting income inequality. This is according to a new global index presented by Oxfam and Development Finance International today.

The Commitment to Reducing Inequality Index ranks 152 countries on how their governments are working to reduce the gap between rich and poor. Based on the latest data available from governments and global institutions such as the ILO and the World Bank, the index ranks countries in the three areas that are crucial in fighting economic inequality: workers' rights, social spending and taxation.

The index, which will be updated annually, shows that 75% of governments are doing less than half of what they could be doing in these three areas to combat inequality. Sweden, followed by Belgium and Denmark top the list due to their tax systems where the richest people and companies pay a larger share of taxes, the relatively high spending on social services and social protection and the level of support for workers and women's rights.

"Sweden has a good system for equalizing income differences and if other countries followed suit, inequality in the world would decrease. At the same time, inequalities are increasing here and if Sweden is to maintain its position as the best in the world at combating inequality, measures must be taken to address this."

Robert Höglund, Head of Communications, Oxfam Sweden

The countries at the bottom of the list, Nigeria, Bahrain and Myanmar, suffer from shamefully low government support for healthcare, education and social protection. They show record low spending on labor and women's rights and, especially in the case of Bahrain and Nigeria, a tax system that overburdens the poorest in society while leaving the richest citizens untaxed.

"Extreme and growing inequality damages our economies and societies, and slows down the fight against poverty. Yet no country is doing enough to close the gap between rich and poor. Our political leaders have much to say about tackling inequality - unfortunately this index proves that much of what we hear is empty rhetoric."

Winnie Byanyima, Director, Oxfam International

Extreme poverty will not be eradicated unless economic inequality is curbed: the World Bank predicts that almost half a billion people will still be living in extreme poverty by 2030 if no action is taken against inequality. The index shows that the fight against inequality is about political will, and that governments' choices make a difference. For example, several poor countries rank better than rich ones, and more than one in five countries in the Index's top 50 are developing countries.

"We hope that the index will motivate governments to act in the interest of their citizens by investing more in public services, investing in fair tax systems and defending workers' rights. Our economies should be built to work for everyone, not just to benefit a lucky few."

Winnie Byanyima, Director, Oxfam International