Gap between rich and poor now a crisis
more staggering amounts of wealth at the expense of the rest.
We’ve recited the problems many times, but what are we going to do about it? Have hope, despite everything. Oxfam, like others, has been voicing outrage about the inequality crisis for years, but it does not have to be this way. Inequality is not inevitable. We have the talent, imagination and skills to make the world a fairer place.
People around the world are putting forward the solutions to build a fairer and more stable world – one that is grounded in serious, effective economics, and in which governments are not working for vested interests, but are accountable and actively working for the 99%.
I believe the blueprint to build a more human economy is before us: an economy that works for everyone and not just the fortunate few. Let me outline some ideas. It’s no secret that progressive tax reforms are core in the fight against inequality. The World Bank called them “an essential component of any successful strategy for guaranteeing equal opportunity.”
By raising taxes on the highest incomes, governments can raise the funds needed to invest in universal education and health care for citizens – essential investments proven to reduce inequality.
Sometimes countries can aim to be progressive about tax, but are outdone by a global tax system working against them. The wealthiest thrive on cheating this system – while the poorest countries and poorest people suffer. Rich individuals hiding their wealth in tax havens deny Africa $14-billion a year in vital tax revenues – enough to pay for healthcare for mothers and children that could save four million children’s lives a year, and employ enough teachers to get every African child into school.
I join many on our continent in believing that business must drive growth and provide jobs for our young people. But we need the right kind of capitalism – where proceeds benefit all, including workers and local communities, not just rich shareholders.
Governments should support companies with pro-worker policies that do this. Cooperatives and other employee-owned forms of business often offer their workers better rights and wages.
For African countries, this means supporting locally owned farming cooperatives over foreign-owned “mega-farms,” which snatch up land from small farmers and concentrate profits in the hands of a few.
Finally and just as importantly, governments must champion policies that help unlock the potential of our women and girls.
Closing the gap between the rich and poor is fundamental to eliminating poverty in Africa and across the world. Inequality threatens the hard-fought progress our continent has made.
However, as a true African I remain incurably hopeful for our future. Our continent has huge potential – let’s work together to make our economies and governments work for all of us.