China’s wealth inequality has worsened in pandemic, highlighting ‘alarming’ global trend, Oxfam finds
- World Bank Group warns that pandemic has widened the rich-poor gap, particularly in emerging markets and developing economies such as China
- China’s wealth gap has widened particularly due to the ownership of flats, which is the biggest source of household wealth and debt, economist says
The world’s income and wealth inequality is said to have reached an “alarming” level two years into a global pandemic that has killed at least 5.5 million people.
The disparity has proved particularly challenging for Asian countries, forcing Beijing, Tokyo, Bangkok and others to provide more policy support, according to analysts.
“This is the biggest surge in billionaire wealth since records began. The trend is alarming,” warned the organisation that is dedicated to alleviating global poverty. It also called for permanent wealth and capital taxes, as well as increased investment in health care and social security.
“It is significant that the leaders of the world’s two largest economies – the USA and China – are pursuing some crucial policies that reduce inequality, including higher taxes on rich people and action against monopolies,” it said. “This is just a beginning, but it provides opportunities for a new economic consensus to emerge.”
