Saudi- Leaders at Davos urged to bridge rich poor gap

(MENAFN- Arab News) DAVOS: The world's political and business elite are being urged to do more than pay lip service to growing inequalities around the world as they head off for this week's World Economic Forum in the Swiss ski resort of Davos.
Two reports published Monday from Oxfam and public relations firm Edelman warned that the widening gap between the haves and have-nots since the global financial crisis is undermining a decades-long effort to reduce global poverty and fueling the rise of populist politicians.
According to Oxfam the scale of the problem is increasingly stark: Just 62 people it says own the same wealth as half the planet. The compares with 388 people just five years ago when the global economy was just emerging from its deepest recession since World War II.
The theme of this year's Davos gathering is the "fourth industrial revolution" caused by fast and broad innovations in areas like robotics driverless cars 3-D printing and biotechnology. WEF founder Klaus Schwab in an Associated Press interview in Davos said it could widen the gap between rich and poor.
"It's my biggest concern because the fourth industrial revolution will even increase the inequality which we have" Schwab said adding: "Those who are entrepreneurs who have talents will push innovation will gain from the revolution and those who are on the other side particularly in service positions will lose."
While the wealth of the poorest half of the world's population more than 3.6 billion people has fallen by a trillion dollars or 41 percent since 2010 Oxfam said in its report that the wealth of the super-elite has risen by around half a trillion dollars.
Though acknowledging that dealing with inequalities has become a part of discussions in Davos Oxfam said it's time for leaders to do more than just acknowledge the problem especially if they want to hit poverty-reduction targets.
"It is simply unacceptable that the poorest half of the world's population owns no more than a few dozen super-rich people who could fit onto one bus" said Winnie Byanyima Oxfam International Executive Director who will again attend Davos having co-chaired last year's event.
Tax havens she said are at the core of the rigged system that allows big corporations and wealthy individuals to avoid paying their fair share of tax.