Inequality
The Oxfam Report is Important, But There’s More to the Story
The Oxfam Report is Important, But There’s More to the Story
The Chart of the Week is a weekly Visual Capitalist feature on Fridays.
Prior to the opening day of the World Economic Forum in Davos, Oxfam International made waves with its latest report on global inequality. In particular, one “shock value” finding made headlines: eight men now combine to have the same wealth as half of the world’s population, or 3.6 billion people.
Today’s chart breaks down who these men are and how much they own in terms of assets. But, it also serves as a springboard to dive into a few other thoughts on the Oxfam report, inequality, philanthropy, and eradicating poverty.
The Giving Pledge
When I saw the headline from the Oxfam report, one of my first thoughts was: how many of these billionaires have signed The Giving Pledge?
The Giving Pledge was launched in 2010 by Bill and Melinda Gates and Warren Buffett. It’s stated goal is to “help address society’s most pressing problems” by inviting “the world’s wealthiest individuals and families to commit to giving more than half of their wealth to philanthropy”. So far, it’s been signed by 139 individuals with commitments of $732 billion.
Of the eight people at the top of the wealth pyramid, the majority has signed The Giving Pledge including: Bill Gates (co-founder), Warren Buffett (co-founder), Mark Zuckerberg, Larry Ellison, and Michael Bloomberg.
Three of the eight billionaires haven’t signed the pledge. Jeff Bezos is included in that mix, and he has faced some criticism over the fact. The other two that have not signed yet are Spanish billionaire Amancio Ortega and Mexican business magnate Carlos Slim Helú.
At the end of the day, signing the Giving Pledge is not yet equivalent to “walking the walk” in helping to solve pressing problems like poverty or inequality. However, people like Gates and Buffett have already made a huge difference to charitable causes.
Here’s what Warren Buffett recently said about his fortune:
In my entire lifetime, everything that I’ve spent will be quite a bit less than 1 percent of everything I make. The other 99 percent plus will go to others because it has no utility to me. So it’s silly for me to not transfer that utility to people who can use it.
Buffett is one of the world’s best investors – and if he continues to invest his money wisely into philanthropy, the result will likely be something that even Oxfam can be proud of.
The Poor Are Actually Getting Richer
While the sensational fact that headlined the Oxfam report is certainly alarming and important, it also misses some noteworthy context.
People in many of the world’s poorest nations aren’t getting poorer – they are actually getting much richer. The number of people living in extreme poverty has been cut in half since 1990.
Here’s another way to show it – and perhaps this is where the emotional pain points arise:
Courtesy of: Harvard Business Review, h/t Ian Bremmer
The poorest and richest cohorts of the global population, along with the Asian middle class, all got much richer over the last two decades.
The American middle class, however, was not so lucky. Median income for 81% of U.S. counties actually peaked back in 1999, and other Western countries are facing similar inequality challenges.
One Last Chart
The final chart here is courtesy of Swedish author and historian Johan Norberg, who wrote a sarcastic response to the Oxfam report:
If we don't end neoliberalism we'll see more of what happened in the last 25 years, warns Oxfam. pic.twitter.com/i1CH3dswFY
— Johan Norberg (@johanknorberg) January 17, 2017
Oxfam and many others are rightly concerned about inequality. But, for the people that need it most, things continue to get better. Such a narrative is not sexy enough for a click-driven media that thrives on sensational or emotional soundbites.
For more information about the metrics that are continuing to improve, see this post by Peter Diamandis, or this one in Reason.
Here’s one final quote from Norberg worth considering:
Part of our problem is one of success. As we get richer, our tolerance for global poverty diminishes. So we get angrier about injustices. Charities quite rightly wish to raise funds, so they draw our attention to the plight of the world’s poorest. But since the Cold War ended, extreme poverty has decreased from 37 per cent to 9.6 per cent — in single digits for the first time in history.
Debt
Where People Borrow Money From, by Country Income Level
These graphics shed light on which people borrow money from financial institutions, and which rely on friends and family for monetary help.

When making the decision to borrow money, do you turn to friends and family for financial help, or do you go to a financial institution like a bank or credit card company?
On a country-to-country basis, this choice often depends on a mix of various factors, including the availability of financial services, financial literacy, and the cultural approach to the very concept of lending itself.
In these graphics, Richie Lionell sheds some light on where people borrow money from, using the 2021 Global Findex Database published by the World Bank.
Borrowing From Financial Institutions
To compare borrowing practices across both location and income level, the dataset features survey results from respondents aged 15+ and groups countries by region except for high-income countries, which are grouped together.
In 2021, most individuals in high income economies borrowed money from formal financial institutions.
Country | Region | Borrowed from a financial institution |
---|---|---|
Canada | High income | 81.01% |
Israel | High income | 79.52% |
Iceland | High income | 73.36% |
Hong Kong SAR, China | High income | 70.01% |
Korea, Rep. | High income | 68.64% |
Norway | High income | 66.82% |
United States | High income | 66.21% |
Taiwan, China | High income | 61.95% |
Switzerland | High income | 61.40% |
Japan | High income | 61.19% |
New Zealand | High income | 60.38% |
Australia | High income | 57.29% |
Austria | High income | 56.52% |
Italy | High income | 55.01% |
United Kingdom | High income | 54.98% |
Germany | High income | 54.68% |
Ireland | High income | 54.11% |
Denmark | High income | 53.16% |
Finland | High income | 52.98% |
Spain | High income | 51.92% |
Sweden | High income | 48.69% |
Belgium | High income | 47.98% |
France | High income | 44.37% |
Singapore | High income | 42.82% |
Slovenia | High income | 42.36% |
Uruguay | High income | 42.01% |
Brazil | Latin America & Caribbean (excluding high income) | 40.75% |
China | East Asia & Pacific (excluding high income) | 39.19% |
Malta | High income | 38.95% |
Türkiye | Europe & Central Asia (excluding high income) | 37.84% |
Netherlands | High income | 34.45% |
Slovak Republic | High income | 34.41% |
Mongolia | East Asia & Pacific (excluding high income) | 34.39% |
Ukraine | Europe & Central Asia (excluding high income) | 34.13% |
Estonia | High income | 33.64% |
Croatia | High income | 33.03% |
Saudi Arabia | High income | 32.38% |
Poland | High income | 31.92% |
Czech Republic | High income | 31.33% |
Cyprus | High income | 31.25% |
Cambodia | East Asia & Pacific (excluding high income) | 30.89% |
Argentina | Latin America & Caribbean (excluding high income) | 30.81% |
Portugal | High income | 30.44% |
Kazakhstan | Europe & Central Asia (excluding high income) | 29.76% |
Russian Federation | Europe & Central Asia (excluding high income) | 29.75% |
Thailand | East Asia & Pacific (excluding high income) | 28.26% |
Bulgaria | Europe & Central Asia (excluding high income) | 26.36% |
Armenia | Europe & Central Asia (excluding high income) | 26.17% |
Iran, Islamic Rep. | Middle East & North Africa (excluding high income) | 25.11% |
Chile | High income | 24.20% |
Georgia | Europe & Central Asia (excluding high income) | 23.89% |
Ecuador | Latin America & Caribbean (excluding high income) | 23.23% |
Latvia | High income | 22.74% |
United Arab Emirates | High income | 22.46% |
Kenya | Sub-Saharan Africa (excluding high income) | 22.18% |
North Macedonia | Europe & Central Asia (excluding high income) | 22.10% |
Peru | Latin America & Caribbean (excluding high income) | 21.95% |
Dominican Republic | Latin America & Caribbean (excluding high income) | 21.65% |
Bosnia and Herzegovina | Europe & Central Asia (excluding high income) | 21.30% |
Sri Lanka | South Asia | 21.29% |
Namibia | Sub-Saharan Africa (excluding high income) | 20.97% |
Serbia | Europe & Central Asia (excluding high income) | 20.65% |
Greece | High income | 20.11% |
Mauritius | Sub-Saharan Africa (excluding high income) | 20.09% |
Bolivia | Latin America & Caribbean (excluding high income) | 19.30% |
Romania | Europe & Central Asia (excluding high income) | 19.14% |
Hungary | High income | 18.93% |
Uganda | Sub-Saharan Africa (excluding high income) | 18.62% |
South Africa | Sub-Saharan Africa (excluding high income) | 18.22% |
Colombia | Latin America & Caribbean (excluding high income) | 18.10% |
Kyrgyz Republic | Europe & Central Asia (excluding high income) | 17.73% |
Kosovo | Europe & Central Asia (excluding high income) | 17.61% |
Costa Rica | Latin America & Caribbean (excluding high income) | 17.46% |
Philippines | East Asia & Pacific (excluding high income) | 17.45% |
Liberia | Sub-Saharan Africa (excluding high income) | 15.42% |
Bangladesh | South Asia | 14.22% |
Nepal | South Asia | 14.11% |
Malaysia | East Asia & Pacific (excluding high income) | 13.48% |
Albania | Europe & Central Asia (excluding high income) | 13.39% |
Moldova | Europe & Central Asia (excluding high income) | 13.18% |
Indonesia | East Asia & Pacific (excluding high income) | 12.86% |
Tajikistan | Europe & Central Asia (excluding high income) | 12.43% |
Paraguay | Latin America & Caribbean (excluding high income) | 12.39% |
Nicaragua | Latin America & Caribbean (excluding high income) | 12.19% |
Jamaica | Latin America & Caribbean (excluding high income) | 12.04% |
Lithuania | High income | 11.95% |
India | South Asia | 11.79% |
Mali | Sub-Saharan Africa (excluding high income) | 10.99% |
El Salvador | Latin America & Caribbean (excluding high income) | 10.56% |
Panama | Latin America & Caribbean (excluding high income) | 10.39% |
Honduras | Latin America & Caribbean (excluding high income) | 10.32% |
Mozambique | Sub-Saharan Africa (excluding high income) | 10.27% |
Senegal | Sub-Saharan Africa (excluding high income) | 9.98% |
Tunisia | Middle East & North Africa (excluding high income) | 9.89% |
Jordan | Middle East & North Africa (excluding high income) | 9.86% |
Lao PDR | East Asia & Pacific (excluding high income) | 9.15% |
Venezuela, RB | Latin America & Caribbean (excluding high income) | 8.83% |
Benin | Sub-Saharan Africa (excluding high income) | 8.21% |
Malawi | Sub-Saharan Africa (excluding high income) | 7.99% |
Uzbekistan | Europe & Central Asia (excluding high income) | 7.50% |
Togo | Sub-Saharan Africa (excluding high income) | 7.42% |
Ghana | Sub-Saharan Africa (excluding high income) | 7.40% |
Egypt, Arab Rep. | Middle East & North Africa (excluding high income) | 7.30% |
Myanmar | East Asia & Pacific (excluding high income) | 7.06% |
Cameroon | Sub-Saharan Africa (excluding high income) | 6.99% |
Zambia | Sub-Saharan Africa (excluding high income) | 6.76% |
Burkina Faso | Sub-Saharan Africa (excluding high income) | 6.66% |
Nigeria | Sub-Saharan Africa (excluding high income) | 6.40% |
Congo, Rep. | Sub-Saharan Africa (excluding high income) | 6.19% |
Guinea | Sub-Saharan Africa (excluding high income) | 6.11% |
Gabon | Sub-Saharan Africa (excluding high income) | 5.48% |
Morocco | Middle East & North Africa (excluding high income) | 4.99% |
West Bank and Gaza | Middle East & North Africa (excluding high income) | 4.94% |
Tanzania | Sub-Saharan Africa (excluding high income) | 4.45% |
Sierra Leone | Sub-Saharan Africa (excluding high income) | 4.29% |
Cote d'Ivoire | Sub-Saharan Africa (excluding high income) | 4.10% |
Algeria | Middle East & North Africa (excluding high income) | 3.80% |
Iraq | Middle East & North Africa (excluding high income) | 3.64% |
Pakistan | South Asia | 3.51% |
Lebanon | Middle East & North Africa (excluding high income) | 3.31% |
Zimbabwe | Sub-Saharan Africa (excluding high income) | 2.89% |
South Sudan | Sub-Saharan Africa (excluding high income) | 2.48% |
Afghanistan | South Asia | 2.05% |
With 81% of respondents borrowing from financial institutions, Canada tops this list. Meanwhile, Israel (80%), Iceland (73%), Hong Kong (70%), and South Korea (69%) are not far behind.
This is not surprising for richer nations, as financial services in these countries are more available and accessible. This, coupled with higher financial literacy, including a general understanding of interest rates and credit-building opportunities, contribute to the popularity of financial institutions.
Also, it’s worth noting that some countries have cultural practices that factor in. For example, 61% of respondents in Japan used formal financial institutions, which are a more socially acceptable option than asking to borrow money from friends and family (just 6% of people in Japan).
Borrowing from Friends and Family
In contrast, more individuals in lower income economies approached family and friends in order to borrow money.
Afghanistan tops this list with 60% of respondents relying on friends and family, compared to only 2% borrowing money from formal financial institutions.
Country | Region | Borrowed from family or friends |
---|---|---|
Afghanistan | South Asia | 60.18% |
Uganda | Sub-Saharan Africa (excluding high income) | 57.45% |
Kenya | Sub-Saharan Africa (excluding high income) | 54.40% |
Namibia | Sub-Saharan Africa (excluding high income) | 50.25% |
Morocco | Middle East & North Africa (excluding high income) | 48.73% |
Nigeria | Sub-Saharan Africa (excluding high income) | 44.71% |
South Africa | Sub-Saharan Africa (excluding high income) | 44.54% |
Iraq | Middle East & North Africa (excluding high income) | 44.10% |
Cameroon | Sub-Saharan Africa (excluding high income) | 43.49% |
Zambia | Sub-Saharan Africa (excluding high income) | 43.08% |
Zimbabwe | Sub-Saharan Africa (excluding high income) | 42.34% |
Guinea | Sub-Saharan Africa (excluding high income) | 42.04% |
Nepal | South Asia | 41.79% |
Jordan | Middle East & North Africa (excluding high income) | 41.76% |
Gabon | Sub-Saharan Africa (excluding high income) | 41.41% |
Liberia | Sub-Saharan Africa (excluding high income) | 41.37% |
Tunisia | Middle East & North Africa (excluding high income) | 41.05% |
Philippines | East Asia & Pacific (excluding high income) | 40.82% |
Türkiye | Europe & Central Asia (excluding high income) | 40.80% |
Iran, Islamic Rep. | Middle East & North Africa (excluding high income) | 39.80% |
Sierra Leone | Sub-Saharan Africa (excluding high income) | 39.02% |
Ghana | Sub-Saharan Africa (excluding high income) | 38.58% |
Egypt, Arab Rep. | Middle East & North Africa (excluding high income) | 37.75% |
Saudi Arabia | High income | 35.76% |
Bangladesh | South Asia | 35.49% |
Mali | Sub-Saharan Africa (excluding high income) | 35.15% |
Burkina Faso | Sub-Saharan Africa (excluding high income) | 35.14% |
Cambodia | East Asia & Pacific (excluding high income) | 34.85% |
Venezuela, RB | Latin America & Caribbean (excluding high income) | 34.81% |
Togo | Sub-Saharan Africa (excluding high income) | 33.99% |
West Bank and Gaza | Middle East & North Africa (excluding high income) | 33.93% |
Thailand | East Asia & Pacific (excluding high income) | 32.83% |
Lao PDR | East Asia & Pacific (excluding high income) | 32.36% |
Moldova | Europe & Central Asia (excluding high income) | 32.18% |
Ukraine | Europe & Central Asia (excluding high income) | 32.17% |
Senegal | Sub-Saharan Africa (excluding high income) | 31.30% |
Armenia | Europe & Central Asia (excluding high income) | 31.29% |
India | South Asia | 31.02% |
Bolivia | Latin America & Caribbean (excluding high income) | 30.69% |
Algeria | Middle East & North Africa (excluding high income) | 30.52% |
Cote d'Ivoire | Sub-Saharan Africa (excluding high income) | 30.20% |
Albania | Europe & Central Asia (excluding high income) | 30.00% |
Bulgaria | Europe & Central Asia (excluding high income) | 29.99% |
Benin | Sub-Saharan Africa (excluding high income) | 29.33% |
Mozambique | Sub-Saharan Africa (excluding high income) | 29.33% |
Tanzania | Sub-Saharan Africa (excluding high income) | 29.24% |
Colombia | Latin America & Caribbean (excluding high income) | 29.08% |
Indonesia | East Asia & Pacific (excluding high income) | 28.85% |
South Sudan | Sub-Saharan Africa (excluding high income) | 28.84% |
Ecuador | Latin America & Caribbean (excluding high income) | 28.79% |
Serbia | Europe & Central Asia (excluding high income) | 28.49% |
Russian Federation | Europe & Central Asia (excluding high income) | 28.40% |
Mongolia | East Asia & Pacific (excluding high income) | 27.01% |
Kyrgyz Republic | Europe & Central Asia (excluding high income) | 27.01% |
China | East Asia & Pacific (excluding high income) | 26.43% |
Honduras | Latin America & Caribbean (excluding high income) | 26.07% |
Greece | High income | 25.94% |
Kosovo | Europe & Central Asia (excluding high income) | 25.86% |
Argentina | Latin America & Caribbean (excluding high income) | 25.72% |
Kazakhstan | Europe & Central Asia (excluding high income) | 25.64% |
Romania | Europe & Central Asia (excluding high income) | 25.58% |
Malawi | Sub-Saharan Africa (excluding high income) | 25.24% |
North Macedonia | Europe & Central Asia (excluding high income) | 25.14% |
Dominican Republic | Latin America & Caribbean (excluding high income) | 24.70% |
Brazil | Latin America & Caribbean (excluding high income) | 24.66% |
Congo, Rep. | Sub-Saharan Africa (excluding high income) | 24.40% |
Lebanon | Middle East & North Africa (excluding high income) | 24.26% |
Nicaragua | Latin America & Caribbean (excluding high income) | 23.75% |
Iceland | High income | 23.63% |
Peru | Latin America & Caribbean (excluding high income) | 23.34% |
United Arab Emirates | High income | 23.04% |
Myanmar | East Asia & Pacific (excluding high income) | 23.03% |
Sri Lanka | South Asia | 22.53% |
Paraguay | Latin America & Caribbean (excluding high income) | 22.20% |
Pakistan | South Asia | 21.87% |
Uzbekistan | Europe & Central Asia (excluding high income) | 21.53% |
Cyprus | High income | 20.95% |
Bosnia and Herzegovina | Europe & Central Asia (excluding high income) | 20.94% |
Chile | High income | 20.72% |
Georgia | Europe & Central Asia (excluding high income) | 20.61% |
Mauritius | Sub-Saharan Africa (excluding high income) | 20.48% |
Costa Rica | Latin America & Caribbean (excluding high income) | 20.29% |
Jamaica | Latin America & Caribbean (excluding high income) | 20.02% |
Tajikistan | Europe & Central Asia (excluding high income) | 19.86% |
Poland | High income | 19.34% |
Norway | High income | 19.29% |
United States | High income | 18.09% |
Uruguay | High income | 17.60% |
Panama | Latin America & Caribbean (excluding high income) | 17.54% |
Denmark | High income | 17.51% |
Croatia | High income | 17.09% |
El Salvador | Latin America & Caribbean (excluding high income) | 16.78% |
Slovenia | High income | 16.77% |
Latvia | High income | 16.57% |
Australia | High income | 16.44% |
Estonia | High income | 15.74% |
Malaysia | East Asia & Pacific (excluding high income) | 15.44% |
Israel | High income | 15.43% |
New Zealand | High income | 15.19% |
Slovak Republic | High income | 15.02% |
Germany | High income | 15.01% |
Austria | High income | 14.41% |
Canada | High income | 14.00% |
Finland | High income | 13.43% |
Czech Republic | High income | 13.41% |
Korea, Rep. | High income | 13.16% |
Malta | High income | 12.99% |
Belgium | High income | 12.13% |
Sweden | High income | 11.79% |
Hungary | High income | 11.15% |
Lithuania | High income | 10.65% |
Spain | High income | 10.44% |
France | High income | 10.42% |
Netherlands | High income | 10.24% |
Ireland | High income | 9.84% |
Taiwan, China | High income | 9.70% |
Portugal | High income | 8.22% |
Hong Kong SAR, China | High income | 7.59% |
Japan | High income | 6.43% |
Switzerland | High income | 6.10% |
United Kingdom | High income | 5.24% |
Italy | High income | 5.06% |
Singapore | High income | 1.89% |
Many individuals in African countries including Uganda (57%), Kenya (54%), Namibia (50%), and Morocco (49%) also are choosing to borrow money from friends and family over financial institutions.
These preferences can be attributed to various factors including a lack of trust in banking and financial institutions, lacking access to such services, or the lack of information about such services if they are available.
And in some societies, borrowing from friends and family can be seen as a cultural norm, especially in places where mutual support and solidarity play a strong role.
What’s Next?
As viewed by the World Bank, financial inclusion is an important foundation of any nation’s development, and it’s also one of the UN’s Sustainable Development Goals. Increasing levels of financial inclusion helps give people access to services like savings plans, credit avenues, and online payments and transactions.
And thanks to commitments from countries and financial systems, global ownership of banking accounts has increased significantly (and been further spurred by the COVID-19 pandemic). According to the Global Findex Database, bank account ownership has risen to 76% in 2021, up from just 51% a decade prior.
However, access to these services is still rife with gaps when it comes to low income nations, low income individuals, and unequal access based on gender. The future of borrowing now relies on how nations deal with these challenges.
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