As the world grapples with crises of economy, climate, and conflict, the widening gap between the rich and poor threatens global stability. The Oxfam report serves as a stark reminder that economic inequality is not an accident but a consequence of deliberate policies and historical injustices.

A report by Oxfam International, titled ‘Takers Not Makers – The Unjust Poverty and Unearned Wealth of Colonialism’, reveals that the richest 10 per cent in the UK extracted a staggering US$33.8 trillion from India during over a century of colonial rule between 1765 and 1900. The report was released to coincide with the first day of the World Economic Forum Annual Meeting at Davos.

Basing its arguments on a number of previous studies and research papers, the Oxfam researchers have calculated that between 1765 and 1900, the richest 10 per cent in the UK extracted wealth from India alone worth USD 33.8 trillion in today’s money. This amount, adjusted for modern value, could carpet the entire city of London in £50 notes almost four times over. The report sheds light on the deep economic inequality created by colonial domination and its lasting impacts on the Global South.

The report underscores how colonialism primarily benefited the UK’s wealthiest elite, with the bulk of the plundered wealth funnelled to a privileged few. Beyond the richest, the newly emergent middle class in Britain also saw significant financial gains from the exploitation of India’s vast resources and labour.

“Colonialism was not just about resource extraction, it was a systematic process that enriched the wealthy few in the UK while impoverishing millions in India,” Oxfam stated. “These patterns of wealth extraction and inequality are still reflected in today’s global economy.”

Unearned Wealth

The findings of ‘Takers Not Makers – The Unjust Poverty and Unearned Wealth of Colonialism’ come at a time when billionaire wealth is growing at unprecedented speeds. According to the report, billionaire fortunes increased three times faster in 2024 compared to 2023. On average, each billionaire saw their wealth grow by US$2 million per day, while the richest 10 billionaires amassed US$100 million daily.

If current trends continue, Oxfam predicts that five trillionaires will emerge within the next decade. In stark contrast, the number of people living in poverty has remained nearly unchanged since 1990. Today, an estimated 3.6 billion people still live below the World Bank’s poverty line of $6.85 per day.

The report highlights that most billionaire wealth is taken, not earned. A staggering 60 per cent of billionaire wealth originates from inheritance, cronyism, corruption, and monopoly power rather than innovation or entrepreneurial effort. In fact, for the first time in 2023, more billionaires were created through inheritance than through business acumen.

“We live in a world where extreme wealth is transferred across generations, largely untaxed, perpetuating the same cycle of inequality that began during colonial rule,” the report states. “The super-rich continue to benefit at the expense of the poorest, racialised, and marginalised communities.”

Colonialism in Modern Disguise

The ‘Takers Not Makers – The Unjust Poverty and Unearned Wealth of Colonialism’ report argues that the world remains colonial in many ways, with wealth still being extracted from the Global South to the Global North. Oxfam calculates that today, an estimated US$30 million is transferred every hour from developing countries to the richest 1 per cent in rich nations through an exploitative global financial system.

The report points to structural inequalities within institutions such as the World Bank, where the average Belgian has 180 times more voting power than the average Ethiopian. These disparities reinforce a cycle of economic dependence and subjugation that originated in the colonial era.

The report says, “This system still extracts wealth from the Global South to the superrich 1% in the Global North at a rate of US$30million an hour.” This must be reversed. Reparations must be made to those who were brutally enslaved and colonised. Our modern-day colonial economic system must be made radically more equal to end poverty. The cost should be borne by the richest people who benefit the most.

The devastating human cost of this inequality is felt most acutely by women and marginalised communities in the Global South. Women contribute an estimated 12.5 billion hours of unpaid care work daily, which adds at least US$10.8 trillion in value to the global economy. Despite their enormous contributions, they continue to face systemic economic exclusion and discrimination.

Oxfam warns that without urgent action, the world will remain locked in a cycle of poverty and exploitation, where resources are siphoned from the poorest to enrich the wealthiest.

Calls for Reparations

The report makes an urgent call for reparations to those who were brutally enslaved and colonised, arguing that meaningful change must involve financial restitution and systemic restructuring of global financial institutions.

“….This must be reversed,” the report says, adding, “Reparations must be made to those who were brutally enslaved and colonised. Our modern-day colonial economic system must be made radically more equal to end poverty. The cost should be borne by the richest people who benefit the most.”

“The global economic system must be radically transformed to ensure equity and justice,” Oxfam asserts. “The richest people who have benefited the most from centuries of exploitation must bear the cost of reversing these inequalities.”

Proposals include a wealth tax on billionaires, debt cancellation for developing countries, and the implementation of policies that prioritise human well-being over corporate profit.

As the world grapples with crises of economy, climate, and conflict, the widening gap between the rich and poor threatens global stability. The Oxfam report serves as a stark reminder that economic inequality is not an accident but a consequence of deliberate policies and historical injustices.

“We cannot move forward without addressing the past,” the report concludes. “True progress requires recognising the systemic exploitation that has occurred and making amends to create a fairer world for all.”

The report raises several question illustrating that the cycles of exploitation and inequality persist for generations to come unless the global community takes decisive action.