October, 11 2022, 07:40am EDT

For Immediate Release
Contact:
Phone
+1 617 482 1211 (Toll-free 1-800-77-OXFAM)
New index shows governments worldwide stoked an inequality explosion during COVID-19 pandemic
Half of the poorest countries saw health spendings drop despite the pandemic, while 95 percent of all countries froze or even lowered taxes on rich people and corporates
GLOBAL
Rich and poor countries alike have exacerbated an explosion of economic inequality since the outbreak of the pandemic from 2020, reveals new research by Oxfam and Development Finance International (DFI).
The overwhelming majority of governments cut their shares of health, education and social protection spending. At the same time, they refused to raise taxes on excessive profits and soaring wealth.
The 2022 Commitment to Reducing Inequality Index (CRI Index) is the first detailed analysis into the type of inequality busting policies and actions that 161 countries might have pursued during the first two years of the pandemic.
The index shows that despite the worst health crisis in a century, half of low and lower middle-income countries cut their share of health spending of their budgets. Almost half of all countries cut their share going to social protection, while 70 percent cut their share going to education.
As poverty levels increased to record levels and workers struggled with decades-high prices, two thirds of countries failed to raise their minimum wages in line with economic growth. Despite huge pressure on government finances, 143 of 161 countries froze the tax rates on their richest citizens, and 11 countries even lowered them.
France fell five places in the index after cutting corporate tax rates and eliminating its wealth tax altogether in 2019. Jordan dropped its budget share for health spending by a fifth, despite the pandemic. Nigeria did not update its minimum wage since before the pandemic, and the US has not raised the federal minimum wage since 2009.
"Our index shows that most governments have completely failed to take the steps needed to counter the inequality explosion created by COVID-19. They ripped away public services when people needed them most and instead left billionaires and big corporations off the hook to reap record profits. There is some good news of valiant governments from the Caribbean to Asia bucking this trend, taking strong steps to keep inequality in check," said Gabriela Bucher, Oxfam International Executive Director.
Strong actions to reduce inequality were taken by both low and middle income countries:
- Costa Rica put up its top income tax by 10 percent, and New Zealand by 6 percent.
- The Occupied Palestinian Territory increased its social spending from 37 to 47 percent of its entire budget.
- Barbados introduced a comprehensive set of laws to improve women's labor rights, and the Maldives introduced its first national minimum wage.
As Finance Ministers gather in Washington for the International Monetary Fund (IMF) and World Bank Annual Meetings, developing nations are facing a global economy that is making it ever more difficult to meet the needs of their population. While injecting trillions in their own economies, rich countries failed to increase aid during the pandemic. Economic inequality and poverty in poor countries are further exacerbated by the IMF's insistence on new austerity measures to reduce debts and budget deficits.
"The debate has catastrophically shifted from how we deal with the economic fallout of COVID-19 to how we reduce debt through brutal public spending cuts, and pay freezes. With the help of IMF, the world is sleepwalking into measures that will increase inequality further. We need to wake up and learn the lessons; preventing huge increases in inequality is completely practical, and common sense. Inequality is a policy choice, governments must stop putting the richest first, and ordinary people last", says Matthew Martin, Director of DFI.
Oxfam and DFI analysis shows that based on IMF data, three quarters of all countries globally are planning further cuts to expenditures over the next five years, totalling $7,8 trillion dollars.
In 2021, lower income countries spent 27.5 percent of their budgets in repaying their debts - twice the amount that they have spent on their education, four times that of health and nearly 12 times that of social protection.
"For every dollar spent on health, developing countries are paying four dollars in debt repayments to rich creditors. Comprehensive debt relief and higher taxes on the rich are essential to allow them to reduce inequality dramatically", said Martin.
Despite historical precedent, nearly all countries failed to increase taxation on the richest or pursue windfall profits during the COVID crisis. After the 1918 flu epidemic, the 1930s depression, and World War Two, many rich countries increased taxes on the richest and introduced taxes on corporate windfall profits. They used this revenue to build education, health and social protection systems. Taxation of the wealthiest and windfall profits can generate trillions of dollars in tax revenue.
"Government leaders in Washington face a choice: build equal economies where everyone pays their fair share or continue to drive up the gap between the rich and the rest, causing huge, unnecessary suffering", said Bucher.
Oxfam International is a global movement of people who are fighting inequality to end poverty and injustice. We are working across regions in about 70 countries, with thousands of partners, and allies, supporting communities to build better lives for themselves, grow resilience and protect lives and livelihoods also in times of crisis.
LATEST NEWS
Trump Bid to Block $4.9 Billion With 'Pocket Rescission' Blasted as 'Authoritarianism 101'
"Congress—and only Congress—passes budgets. Because the president's job is to take care the laws are faithfully executed, he must spend the money as directed," said Rep. Jamie Raskin, a constitutional scholar.
Aug 30, 2025
Democracy defenders and members of Congress are condemning US President Donald Trump's effort to use a "pocket rescission" process to block $4.9 billion in foreign aid as authoritarian and illegal.
The Office of Management and Budget (OMB) on Friday shared on social media Trump's letter to House Speaker Mike Johnson (R-La.) about the move. According to a White House fact sheet linked in a subsequent post, much of the money was headed for the US Department of State and the United States Agency for International Development (USAID), which Trump has gutted.
As The Associated Press explained:
The 1974 Impoundment Control Act gives the president the authority to propose canceling funds approved by Congress. Congress can within 45 days vote on pulling back the funds or sustaining them, but by proposing the rescission so close to September 30 the White House argues that the money won’t be spent and the funding lapses.
What was essentially the last pocket rescission occurred in 1977 by Democratic then-President Jimmy Carter, and the Trump administration argues it's a legally permissible tool despite some murkiness as Carter had initially proposed the clawback well ahead of the 45-day deadline.
Shortly after the OMB social media posts, Secretary of State Marco Rubio said that OMB Director Russ Vought was helping shutter USAID, writing on the platform X: "Since January, we've saved the taxpayers tens of billions of dollars. And with a small set of core programs moved over to the State Department, USAID is officially in closeout mode. Russ is now at the helm to oversee the closeout of an agency that long ago went off the rails. Congrats, Russ."
Meanwhile, Rubio's former congressional colleagues and others are sounding the alarm over the administration's effort.
"America is staring down next month's government funding deadline on September 30," said Senate Minority Leader Chuck Schumer (D-N.Y.). "It's clear neither Trump nor congressional Republicans have any plan to avoid a painful and entirely unnecessary shutdown. With Trump's illegal 'pocket rescission': They seem eager to inflict further pain on the American people, raising their healthcare costs, compromising essential services, and further damaging our national security."
Congressman Joaquin Castro (D-Texas) also put pressure on GOP lawmakers, saying that "this is wrong—and illegal. Not only is Trump gutting $5 billion in foreign aid that saves lives and advances America's interests, but he's doing so using an unlawful 'pocket recission' method that undermines Congress' power of the purse. I urge my Republican colleagues to say hell no."
While most Republicans on Capitol Hill have backed Trump's endeavors to claw back funding previously appropriated by Congress, GOP Sens. Susan Collins (Maine) and Lisa Murkowski (Alaska) voted against his $9 billion rescission package earlier this year.
Collins, chair of the Senate Appropriations Committee, also spoke out against Trump's new move, noting in a Friday statement that under the US Constitution, Congress has "the power of the purse," and the Government Accountability Office "has concluded that this type of rescission is unlawful and not permitted by the Impoundment Control Act."
Congressman Jamie Raskin (D-Md.), a constitutional scholar, similarly stressed that "Congress—and only Congress—passes budgets. Because the president's job is to take care the laws are faithfully executed, he must spend the money as directed. Trump's 'pocket recissions' are lawless and absurd. If a president opposes legislative spending decisions, he can veto them, subject to override, but once passed, he must execute on them."
Lisa Gilbert, co-president of the watchdog group Public Citizen, declared in a Friday statement that with the pocket rescission move, the Trump administration "demonstrated yet again its contempt for Congress' power of the purse and the Constitution's separation of powers."
"With this Constitution-mocking action, the administration is bringing us closer to a shutdown on September 30, and it doesn't seem to care," Gilbert said. "We call on Congress to push back, pass and abide by appropriations packages, and fight the administration’s illegal impoundments that harm regular Americans."
"This is not just a constitutional crisis, it's a matter of global justice," she added. "The congressionally appropriated funds that the Trump administration illegally aims to cancel support economic development programs to empower the world's most vulnerable and impoverished, and address some of the ravage of catastrophic climate change in developing nations."
Keep ReadingShow Less
Trump Tariffs Bound for Supreme Court After Another Legal Loss
If the president's policies are struck down, the administration may have to repay billions of dollars in duties, which customs and trade experts warn "would be a logistical nightmare."
Aug 29, 2025
As working-class Americans endure the pain from US President Donald Trump's tariff war, the Republican signaled that he plans to keep fighting for the levies after a loss at the US Court of Appeals for the Federal Circuit.
Trump is the first president to impose tariffs by citing the International Emergency Economic Powers Act (IEEPA) of 1977. In a 7-4 ruling, the appellate court's majority found that most of his tariffs are illegal.
The court said that "tariffs are a core congressional power" and "we discern no clear congressional authorization by IEEPA for tariffs of the magnitude of the reciprocal tariffs and trafficking tariffs."
The decision affirms a May ruling from the US Court of International Trade, which also found that Trump exceeded his authority.
Friday's ruling is paused until October 14, to give the White House time to appeal to the nation's highest court. Trump suggested he would do so in a post on his Truth Social platform, writing:
ALL TARIFFS ARE STILL IN EFFECT! Today a Highly Partisan Appeals Court incorrectly said that our Tariffs should be removed, but they know the United States of America will win in the end. If these Tariffs ever went away, it would be a total disaster for the Country. It would make us financially weak, and we have to be strong. The U.S.A. will no longer tolerate enormous Trade Deficits and unfair Tariffs and Non Tariff Trade Barriers imposed by other Countries, friend or foe, that undermine our Manufacturers, Farmers, and everyone else. If allowed to stand, this Decision would literally destroy the United States of America. At the start of this Labor Day weekend, we should all remember that TARIFFS are the best tool to help our Workers, and support Companies that produce great MADE IN AMERICA products. For many years, Tariffs were allowed to be used against us by our uncaring and unwise Politicians. Now, with the help of the United States Supreme Court, we will use them to the benefit of our Nation, and Make America Rich, Strong, and Powerful Again! Thank you for your attention to this matter.
Politico noted that the Friday decision opens the door "for the administration to potentially have to repay billions worth of duties," and pointed to recent warnings from customs and trade experts "that repayments would be a logistical nightmare, and would likely trigger a wave of legal challenges from other businesses and industry groups seeking reimbursement."
Trump's latest legal loss on the tariff front follows various analyses and polling that show the harm his policies are causing. One Accountable.US report from this month highlights comments from grocery executives about passing costs on to consumers, and a recent survey found that 90% of Americans consider the price of groceries a source of stress.
Democrats on the Joint Economic Committee also released a related report earlier this month. As JEC Ranking Member Maggie Hassan (D-N.H.) said at the time, "While President Trump promised that he would expand our manufacturing sector, this report shows that, instead, the chaos and uncertainty created by his tariffs has placed a burden on American manufacturers that could weigh our country down for years to come."
Another mid-August analysis from the Century Foundation and Groundwork Collaborative details the surging cost of school supplies as American families prepared for the 2025-26 academic year. TCF senior fellow Rachel West said that "from his reckless tariffs to his budget law slashing food assistance and federal student loans, Trump's back-to-school message to America's families is crystal clear: Don't expect help, just expect less."
Keep ReadingShow Less
US 'Denying and Revoking' Visas of Palestinian Officials Ahead of UN General Assembly
The Palestinian presidency said the decision—which comes as more and more nations formally recognize Palestine's statehood—"stands in clear contradiction to international law and the UN Headquarters Agreement."
Aug 29, 2025
The Trump administration said Friday that Secretary of State Marco Rubio "is denying and revoking visas from members of the Palestine Liberation Organization and the Palestinian Authority" ahead of next month's United Nations General Assembly in New York.
The US State Department said Friday that "the Trump administration has been clear: It is in our national security interests to hold the PLO and PA accountable for not complying with their commitments, and for undermining the prospects for peace."
"Before the PLO and PA can be considered partners for peace, they must consistently repudiate terrorism—including the October 7 massacre—and end incitement to terrorism in education, as required by US law and as promised by the PLO," the statement continues.
No US administration in modern times has ever demanded that Israel repudiate its generations-long illegal occupation and settler colonization of Palestine, its ongoing genocide in Gaza, or any other violation of international law or human rights.
"The PA must also end its attempts to bypass negotiations through international lawfare campaigns, including appeals to the [International Criminal Court] and [International Court of Justice], and efforts to secure the unilateral recognition of a conjectural Palestinian state," the State Department added. "Both steps materially contributed to Hamas' refusal to release its hostages, and to the breakdown of the Gaza ceasefire talks."
The ICC last year issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu and former Defense Minister Yoav Gallant for alleged war crimes and crimes against humanity in Gaza, including murder and the forced starvation of Palestinians that is driving a famine that has killed at least hundreds of Palestinians and is starving hundreds of thousands more. The ICJ is currently weighing a genocide case against Israel filed by South Africa—not the PA.
As for ceasefire talks, Matthew Miller, who served as a State Department spokesperson during the Biden administration, recently admitted that Israel habitually torpedoed ceasefire agreements each time they were nearing a conclusion in what he called a sustained effort to "try and sabotage" a deal. Miller repeatedly stood at his podium and told reporters that Hamas was to blame for thwarting a truce.
Miller added that Netanyahu openly admitted to US officials that he wanted to continue the Gaza war for "decades."
It is not clear which Palestinian officials will have their visas denied or revoked. The office of Palestinian Authority President Mahmoud Abbas said in a statement responding to the US announcement that "this decision stands in clear contradiction to international law and the UN Headquarters Agreement—which effectively shields UN member-state officials from US immigration policies—particularly since the state of Palestine is an observer member of the United Nations."
This isn't the first time the US has blocked Palestinian officials from attending a General Assembly. In 1998, the Regan administration denied then-PLO Chair Yasser Arafat a visa and the General Assembly was convened in Geneva instead of New York. There have already been numerous calls to relocate this year's General Assembly to the Swiss city following the US move.
The US announcement comes as more and more countries formally recognize Palestinian statehood or move to do so amid Israel's genocidal assault, siege, and famine in Gaza, which, combined, have left more than 230,000 Palestinians dead, maimed, or missing and the strip in ruins.
Approximately 150 of the UN's 193 member states have officially recognized Palestine. Since October 2023, countries including Australia, Belgium, Canada, France, Malta, Portugal, Slovenia, the United Kingdom, Ireland, Norway, and Spain have either recognized Palestine or announced their intent to do so.
Keep ReadingShow Less
Most Popular