Oxfam says that while this is a good idea that should be implemented quickly, it is a long way from being a magic bullet.Įven the most expansive CAF reforms would unlock just $1 trillion, which is a long way from $27.4 trillion needed. “Capital Adequacy Framework” (CAF) reforms would allow Multilateral Development Banks to increase the volume of their lending without government shareholders having to pay in more money. Billions upon billions of windfall profits, riding on a cost-of-living crisis, have filled the pockets of rich shareholders,” Behar said. “Our economic system continues to shovel trillions of dollars into the hands of the wealthiest elite. “To anyone who would dismiss meeting aid promises as unrealistic, remember that rich countries could raise more than $1 trillion each year if they were willing to tax the rich. “To anyone who would dismiss an $11.5 trillion climate debt swap as radical, remember that rich countries raised about as much in response to Covid-19,” said incoming Oxfam International interim Executive Director Amitabh Behar. Just one measure – a progressive net wealth tax of up to 5% – could add around $1.1 trillion to donor (OECD DAC) country budgets each year. Progressive wealth taxes and Special Drawing Rights (SDRs) would be enough to fund these common-sense policies and more, with enough left over for rich nations to make inequality-busting investments at home. Oxfam calls for rich countries to borrow $11.5 trillion to fund an historic “climate debt swap” with poorer countries, in addition to finally honoring their aid commitments, of which they are in arrears to the tune of $6.5 trillion. New Oxfam analysis describes a $27 trillion black hole - accumulating at around $3.9 trillion a year to 2030 - that low- and middle-income countries face to meet climate-related loss and damages, adaption, and mitigation measures, along with their health, education and social protection needs.Īll of these investments are crucial to tackling economic and gender inequality.ĭespite today’s dire reality of austerity and climate change that hit the world’s poorest people, women, and marginalized groups hardest, rich countries meeting at the World Bank Spring meetings in Washington today (April 10-16) are discussing reforms that are likely to unlock only a tiny fraction of the financing needed.
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