Photo: Gürcan Öztürk/Deep Poverty Network
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According to a new Oxfam report, the wealthiest one percent owns 41 percent of the country's total wealth, making it the third most unequal country among 161 countries.
According to the 2022 Index of Commitments to Reducing Inequality (CRI Index) by Oxfam and Development Finance International (DFI), economic inequalities have exploded in both developed and developing countries during the pandemic since 2020. The vast majority of countries reduced their expenditure on health, education, and social protection, despite the worst health crisis of the last century.
The 2022 Commitment to Reducing Inequality (CRI) Index covers the spending, tax and labor policies and actions of 161 governments during 2020–2022, the first two years of the pandemic. During this period, poverty rose to a record high, and workers struggled with unprecedented price increases. Regardless, two-thirds of the countries in the index did not increase their minimum wages, even at the rate of economic growth recorded during the pandemic. Moreover, 143 of 161 countries kept the tax rates for the wealthiest on the same level, while 11 countries lowered them.
As for Türkiye, the report indicated:
- Türkiye's general ranking in the index, compared to other OECD countries, is at the lowest with 74th place. Furthermore, when it comes to social expenditures, Türkiye is also still the lowest among OECD.
- Türkiye is among the last 10 countries regarding trade union rights. Furthermore, when it comes to women's workers, that paternity leave remains limited to a few days, and women can only receive 2/3 of their wages during maternity leave.
- Türkiye increased its corporate tax and income tax rates in the last two years, however, the collection rates of these taxes are meager (17 percent and 16 percent, respectively). Therefore, the effect of taxes on reducing inequality is still low, marking Türkiye low in 114th place in this category.
- When it comes to the ratio of the minimum wage to gross domestic product per capita. Türkiye experienced a severe drop, as the ratio of the minimum wage to gross domestic income per capita fell from 60 percent to 50 percent in the last two years. (EMK/WM/VK)
Click to read the full report
