News that 358 people own as much wealth as half the world's population will come as no surprise to regular readers of this journal. Neither will socialists be alarmed at similar findings published in the 1996 Human Development Report prepared by the United Nations Development Programme (UNDP).
What is at first remarkable, however, is that the report's findings come during the International Year of Poverty. Yes, this is the year—a year set aside by those who set years aside for special problems—in which we are supposed to be solving the problem of global inequality and, yes, you’ll be forgiven for thinking that socialism is the panacea recommended by the report.
“There was plenty for the pessimist," wrote Martin Jacques of the report (Observer, 21 July)—though we would have preferred the term "realist”—having pointed out that since 1980 over 100 countries have had stagnant or declining incomes that have reduced living standards for 1.6 billion people.
Presumably we are supposed to feel "optimistic" about the 15 countries that have experienced economic growth during this period, even if, like Singapore, freedom of speech has been outlawed.
The report also reveals that whereas the world’s richest 20 percent were 30 times as wealthy as their poorer counterparts then, they are now 61 times as wealthy.
What the Observer found "encouraging” was the report’s use of a human development index, whereby not only GDP per capita, but also illiteracy, enrolment in education and life expectancy are also taken into consideration. By which measure “virtually every country in the world has improved its lot since 1980. In sub-Saharan Africa life expectancy rose from 46-51 ’’. But the downside is that, if followed to its logical conclusion, your average sub-Saharan African was enabled to be exploited for a further five years by the master class, enduring, en route, poverty, starvation, disease, civil war and the certainty that at death their dependants would fair no better.
Interestingly, the UNDP administrator, James Speth, believes "the world has become more economically polarised" and that "if present trends continue, economic disparities between industrial and developing nations will move from inequitable to inhuman" (Observer, ibid.).
In spite of this assertion, in spite of the simple fact that global inequality is so inextricably linked to the present insane profit system. Richard Jolly, the compiler of the report, and special adviser to Mr Speth, reasons that the problem can be tackled within the context of capitalism and has put forward a three-pronged strategy to reverse the trend: ". . . a target of 3 per cent capita growth in the poorest countries, an emphasis on making expansion sustainable and more equitable, and action to avoid the five forms of undesirable growth”. Which the UN describes as:
"jobless growth, ruthless growth where only the rich benefit, anti-democratic voiceless growth, unsustainable futureless growth, and rootless growth, which tramples on cultural identities" (Guardian, 16 July).
Of course, there is about as much hindsight and foresight here as an IMF structural adjustment programme. Growth is dependent, for instance, on investment and the building up of the industrial, private and public sectors in poor countries—all of which becomes impossible because of debt repayment schemes and because any country wishing to speed up development will become competitive and import less, which runs counter to the interests of the larger and wealthier capitalist nations who can easily out-compete and consequently halt the ambitions of their poorer counterparts.
Neither can expansion be really sustainable. Sooner or later a point is reached that capitalism cannot accommodate. “Too much” is produced and profits fall. Hence global booms and recessions.
In truth, the only way capitalism can be run is as it is now. This is the raison d'etre of capitalism, profit at any cost, in the interest of the minority and at the expense of the majority. And just as it is an unavoidable fact that capitalism creates the exploiter and the exploited in any given country, so it is the case that if some countries are to thrive, others must face ruin at their expense.
There can be no strategy or plan or panacea to remedy what is, after all, the logic of capitalism, within the context of capitalism. The only solution remains to abolish the system entirely and to establish socialism. The abolition of the profit system, money, wages, frontiers and borders, social classes and leaders, and the establishment of a global system based on community ownership and democratic control of productive wealth is the only way to end a system where one Bill Gates, founder of Microsoft, can purchase six of the world’s poorest countries.
Commenting on the UNDP report, Victor Keegan, writing in the Guardian (22 July), said: “Never in the history of the world have they [the rich] been present in such quantities and in such flamboyant contrast with the poor as now." We might add: “and never has the case for world socialism been so pressing".
John Bissett












