Press room

Tax on the “private” billions now stashed away in havens enough to end extreme world poverty twice over

Joel M Bassuk — Tue, 21 May 2013 23:00:01 +0000

At least $18.5 trillion is hidden by wealthy individuals in tax havens worldwide, representing a loss of more than $156 billion in tax revenue, according to new figures published today by international agency Oxfam.

At least $18.5 trillion is hidden by wealthy individuals in tax havens worldwide, representing a loss of more than $156 billion in tax revenue, according to new figures published today by i

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It’s scandalous that so much money is allowed to sit untaxed, letting off the hook those individuals who can most afford to pay for public goods and services.

Kevin Rousell

Head of Oxfam's Essential Services Campaign

Notes to Editors

Poor countries lose $160 billion per year to corporate tax dodging according to Christian Aid.

To end extreme poverty would mean providing every person in the world with a minimum income of $1.25/day. This would cost $66 billion, according to the Brookings Institute in the US.

Explanation of Oxfam’s figures

To calculate total wealth held by individuals in tax havens:

Oxfam estimated that 19.5 per cent of global deposits are held by foreigners in tax havens. The 19.5% figure is based on evidence collected from the following sources: the Bank of International Settlements (BIS) quarterly reviews (of the external holdings of banks in a set of tax havens) and the estimates of national authorities such as the Dutch Central Bank and IMF for certain countries’ compliance with anti-money laundering standards.

We then applied the 19.5% figure to all assets, because there is no credible data available for the ratio for other financial assets. Tax rates are usually the same for different asset classes (as is the case with capital gains for instance) meaning there is no incentive to prioritize other assets over and above deposits.

The 19.5% is a conservative estimate in itself though, because in fact domestic depositors could also be foreign depositors set up as domestic ‘fronts’. It is impossible to differentiate between the two because of a lack of transparency.

The Credit Suisse Global Wealth Databook estimates that total net financial wealth was 2012 to $94.7 trillion (excluding property). Using the 19.5% proportion, we end up with a total of $18.5 trillion held offshore.

How Oxfam calculated the $156 billion figure:

We only looked at assets offshore that are not reported to tax administrations (assuming that declared assets are being taxed). Helvea estimates that declared assets represent only 16%, leaving us with an amount of $15.54 trillion (84% of $18.5 trillion).

We then looked at the assets’ return (the “interest”) generated by having this money in offshore bank accounts. We use a 3.5% asset return as a conservative but appropriate yield, based on Credit Suisse Investment Yearbook 2013 (which says that balanced equity and bond funds would yield 2% real returns, then to get nominal returns we add US inflation of 1.5%). This is a conservative estimate because the current inflation rate is low (it is a current low rate, rather than a higher average of recent rates), and it is lower than the average returns offered by private funds advertised by clients.

Finally, we looked at individual country tax rates on foreign assets, reported in the PWC World Wide Tax Summaries, and calculated each one individually and then added them up. The total is $156.31 billion.

Who is considered as a tax haven:

Oxfam used the list of 50 “offshore jurisdictions” established by the US Government Accountability Office and added two other major tax havens: Delaware and the Netherlands. Of these jurisdictions, 21 are EU-related jurisdictions and 10 are UK (Anguilla, Bermuda, British Virgin Islands, Cayman Islands, Gibraltar, Guernsey, Isle of Man, Jersey, Montserrat and the Turks and Caicos Islands).

Contact Information

For more information, please contact Caroline Hooper-Box +1 202 496 1173
caroline.hooper-box@oxfaminternational.org

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Radical change needed in way world deals with ever increasing numbers of people at risk of calamity

Joel M Bassuk — Tue, 21 May 2013 09:30:49 +0000

Governments and aid agencies have to tackle the politics and power at the heart of the increasing effects of climate change, rising inequality and people’s vulnerability to disasters according to a new report published today by international agency Oxfam.

It’s all about power and politics

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Vulnerability is not a random twist of fate. While rich countries reap the benefits of carbon-spewing economic growth, those in the world’s poorer countries suffer the consequences.

Debbie Hillier

Oxfam Humanitarian Policy Advisor

Notes to Editors

Download the report: No Accident: Resilience and the inequality of risk

Watch the video explaining the 'No Accident' report: http://www.youtube.com/watch?v=a1bpOxtS_Gw

Contact Information

For more information contact:
Ian Bray, Oxfam Press Officer, +44 (0)1865 472289, +44 (0)7721 461 339

Cyclone Mahasen: Oxfam working with Bangladesh government and other agencies to assess needs

Joel M Bassuk — Mon, 20 May 2013 15:37:51 +0000

Oxfam is supporting international efforts to assess needs in Patukhali, Barguna and Bhola, the three districts worst hit by Cyclone Mahasen that hit Bangladesh on 16 May.

Dhaka, 20 May 2013 - Oxfam is supporting efforts by international agencies to effectively assess needs in Patukhali, Barguna and Bhola, the three districts worst hit by Cyclone Mahasen that lashed

We are committed to supporting communities for the long term.

Gareth Price-Jones

Oxfam Country Director, Bangladesh

Contact Information

For further info or media interview, please contact Abdul Quayyum at +880 1713060151.

Oxfam warns of health risks to Syria refugees as summer approaches

Joel M Bassuk — Mon, 20 May 2013 09:20:08 +0000

With temperatures set to soar up to 104ºF (40˚C) in the coming weeks, international agency Oxfam has warned that the warmer weather will increase health-related risks for Syrian refugees.

With temperatures set to soar up to 104ºF (40˚C) in the coming weeks, international agency Oxfam has warned that the warmer weather will increase health-related risks for Syrian refugees.

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With high summer right around the corner, refugees living in poor sanitary conditions are facing serious risks of diseases.

Rick Bauer

Oxfam Regional Humanitarian Coordinator

Notes to Editors

Footage available to download:
http://wordsandpictures.oxfam.org.uk/?c=13921&k=2bdfff1cd0

For photos (free of rights):
http://wordsandpictures.oxfam.org.uk/?c=13913&k=e6932c57ca

For more information about the humanitarian activities in the region:
http://data.unhcr.org/syrianrefugees/regional.php

For more data from the Ministry of Public Health in Lebanon:
http://www.moph.gov.lb/Prevention/Surveillance/Pages/CurrentYear.aspx

*** Over the next two weeks Oxfam will be handing over 48 washing units serving more than 8,000 refugees in Zaatari Camp - journalists' visits and interviews on site can be arranged.

Contact Information

Louis Belanger, Oxfam Humanitarian Media Officer
In Lebanon +961 360 7348
USA +1 917 224 0834 |
skype: louisoxfam
Twitter: @louis_press

Rising debt and falling aid force poor countries to cut spending on health and farmers

Ester Castanyer — Thu, 16 May 2013 07:08:11 +0000

Poor countries are cutting back investment in farming, health service and services to help women because of fears about rising debts and the impact of the economic crisis, according to a new database launched today.

Poor countries are cutting back investment in farming, health service and services to help women because of fears about rising debts and the impact of the economic crisis, according to a ne

Rising levels of debt are forcing poor countries to cut support to the poorest at a time when they need additional protection.

Stephen Hale

Oxfam

Notes to Editors

The Government Spending Watch database can be viewed at www.governmentspendingwatch.org

The report identifies major gaps in data relating to developing country spending in different areas but this was mainly at a detailed level – eg capital vs concurrent spending. It did not affect the top line conclusions about levels of spending on different sectors.

Targets

Countries’ spending on agriculture is measured against the commitment of African governments to spend at least 10 per cent of national budgets on agriculture by 2008 (the Maputo commitment). The target has been supported by the World Bank. 19 per cent of countries are meeting this target.

Education expenditure is measured against the target to allocate 20 per cent of national budgets to the sector – a target agreed as part of the Education For All Fast Track Initiative. 24 per cent of countries are meeting this target.

Health spending was measured against both the World Health Organization target of $30-40 per capita – a rate it calculates is necessary to fund essential interventions to avoid preventable debts. 37 per cent of countries are meeting this. Only 3 per cent are meeting the Abuja target to allocate 15 per cent of spending to health.

The International Labor Organization estimates that governments need to spend at least 2.9 per cent of GDP on social protection to provide even basic safety nets. No country is close to meeting that target.

African Union ministers have set a spending target of 0.5 per cent of GDP on water, sanitation and hygiene (WASH) while the UNDP estimate that 1 per cent is needed to halve the proportion of people without access to safe water and sanitation. 23 per cent of countries are spending at least 1.5 per cent of GDP on WASH.

There are no targets on environment or gender.

Contact Information

For further information or a copy of the report:

Jon Slater: +44 1865 472249/ +44 7876 476403/ jslater@oxfam.org.uk

Oxfam and IPL release joint report investigating poverty issues in the supply chain of major UK supermarkets

Elena Cornellana — Wed, 15 May 2013 11:49:49 +0000

A new report, Exploring the Links Between International Business and Poverty Reduction: Bouquets and Beans from Kenya, has been released by Oxfam and International Procurement and Logistics (IPL).

A new report, Exploring the Links Between International Business and Poverty Reduction: Bo

It is clear that, with 1 in 8 people in the world without enough to eat, this is a system that is not fit for purpose.

Mark Goldring

Oxfam chief executive

Notes to Editors

As the UN Framework on Business and Human Rights makes clear, companies have a responsibility to respect the human rights, including labour rights, of all people involved in or affected by their business. That is why Oxfam has campaigned over many years to ask companies to take action to improve the situation of workers in their global supply chains, and participates in multi-stakeholder initiatives which raise awareness and share best practice between companies, trades unions and non-governmental organisations, such as the UK-based Ethical Trading Initiative and the global alliance Play Fair.

Contact Information

For further information, please contact Claire Wilkinson, Oxfam press office on +44(0)1865 473648/ +44 (0)7825 196769 / cwilkinson@oxfam.org.uk

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Mali needs reforms and smart aid to stop its slide and help “win the peace”

Ester Castanyer — Tue, 14 May 2013 23:01:32 +0000

International donors must help Mali to rebuild its ability to govern itself and stop its slide into economic ruin if it is to “win the peace” following the French-led military intervention, says Oxfam.

International donors must help Mali to rebuild its ability to govern itself and stop its slide into economic ruin if it is to “win the peace” following the French-led military intervention,

Crisis in Mali

Donors need to help build the foundations for genuine prosperity in Mali. Otherwise they’ll have left the job half done.

Marietou Diaby

Oxfam’s Country Director in Mali

Contact Information

Contacts:

Brussels: Angela Corbalan on +32473562260 or angela.corbalan@oxfaminternational.org
Paris: Pierre Motin on +33612126394 or pmotin@oxfamfrance.org
Mali: Habibatou Gologo on +22366752553 or HGologo@oxfam.org.uk
Dakar: Marie Balde on +221772901832 or mbalde@oxfam.org.uk

Swifter action is required to protect conflict displaced people from approaching Myanmar cyclone

Elena Cornellana — Tue, 14 May 2013 09:08:26 +0000

Oxfam says concern is growing over the potential impact of cyclone Mahasen on people displaced by ethnic conflict in the Western state of Rakhine in Myanmar.

Oxfam says concern is growing over the potential impact of cyclone Mahasen on people displaced by ethnic conflict in the Western state of Rakhine in Myanmar.

The government must not neglect isolated communities which could become forgotten.

Jane Lonsdale

Acting Country Director for Oxfam in Myanmar

Notes to Editors

140,000 people have already been displaced by ethnic conflict in the Rakhine, many in unsuitable locations at risk of flooding if heavy rains occur as a result of secondary impact from the cyclone
The UN has estimated that at least 45,000 people could be directly affected by the cyclone
Oxfam in Myanmar has been working with local partners and local authorities to provide a humanitarian response on water, sanitation and hygiene to IDPs in three camps in the Kyawphyu area of Rakhine (Kan Nyin Taw, Kyauk Ta Lone and Ramree) since January 2013.

Contact Information

Jasmine Burnley, Policy and Communications Officer, Oxfam in Myanmar

+95-1 378 794 / 795 / 796
+959 4200 38879
jburnley@oxfam.org.uk

Signs of progress following US-Russia Syria talks, but more action needed

Elena Cornellana — Wed, 08 May 2013 13:37:35 +0000

Talks yesterday on Syria between US Secretary of State John Kerry and Russian President Vladimir Putin and Foreign Minister Sergei Lavrov offered modest signs of progress towards alleviating the humanitarian situation, halting the violence, and achieving a political solution.

Nearly seven million people require humanitarian assistance in Syria. Another 1.4 million seeking refuge in neighboring countries are in desperate need of shelter, food, and water.&n

Crisis in Syria

The status quo is simply unacceptable. Prolonged conflict will result in more death, displacement and suffering, and threatens to destabilize the region.

Noah Gottschalk

Senior Humanitarian Policy Advisor

Contact Information

MAURA HART | Senior Press Officer

New York +1 (202) 476 0093 and mhart@oxfamamerica.org

Africa’s growth must benefit all its citizens

Laurent Le Gouanvic — Mon, 06 May 2013 08:50:52 +0000

Africa’s remarkable growth, driven in large part by a minerals and energy boom, is threatened by illicit capital outflows and widening income gaps.

Africa’s remarkable growth, driven in large part by a minerals and energy boom, is threatened by illicit capital outflows and widening income gaps, international agency Oxfam has warned ahe

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Africa is taking control of its own destiny, but to meet its real potential our leaders must stand behind those who growth is leaving behind.

Winnie Byanyima

Oxfam International Executive Director

Notes to Editors

The European Union last month agreed a deal on a law that will make oil, gas, mining and logging firms companies declare payments to governments, as part of efforts to help fight tax evasion and corruption in resource-rich countries. This comes after legislation passed in the United States under the 2010 Dodd-Frank financial reform law, requiring oil and mining companies to disclose payments to foreign governments. The US regulation covers about 1,100 public companies engaged in oil, natural gas or mineral extraction. These are important steps in fighting tax evasion and corruption in resource-rich countries.

Contact Information

For further inquiry, please contact:

Caroline Hooper-Box: +1 202 321 2967 / Caroline.hooper-box@oxfaminternational.org

Press room

Tax on the “private” billions now stashed away in havens enough to end extreme world poverty twice over

Notes to Editors

Explanation of Oxfam’s figures

How Oxfam calculated the $156 billion figure:

Who is considered as a tax haven:

Contact Information

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