In a time when a tiny number of extremely wealthy individuals and businesses control the majority of the wealth, the painful reality of financial exclusion and inequality has become increasingly evident. The wealth levels that these modern “giants”—the top 1% who control a tremendous percentage of the world’s resources—have amassed are both historically high and deeply unsettling.
Their opulent lifestyles, marked by vast estates, private jets, and tax havens, offer a stark contrast to the appalling circumstances that billions of people experience globally as a result of being trapped in a cycle of poverty and financial marginalisation (Oxfam International, 2019). A fundamental divide between the wealthy and the poor, which has grown to such an extent that it is now threatening the entire foundation of our international community, is at the core of this problem. According to research by Oxfam, the 26 wealthiest people in the world own as much wealth as the world’s poorest 3.8 billion people put together (Oxfam International, 2019).
This fact should shock the conscience of every citizen. These titans have successfully manipulated the system to benefit themselves, maintaining a status quo that supports their interests at the expense of the general public, thanks to their enormous economic and political power. They have been able to restrict competition and further solidify their dominance by influencing laws, regulations, and tax laws through their lobbying efforts and political contributions (Stiglitz, 2012). This imbalance has far-reaching and extremely destabilizing effects. Lack of access to fundamental financial services like banking, credit, and insurance has emerged as a major obstacle to economic empowerment and upward mobility in developing countries and underprivileged populations (Demirgüç-Kunt et al., 2018).
Millions of people are trapped in a never-ending cycle of debt and poverty as a result of having to rely on unscrupulous lenders and check-cashing firms that demand outrageous fees (Morduch & Haley, 2002). When there is a lack of a strong financial system and reasonably priced services, those who are less fortunate are unable to break the cycle of poverty by not having access to the resources and skills they need to change their situation (Consultative Group to Assist the Poor [CGAP], 2015). Furthermore, there are wider societal ramifications when financial inclusion is lacking. Entire communities are essentially shut out of the mainstream economy, preventing them from saving money, accumulating assets, or obtaining loans to launch enterprises.
This effectively keeps them impoverished for generations to come and restricts their ability to advance (World Bank, 2020). This then has a knock-on effect on health, educational attainment, and general quality of life, resulting in a vicious cycle of disadvantage that gets harder and harder to escape. The unfortunate reality that feeds the cycle of poverty, generation after generation, is that children reared in homes without access to financial services are more likely to suffer from hunger, drop out of school, and encounter obstacles to upward mobility (United Nations, 2016). The discrimination that still exists in the financial industry is also cause for concern.
Systemic prejudices related to gender, colour, immigrant status, and other characteristics still determine who is able to obtain finance and financial services. Women, in particular, confront many obstacles; according to a World Bank assessment, they make up a disproportionate share of the unbanked population worldwide (World Bank, 2014). The advancement of entire civilizations is eventually hampered by the gender gap, which not only maintains economic inequality but also undercuts initiatives to empower women and accomplish sustainable development goals (Klapper & Hess, 2019). It is a harsh irony that millions of people continue to be denied access to the fundamental financial resources and tools that may pull them out of poverty at an era of unparalleled technological growth and global interconnectedness.
Even though initiatives to increase financial literacy, microfinance programmes, and mobile banking solutions have helped to accelerate efforts to promote financial inclusion in recent years, these initiatives frequently fall short in the face of the massive global financial system, which the giants have carefully built and reinforced to serve their own interests (GSMA, 2019). The truth is that real equality and financial inclusion cannot be attained unless the fundamental tenets of this system are questioned. The ultra-wealthy people who hold disproportionate power, the too-big-to-fail banks, and the multinational businesses need to be restrained through strict regulation, progressive taxes, and a comprehensive reorganisation of the world economy (Gilens & Page, 2014).
This is a recognition that the existing system is fundamentally unjust and unsustainable rather than a call for the outright redistribution of wealth, or the end of capitalism. It is a system that encourages a race to the bottom when it comes to labour and environmental norms, places a higher priority on short-term profits than long-term sustainability, and promotes financial engineering and speculation over wise investment (Credit Suisse Research Institute, 2018). It is a system that has left billions behind while allowing the giants to amass riches and power on an unparalleled scale. We need to shift to a more localised, decentralised, and sustainable economic model that promotes ethical business practices, empowers communities, and puts the needs of people and the environment ahead of unbridled growth and greed if we are to actually achieve financial inclusion and equality (Stiglitz, 2012).
This could entail taking steps to support worker-owned cooperatives, boost local economies, and make investments in sustainable agriculture and renewable energy. It also entails making sure businesses pay their fair share of taxes and holding them responsible for their effects on society and the environment. This shift won’t be simple because the giants will surely fight any attempt to reduce their clout and influence. They will use all of their enormous resources, including their legions of attorneys and lobbyists, to uphold the status quo that has been so beneficial to them (Gilens & Page, 2014). However, we must continue because the alternative-a society in which the gap between the affluent and the poor keeps growing-is intolerable. It is a route that eventually results in the collapse of the institutions that support our global civilization as well as additional social turmoil and environmental damage (European Union Agency for Fundamental Rights, 2020).
In the end, the fight for equality and financial inclusion is not just an economic one; it is also a moral one that goes right to the core of our humanity. It is absurd that billions of people remain in extreme poverty in a world of plenty where innovation and technology have unlocked hitherto unrealised potential, depriving them of the means to improve their own and their families’ quality of life (World Bank, 2020). A paradigm change is required along with a significant rearrangement of our values and priorities. Instead of supporting the idea that a small number of powerful people should hold all the wealth and power, we should embrace a more egalitarian and inclusive world where everyone has the chance to pursue their goals and become part of the mainstream economy without being constrained by institutionalised discrimination or unfair practices (Demirgüç-Kunt et al., 2018). If we have the bravery and the strength of character to stand up to the giants and demand change, this is a realistic and attainable objective rather than a Utopian dream.
We have tolerated a system that puts the interests of the few over the welfare of the many, profit over people, and greed over justice for far too long (Stiglitz, 2012). Because we have enabled the giants to set the conditions of our economic reality, billions of people have been left behind in a cycle of inequality and exclusion (Credit Suisse Research Institute, 2018). It’s time to take back the reins, change the laws, and create a society where equality and financial inclusion are more than just catchphrases but rather everyone’s everyday reality (European Union Agency for Fundamental Rights, 2020). Though the road ahead will not be easy, the alternative-a world where the superpowers continue to expand unbridled, accumulating ever-greater riches and power at the expense of the common people-sis intolerable. It is a route that eventually results in the collapse of the institutions that support our global civilization as well as additional social turmoil and environmental damage (United Nations, 2016).
We must decide whether to follow the current course of financial exclusion and inequality or to construct a new course that will result in a future that is more egalitarian, just, and sustainable for all (Consultative Group to Assist the Poor [CGAP], 2015). Even though the giants are powerful, they are not unbeatable. Together with unflinching resolve and a common commitment to justice, we can defeat these contemporary Goliaths and build a society in which equality and financial inclusion are the rule rather than the exception (Morduch & Haley, 2002). It is an undertaking that will call for audacious action, inspiring leadership, and a readiness to take on deeply ingrained power systems. However, it’s a work we must do because it will determine our planet’s future and the welfare of future generations (GSMA, 2019).
• Prisca Chiamaka Okocha-Ojeah, a final year Economics student at Pan-Atlantic University can be reached via 09128504770 or priscaojeah@gmail.com.
