A/HRC/31/61 rights without discriminatory outcomes. 23 When economic inequality results in such discriminatory outcomes, it becomes a human rights issue. 28. Global inequality currently stands at extremely high levels. The United Nations Development Programme (UNDP) reports that the richest 8 per cent of the world’s population earn half of its total income, leaving the other half for the remaining 92 per cent.24 Oxfam has shown that, in 2014, the richest 1 per cent of people in the world owned 48 per cent of global wealth — up from 44 per cent in 2010 —, leaving 52 per cent of global wealth to the remaining 99 per cent of the world’s population. Oxfam predicts that, by 2016, half of global wealth will be concentrated among the top 80 individuals. Over the past two decades, income inequality has increased by 9 per cent in developed countries and 11 per cent in developing countries. 25 The Independent Expert shares the sentiment of the Special Rapporteur on extreme poverty and human rights, Philip Alston, who recently denounced such extreme inequality, calling it a “cause for shame”.26 29. Extreme economic inequality threatens to undermine human rights. For example, income inequality prevents millions of individuals from enjoying social and economic rights on a non-discriminatory basis, such as access to adequate housing, food, health care and sanitation. This is particularly true if such inequality is not addressed by policies ensuring access to these rights, for example, through social welfare and protection. UNDP has calculated that, in 2012, 23 percentage points in the Human Development Index were lost owing to inequality. This can also result in negative feedback effects: a weakened tax base leads to poor social services and unequal treatment, which leads to the erosion of trust in government and to low taxpayer morale, which further weakens the tax base. It can also threaten the right to political participation, since outsize political influence by the rich can undermine democratic processes. Moreover, reminders of sharp differences in wealth can influence the way people view themselves and others, and can threaten the equal participation of citizens in political and public life.27 30. The Independent Expert welcomes the call from Special Rapporteur on extreme poverty for the Human Rights Council to recognize explicitly that there are limits to the levels of inequality that can be considered compatible with respect for human rights, and for States to make formal commitments to reducing extreme inequality. 28 C. Relationship with sustainable development goals 31. Curbing tax abuse and illicit financial flows is not only essential for realizing human rights, but also for achieving sustainable development. Making progress on target 16.4 of the Sustainable Development Goals on reducing illicit financial flows will make an important contribution not only to achieve various other goals included in the Agenda 2030 for Sustainable Development, but also to the enjoyment of human rights. 23 24 25 26 27 28 R. Balakrishnan, J. Heintz and D. Elson, “What does inequality have to do with human rights?”, Political Economy Research Institute, Working Paper Series No. 392 (2015); see also the annual report of the Independent Expert (A/HRC/31/60). See UNDP, Humanity Divided: Confronting Inequality in Developing Countries, p. xi (New York, 2013). See “Wealth: having it all and wanting more”, Oxfam issue briefing, pp. 2, 3 and 7 (2015). See the report of the Special Rapporteur on extreme poverty and human rights (A/HRC/29/31) and his oral statement from 22 June 2015 to the Human Rights Council, available from www.ohchr.org/EN/NewsEvents/Pages/DisplayNews.aspx?NewsID=16131&LangID=E. See UNDP, Humanity Divided, pp. xi, 1 and 5-6 (footnote 26). See oral statement by the Special Rapporteur on extreme poverty and human rights (footnote 27). 9