No one would object if the rich simply became richer. The problem lies in the one-sided shift of wealth. If the rich grow richer while the poor grow poorer, then a tragic tug-of-war begins. Economic crisis triggers social crisis, which in turn leads to political crisis that undermines the democratic system. In short, social inequalities cause huge political upheavals, something we are also witnessing in the EU, with the rise of far-right and other forces leaning toward fascism.
According to data compiled by the website BestBrokers from the open-source World Inequality Database, which covers 217 countries, wealth inequality is steadily widening across the globe.
In a recently published report on wealth inequality, analysts found that in China, the richest 10% of the population experienced the most dramatic increase in wealth concentration. Their share of national wealth rose from 48.3% in 2000 to 68% in 2023, an increase of nearly 20 percentage points. In South Africa, the wealth gap is the largest, with the richest 10% holding about 85.8% of the country’s total wealth.
Where does Cyprus stand? According to the same report, Cyprus recorded one of the sharpest increases in wealth concentration in Europe, with the share of national wealth held by the top 10% rising by 16 percentage points, from 50.7% in 2000 to 66.7% in 2023. The report notes that “between 2007 and 2020, the CIP [Cyprus Investment Programme] attracted wealthy foreign investors and drove up property prices.”
In short, the top 10% of the population in Cyprus controls 67% of the country’s wealth, while the remaining 90% controls just 33%.
These figures point to massive inequalities, highlight the rapid shrinking of the middle class, and foreshadow a political crisis that will primarily hit the parties of the democratic spectrum.