G20 Taskforce Urges Creation of Global Panel to Confront ‘Inequality Emergency’
Richest 1% hoard 41% wealth; world faces democracy meltdown.
A groundbreaking G20 taskforce, spearheaded by South African President Cyril Ramaphosa, has issued an urgent call for an international panel to confront the escalating "inequality emergency," likening its threats to those of climate change. Chaired by Nobel laureate Joseph Stiglitz, the Extraordinary Committee of Independent Experts warns that unchecked wealth gaps are eroding democratic institutions and fueling economic turmoil worldwide. This pioneering initiative, the first of its kind in G20 history, underscores South Africa's presidency priorities amid rising global discontent over mismanaged globalization and unfair resource distribution.
The committee's comprehensive report reveals stark disparities, with the world's richest 1% capturing 41% of all new wealth generated since 2000, while the poorest 50% have seen just a 1% increase, per data from the World Inequality Lab. Stiglitz emphasized that this imbalance extends beyond moral outrage, stating, "It isn't just unfair and undermining societal cohesion—it's a problem for our economy and our politics too." The analysis highlights how high inequality correlates with democratic backsliding, affecting 83% of countries and 90% of the global population under the World Bank's criteria.
In response, the taskforce proposes modeling a new inequality panel on the Intergovernmental Panel on Climate Change (IPCC), tasked with ongoing surveillance of inequality drivers, impacts, and policy solutions for governments. This body would provide evidence-based guidance to mitigate risks, much like IPCC reports have shaped climate action. The report attributes recent surges to a "perfect storm" of crises—including COVID-19, the Ukraine conflict, and trade frictions—exacerbating poverty, with one in four people worldwide skipping meals regularly and billionaire fortunes reaching unprecedented peaks.
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Experts project an even graver outlook, forecasting over $70 trillion in inherited wealth transfers over the next decade that could further entrench divides without intervention. Drawing from prominent voices like UNAIDS Executive Director Winnie Byanyima and economist Jayati Ghosh, the committee urges G20 nations to view inequality not as inevitable but as a policy choice ripe for reversal through targeted reforms in taxation, trade, and social spending.
The taskforce's findings are slated for presentation to G20 leaders at their Johannesburg summit this November, a pivotal moment before the United States assumes the rotating presidency at year's end. As nations grapple with these revelations, the call for a dedicated panel signals a potential shift toward equitable global governance, challenging policymakers to act decisively or risk deepening the fractures threatening collective progress.
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