(Nov 4): The Group of 20’s (G20) first report on inequality called for the creation of a panel to help governments confront a deepening crisis that is undermining democracy.
The report by a group of experts led by Nobel-prize-winning economist Joseph Stiglitz recommended that the panel monitor inequality trends, assess the drivers and evaluate alternative possible solutions, according to an emailed statement on Tuesday.
“The world understands that we have a climate emergency; it’s time we recognise that we face an inequality emergency too,” Stiglitz said in the statement. “Our committee felt strongly that some of the worst effects of inequality are on democracy.”
Anger fanned by poverty and a lack of jobs sent thousands of people onto the streets in so-called Gen Z demonstrations that have toppled governments in Madagascar and Nepal, while propelling populist leaders including US President Donald Trump to power.
Stiglitz and his colleagues were commissioned by South Africa, which currently holds the rotating presidency of the G20. They found that the world’s wealthiest 1% captured 41% of all new wealth between 2020 and 2024, while just 1% went to the bottom 50%.
South African President Cyril Ramaphosa asked the panel to develop proposals to help ease the wealth gap. Its recommendations also include reforming international rules on issues such as intellectual property rights and tax.
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Ramaphosa will hosts a G20 summit of leaders this month in Johannesburg before handing the presidency of the group to the US on Dec 1. Trump’s disdain for South Africa’s G20 priorities suggests the country is unlikely to throw its weight behind the Stiglitz findings.
Ramaphosa said last week it’s still not clear if Trump will attend the Johannesburg meeting. The US foreign minister explicitly said he wouldn’t attend a gathering in early 2025 after South Africa dedicated its turn in chairing the G20 to pursuing solidarity, equality and sustainability.
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