As South Africa hosts the G20 summit in Jo’burg this weekend, the first on African soil, questions are being asked by many South Africans as to how their lives would change for the better, as they regard the summit as just another ‘talk shop.’ This follows a G20 report led by Nobel Laureate Joseph Stiglitz sounding the alarm on ‘inequality emergency’ and calling for an International Panel on ‘Inequality.’
An ‘Extraordinary Committee’ of independent experts, appointed by President Ramaphosa launched the G20’s first-ever report on global inequality. A new analysis published in the report shows that between 2000 and 2024, the world’s top 1% captured 41% of all new wealth, while just 1% went to the bottom 50%, amid growing concerns about democratic capture associated with wealth concentration. The committee chaired by Prof Stiglitz (USA) was joined by five other leading global experts, namely; Dr Adriana E. Abdenur (Brazil); Ms Winnie Byanyima (Uganda);
Professor Jayati Ghosh (India); Professor Imraan Valodia (Wits, South Africa) and Dr Wanga Zembe-Mkabile (SAMRC, UWC, South Africa).
The Committee’s report comes amid heightening concern about ‘the global increase in incomes and wealth at the upper end of the scale. The latest data on the state of inequality, revealed: 83% of all countries, accounting for 90% of the world’s population, meet the World Bank’s definition of high inequality. Countries with high inequality are seven times more likely to experience democratic decline than more equal countries. The increase in inherited wealth shows $70 trillion of wealth is expected to be handed down to heirs over the coming ten years, a major challenge to social mobility, fairness and equality of opportunity.
A number of recommendations have been made by the Committee including reforming international economic rules – redesigning intellectual property rules (especially relating to pandemics and climate change), rewriting tax rules to ensure fair taxation of multinationals and the ultra-wealthy (noting the UN Tax Convention). On a National level it has called for exploring the roles of pro-worker regulation, reducing corporate concentration, taxing large capital gains, investing in public services, and more progressive tax and expenditure policies.