Income inequality is a global crisis that threatens democracy and social cohesion, a panel of economists and academics warned today, calling on G20 leaders to consider this crisis in terms similar to the climate crisis.
The "crisis of inequality" is exacerbating hunger for billions of human beings and may be made worse by policies, especially trade, of the administration of US President Donald Trump, says the report, published today and led by Nobel laureate in economics Joseph Stiglitz.
"One in four of the world's inhabitants now skips regular meals," while the wealth of billionaires has collectively reached a level without any comparison in history," says the text, commissioned by the South African presidency of the G20, an organization that brings together the world's largest economies and will meet on November 22 and 23 in Johannesburg.
Income inequality remains huge worldwide, although it has decreased since 2000, mainly due to China's economic growth, the six authors of the text point out.
"Between 2000 and 2024, the world's richest 1% accumulated 41% of all new wealth, while just 1% (of new wealth) went to the poorest 50%," the report notes.
"Over the next 30 years, 1,000 billionaires will pass on more than $5.2 trillion to their heirs, much of it tax-free, perpetuating inequality from one generation to the next," the text added.
"This is not just unfair and undermines social cohesion; it is a problem for the economy and politics," Joseph Stiglitz said in a press release accompanying the report.
US President Trump's policy, in particular the imposition of additional tariffs, raises the risk of further deepening inequalities on a global scale, the report underlines.
The report, commissioned by President Cyril Ramaphosa, whose country is the most unequal in the world according to World Bank calculations, links economic inequalities to "the erosion of democracy and the rise of authoritarianism".
Mr. Stiglitz and five other experts propose in principle to create an international commission on inequalities to understand all mechanisms, such as tax evasion or tax avoidance techniques for example. These analyzes would allow appropriate policies to be drawn up.
South Africa is the first African country to chair the G20, an organization that includes 19 countries, the African Union and the European Union, and which represents 85% of global GDP and two-thirds of the world's population.
"Inequalities are a betrayal of the dignity of populations, an obstacle to inclusive development and a threat to democracy itself," comments President Ramaphosa, who wants to make this issue his battle tank at the G20 summit.
