Pretoria says the issue is a major systemic threat to economic, social, and political progress worldwide

South Africa's G20 Presidency announced the launch of an "Extraordinary Committee of Independent Experts" tasked with delivering the inaugural comprehensive report on global wealth and income inequality to G20 leaders.

Commissioned directly by President Cyril Ramaphosa and chaired by Nobel laureate economist Professor Joseph Stiglitz, this initiative seeks to place the pervasive issue of inequality firmly on the agenda of the world's largest economic forum.

The launch comes amid mounting concerns over accelerating disparities in global wealth and income, which experts warn threaten economic stability, social cohesion, and political progress.

"Recent analysis shows that the world's richest 1% have increased their wealth by more than US$33.9 trillion in real terms since 2015 - enough to eliminate annual global poverty 22 times over," said Vincent Mangwenya, spokesperson for President Ramaphosa, in a statement released on Thursday.

Magwenya argued that the world economy is grappling with a "perfect storm" of shocks - trade patterns, international finance, critical minerals shortages, sovereign debt crises, and skewed tax systems - that intensify uncertainties for policymakers, businesses, and consumers alike.

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"Inequality of this scale poses a serious systemic risk to global economic, social, and political progress," Mangwenya added.

The Extraordinary Committee comprises six renowned experts representing various geographies and disciplines.

Stiglitz (USA) is a Nobel Prize-winning economist, Columbia University professor, and Roosevelt Institute chief economist. Dr Adriana E Abdenur (Brazil) is a Social scientist and former Special Advisor on International Affairs to President Lula, co-founder of Brazilian think tank Plataforma CIPO. Winnie Byanyima (Uganda) is the Executive Director of UNAIDS, a UN Under-Secretary-General, and co-founder of the People's Medicines Alliance.

Other members include Professor Jayati Ghosh (India) who is a Professor at University of Massachusetts Amherst and Co-Chair of the International Commission for the Reform of International Corporate Taxation, Professor Imraan Valodia (South Africa) is also Pro Vice-Chancellor at University of the Witwatersrand and Director of the Southern Centre for Inequality Studies and Dr Wanga Zembe-Mkabile (South Africa), a Senior Specialist Scientist at South African Medical Research Council and Extraordinary Professor at UWC School of Public Health.

Among other responsibilities, they are charged with analysing the current landscape of global inequality, assessing its impacts on growth, poverty, and multilateralism. The committee will produce policy recommendations tailored for G20 leaders, offering a menu of transformative solutions.

Speaking on the occasion, President Cyril Ramaphosa emphasised the urgency and moral imperative behind the initiative.

"People worldwide know how extreme inequality undermines their dignity and chance for a better future. They saw the brutal unfairness of vaccine apartheid, where millions in the Global South were denied vaccines to save lives.

"They witness the impacts of rising food and energy prices, debt burdens, and trade wars-all driving this widening gap between the rich and the rest."

He added, "A new oligarchy in our global economy is becoming apparent. South Africa's G20 Presidency is proud to launch an initiative that targets this unprecedented challenge - a first for the G20 - and offers a practical way forward.

"Hosting this eminent group under the leadership of Professor Stiglitz, we aim to bring evidence-based, actionable solutions to the world's most influential leaders."

Professor Stiglitz stressed the profound political and social risks posed by rising inequality.

"Inequality has widened to extremes threatening democracy itself. It is a choice, and G20 nations can choose a different path through economic and social policies.

"I thank President Ramaphosa for prioritising inequality on the G20 agenda. Our task is translating scholarly evidence and public outrage into sound, transformative recommendations for G20 leaders."

Professor Ghosh echoed the urgency of confronting inequality with new ideas. "Policymakers worldwide seek evidence-based strategies to reduce inequality and challenge orthodox economic thinking. The worsening global context, marked by economic shocks, weaponised tariffs, shrinking aid, uncertain investments, and climate change, has enriched the few and heightened insecurity for the majority. Our work to reverse this trend has never been more critical," he said.

The G20 Extraordinary Committee of Independent Experts on Global Wealth Inequality is a special project operating under South Africa's Department of International Relations and Cooperation (DIRCO) as part of the G20 Sherpa's Office. Its report will be the first official, detailed examination of global inequality commissioned by the G20 since its founding.

The G20 group includes 19 major economies - Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, the Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Türkiye, the United Kingdom, and the United States - plus the European Union and African Union regional bodies.

First published by IOL

(RT.com)