President Cyril Ramaphosa has announced plans to push for the creation of a global institution dedicated to tackling inequality when he opens the G20 Leaders’ Summit later this month. His remarks came after receiving a report compiled by an expert panel led by Nobel laureate Professor Joseph Stiglitz, who praised South Africa for putting inequality at the top of the global agenda.
Ramaphosa emphasised that inequality is not just an economic problem but a fundamental threat to dignity, democracy, and inclusive growth. He said the report from the expert panel provides a clear blueprint for putting the issue of inequality at the centre of international cooperation and policy. According to Ramaphosa, global inequality has reached a point where it must be addressed collectively, not only by national governments but through coordinated global action.
The South African leader stated that when he delivers his address at the G20 Summit, he will call on member countries to support the establishment of an international panel on inequality. This institution would monitor inequality trends, advise governments, and coordinate research — similar to the Intergovernmental Panel on Climate Change (IPCC), which oversees global climate policy and data.
Ramaphosa described inequality as a “betrayal of people’s dignity” and warned that it poses a serious threat to social cohesion and democracy. “It correctly asserts that inequality is, in the end, a betrayal of people’s dignity, an impediment to inclusive growth, and a threat to democracy itself,” he said.
Ramaphosa Links Inequality to Historical Injustice
Professor Joseph Stiglitz, who chaired the panel, noted that global inequality is a matter of political and economic choices rather than an inevitable outcome of development. He explained that while technological advancement and globalization have created enormous wealth, much of it has been concentrated in the hands of a few.
Stiglitz said inequality affects every aspect of people’s lives, from access to education and healthcare to participation in the digital economy. “A lot of the wealth at the top is the result of monopoly, power, and exploitation. The issue has gotten clearer and clearer. Now it stares you in the face and you can’t not notice,” he remarked.
According to the report, the world’s top 1% captured 41% of all new wealth created between 2000 and 2024, while the bottom 50% received just 1%. Around 83% of countries, representing nearly 90% of the world’s population, now meet the World Bank’s threshold for “high inequality.” Stiglitz and his team argue that this growing gap is not sustainable and calls for urgent global reform.
Ramaphosa drew attention to the fact that South Africa and Namibia rank among the most unequal societies in the world. He pointed out that much of this inequality stems from the lasting effects of colonialism and apartheid, which entrenched economic exclusion and limited access to opportunities for the majority of citizens.
He welcomed the expert panel’s findings, saying they offer a “practical foundation” for reshaping global policies that perpetuate inequality. Ramaphosa stressed that inequality cannot be separated from history and that tackling it requires both structural reform and inclusive economic growth. “The report provides a clear way forward for building fairer societies and economies that serve all our people,” he said.
By placing inequality at the centre of the G20 agenda, Ramaphosa is challenging global leaders to confront one of the most pressing issues of the 21st century. His proposal marks a shift in the global economic conversation — reframing inequality not as a local or moral problem, but as a systemic risk to stability, growth, and democracy.
The proposed International Panel on Inequality would collect data, guide policy, and hold countries accountable for progress. Such an initiative could pave the way for new global frameworks on tax justice, trade reform, corporate accountability, and investment in public services such as health, education, and housing.
Ramaphosa’s leadership signals that South Africa intends to play a key role in shaping a more just global economic order. His stance has drawn international praise, with observers noting that this initiative could mirror the success of global climate cooperation — but focused on social and economic fairness.
Looking ahead to the G20 Summit, Ramaphosa reaffirmed his belief that inequality is not inevitable. With the right mix of policies and collaboration, he said, nations can close the gap between rich and poor and create a more balanced world economy.
“We have the resources to narrow the gap between and within countries,” Ramaphosa said. “Now, with this report, we have clear actions that we can take as governments, as societies, and as the global community.”
In framing inequality as a generational challenge, Ramaphosa positions South Africa as a global leader calling for bold reform rather than incremental change. As the world prepares for the G20 Summit, the question remains: will other nations join Ramaphosa in transforming this vision of equality into concrete global action?
Source- EWN
