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India’s richest 1% grew their wealth by 62% between 2000 and 2023, in response to a report commissioned by South Africa’s G20 Presidency.
The examine, led by Nobel laureate Joseph Stiglitz, warns that world inequality has reached “emergency” ranges, threatening democracy, financial stability and progress on local weather change.
The G20 Advert Hoc Committee of Unbiased Consultants on World Inequality, together with economists Jayati Ghosh, Winnie Byanyima and Imran Varodia, discovered that the highest 1% captured 41% of the brand new wealth created globally between 2000 and 2024, whereas the underside half of humanity acquired simply 1%.
The report stated that broadly measured inequality between international locations seems to have declined, as per capita revenue has elevated in some populous international locations equivalent to China and India, and the share of high-income international locations in world GDP has fallen barely.
The report discovered that between 2000 and 2023, the richest 1% elevated their share of wealth in additional than half of all international locations, representing 74% of the world.
“In India, the highest 1% elevated their share of wealth by 62% over this era (2000-2023). This determine is 54% in China,” the report stated.
“Excessive inequality is a selection. It isn’t inevitable and may be reversed with political will. This may be drastically facilitated by world cooperation, and the G20 has an vital function to play on this regard,” the report stated.
Proposal for a panel to watch inequality
The report proposes the creation of an Worldwide Panel on Inequality (IPI), modeled on the Intergovernmental Panel on Local weather Change (IPCC), to watch world tendencies and information coverage selections.
The physique can be launched underneath South Africa’s G20 Presidency and can present governments with “authoritative and accessible” knowledge on inequality and its drivers.
Based on the report, international locations with excessive inequality are seven instances extra more likely to expertise democratic decline than extra equal international locations.
“Since 2020, world poverty discount has slowed to a close to standstill, even reversing in some areas. 2.3 billion folks face reasonable or extreme meals insecurity, a rise of 335 million from 201926, half of the world’s inhabitants nonetheless lacks important well being companies, and 1.3 billion dwell in poverty because of out-of-pocket well being prices,” the report stated.
