Pretoria: President Cyril Ramaphosa has called on the Group of 20 (G20) to significantly and urgently reduce global inequality, emphasizing the need for decisive action to address this pressing issue. In his weekly newsletter, the President highlighted the threat that rising inequality poses to global stability, prosperity, and democracy.

According to South African Government News Agency, President Ramaphosa underscored the importance of equality as a cornerstone of South Africa’s G20 Presidency, alongside solidarity and sustainability. He noted that the wealth disparity remains stark, with the richest 10% holding over half of total global income and 74% of global wealth. This inequality consigns billions to poverty and undermines global stability and democracy.

President Ramaphosa appointed an Extraordinary Committee of Independent Experts on Global Inequality, chaired by Professor Joseph Stiglitz, to examine the causes and consequences of inequality. The committee’s report recommends creating a permanent international body on inequality, similar to the Intergovernmental Panel on Climate Change, to monitor and advise on inequality trends.

The report suggests measures such as progressive taxation, a national minimum wage, and subsidised healthcare, which South Africa has already implemented. It also identifies monopolies and anticompetitive practices as key drivers of inequality and stresses the need for debt sustainability, particularly in developing economies.

President Ramaphosa reiterated the call for reform of the global financial architecture, urging multilateral development banks to adopt an ‘inequality-reducing agenda’. The report proposes that countries develop National Inequality Reduction Plans with clear goals to address income and wealth disparities.

He emphasized the importance of the G20 considering the issue of global inequality for the first time, urging that the report’s recommendations be given attention in the lead-up to the Leaders’ Summit. The President expressed hope that the report would serve as a credible blueprint for overcoming one of the most pressing global challenges of our time.