As Johannesburg readies to host the upcoming G20 Summit, President Cyril Ramaphosa has renewed his call for world leaders to address global inequality.
In his weekly newsletter, Ramaphosa highlighted that the stark divide in global wealth fuels instability, drives conflict, and undermines democracy.
He said that for the G20 Summit to fulfil its mission of addressing global economic and financial challenges, reducing inequality must be a priority.
G20 TO TACKLE GLOBAL CHALLENGES
Pointing to the imbalance in wealth distribution, Ramaphosa noted that the world’s richest 10 per cent earn more than half of total global income.
“These people account for a staggering 74 per cent of total global wealth. The human cost of these inequalities is severe; one in four people globally face moderate or severe food insecurity. These huge disparities are unjust and consign billions of people to poverty. Inequality is bad for everyone,” said Ramaphosa.
INEQUALITY REPORT
His remarks follow the work of an Extraordinary Committee of Independent Experts on Global Inequality, chaired by Nobel Laureate and economist Joseph Stiglitz. The committee submitted its report, examining the roots and impacts of inequality and offering recommendations to tackle global challenges.
The report boldly identifies market concentration, monopolies, and anticompetitive business practices as major drivers of inequality.
According to Ramaphosa, South Africa is the first G20 host to make inequality a central theme and to commission a report on it. He added that South Africa already has several policies addressing inequality, including progressive taxation, minimum wage laws, free or subsidised healthcare, zero-rating essential food items, and robust social protection systems.
The G20 consists of 19 countries that are considered as some of the world’s largest economies, accounting for 85% of global gross domestic product (GDP), over 75% of international trade, and about two-thirds of the world’s population. The United States is among its members, though President Donald Trump will not attend the summit in South Africa. Despite this, Ramaphosa’s message remains clear, tackling inequality is not just a national issue, but a shared global responsibility.
