'Inequality crisis' threatens democracy, experts warn G20

Wealth inequality is a global emergency that threatens democracy and social cohesion, experts warned on Tuesday, urging the Group of 20 (G20) leaders meeting in South Africa this month to establish a panel to tackle the crisis.

The proposed panel on inequality was inspired by the UN's expert Intergovernmental Panel on Climate Change that analyzes the risks and impact of global warming and proposes solutions.

"One in four people worldwide now regularly skip meals, whilst billionaire wealth has now hit the highest level in history," said a report which was released by a committee led by Nobel Prize winning economist Joseph Stiglitz. The report was commissioned for the Johannesburg G20 summit.

Between 2000 and 2024, one percent of the world's population captured 41 percent of all new wealth, of which just one percent went to the poorest 50 percent, the report said.

"The world understands that we have a climate emergency; it's time we recognize that we face an inequality emergency too," Stiglitz said in a statement.

"It isn't just unfair and undermining societal cohesion. It's a problem for our economy and our politics too," Stiglitz said.

The report added that economic inequality undermined democracy. "Inequality erodes trust in institutions, fuels political polarization, can reduce participation among poorer citizens and residents, and creates social tensions of different kinds," it said.

More than 80 percent of countries experienced "high inequality," based on the World Bank definition, and these nations were seven times more likely to experience democratic decline.

The six-person committee said the proposed International Panel on Inequality would analyze all aspects of inequality – from land ownership to tax avoidance – and inform policymaking.

South Africa is the first African nation to hold the presidency of the G20 grouping of 19 countries, alongside the African Union and the European Union.

Together they represent 85 percent of global GDP, 75 percent of international trade and two-thirds of the world's population.

US President Donald Trump has indicated that he would not attend the November 22-23 summit.

South African President Cyril Ramaphosa said the report was "a blueprint for greater equality," which South Africa wanted to put on the international agenda through its G20 presidency.

"Addressing inequality is our inescapable generational challenge. This report lays out prudent and pragmatic steps we can take to reduce it," Ramaphosa said in a statement.

(With input from AFP)

(Cover: The G20 Johannesburg Summit logo is seen displayed on a smartphone screen with a South African flag in the background. /VCG)