G20 report on Global Inequality

Why in news?

G20 Extraordinary Committee of Independent Experts on Global Inequality study led by Nobel Prize-winning economist Professor Joseph Stiglitz shows that India's top 1% grew its wealth by 62% since 2000.

Key Findings

• As per the report, Global inequality has reached emergency levels, threatening democracy, economic stability, and climate action.
• Global trend – Between 2000 and 2024, the top 1% of the global population gained 41% of newly created wealth, while the bottom 50% received only 1%.
• Rising inequality – Between 2000 and 2023, the richest 1% increased their wealth share in over half of all countries, covering 74% of the global population.
  • In India, the top 1% has grown their wealth share by 62% over 2000-2023; for China it is 54%.
• Causes – Global shocks like COVID-19, the Ukraine war, and trade tensions have deepened poverty and inequality worldwide.
• Intercountry inequality – Because of the rise in per capita incomes in some very populous countries like China and India have reduced the dominance of high-income countries in global GDP.
• Risk for democracy – Countries with high inequality are 7 times more likely to experience democratic decline than more equal countries.
• Slow poverty reduction – Since 2020, global poverty reduction has stalled, with some regions seeing a reversal.
  • 2.3 billion people face moderate or severe food insecurity, up by 335 million since 2019.
  • Half the global population lacks essential health services & 1.3 billion are pushed into poverty due to out-of-pocket health expenses.
• Creation of International Panel on Inequality (IPI) – Modelled on the Intergovernmental Panel on Climate Change (IPCC), to monitor global trends and guide policymaking.

References

1. The Hindu | Report on Global Inequality
2. G20 South Africa | Report on Global Inequality