Extreme inequality is not a given; it is the result of deliberate political choices about taxation, labor markets, public investment, and the rules governing economies.
The crisis in numbers
According to a report by the G20 Extraordinary Committee of Independent Experts on Global Inequality, the richest 1% of people have captured 41% of all new wealth created since 2000. The poorest half of the global population received just 1% of that total. This disparity leaves billions of people unable to meet basic needs, with 2.3 billion individuals—roughly one in four—regularly skipping meals despite the vast wealth generated by the global economy.
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The report notes that the middle class has been hollowed out in many nations, leaving hard-working citizens unable to afford medication or home heating. This disconnect between economic growth and individual well-being has created widespread frustration. The committee argues that the system generates wealth for a select few while leaving the majority struggling to survive. As the chair of the committee noted, this phenomenon is not merely an unfortunate trade-off for performance, but a direct consequence of policy decisions that have reduced the power of labor vis-à-vis capital and allowed corporations to exploit loopholes.
A model for global oversight
To address this gap, the committee is formally proposing the creation of an International Panel on Inequality. Modeled after the Intergovernmental Panel on Climate Change, the panel would produce rigorous, periodic assessments of inequality’s scale and trajectory. Its work would focus on the drivers of inequality, its consequences, and the effectiveness of policies designed to combat it.
Proponents of the panel contend that current data is fragmented and lacks a unified framework. Without a shared consensus on how inequality evolves across countries and demographics, policymakers cannot make informed decisions. The panel aims to fill this void by providing the scientific evidence necessary for governments to design effective, targeted interventions. This rigorous tracking is key because different policies can have very different distributional consequences; for instance, a tax reform might reduce inequality in one area while increasing it in another, or a trade agreement might create aggregate gains while decreasing the real incomes of workers. Governments need to understand these complex trends before making decisions rather than decades after the fact.
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Political power and control
The report links economic inequality directly to the erosion of democratic institutions. Wealth concentration allows a small number of individuals to disproportionately influence political agendas, laws, and regulations. The panel notes that six ultra-wealthy people control nine of the world’s ten largest social media platforms. Combined with the fact that half of the global media industry is owned by billionaires, this concentration of ownership means the “town square” of the 21st century is not public space but private property.
When the media and the economy are both controlled by a small elite, the public’s ability to understand and challenge the status quo is severely compromised. This dynamic undermines the foundations of democratic governance, creating a feedback loop where economic power reinforces political control. A billionaire can purchase a superyacht or a private jet, but the more consequential purchase is the power to disproportionately influence decisions and shape political agendas, as corporations and wealthy elites wield outsized influence to shape laws, regulations, and monetary and fiscal policies in their favor.
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Building a roadmap
In 2024, the African Union (AU) set a decisive goal: reduce continental inequality by 15% over the next decade. The scale of the challenge is significant. Nearly half of the world’s 50 most unequal countries are in Africa, while just four men hold more wealth than half the continent’s population combined. Yet this target reflects a vital collective resolve to build a fairer, more prosperous future for all Africans. During the past year, our committee has been working closely with the governments of Brazil, South Africa, Spain and Norway to construct a concrete roadmap for an IPI, an initiative now drawing strong support from governments, international bodies, and the UN secretary-general.
In February, the African Union (AU) unanimously passed a motion supporting the IPI. The four founding governments will convene world leaders at the UN General Assembly later this month, to discuss the proposal for an IPI. African leaders and the AU have a key opportunity to help lead the global fight against extreme inequality by championing the rapid establishment of an IPI. We look forward to their support and that of Africa.
