South African President Cyril Ramaphosa has launched a groundbreaking G20 taskforce aimed at addressing global wealth inequality and its impact on growth, poverty, and multilateral cooperation. Chaired by Nobel laureate Joseph Stiglitz, the six-member panel will present its findings at the upcoming G20 summit in Johannesburg this November.
This initiative underscores South Africa’s dedication to highlighting issues affecting developing nations, particularly in Africa, such as rising debt, uneven growth, and widening inequality, during its G20 presidency.
President Ramaphosa emphasized the harmful effects of inequality, citing the unfair distribution of COVID-19 vaccines as a significant example. He noted that rising food and energy prices, debt, and trade wars are driving a growing gap between the rich and the rest of the world, creating a new oligarchy in the global economy.
Stiglitz echoed these concerns, stating that the task force aims to transform global frustration into actionable policy proposals. He emphasized that inequality is a choice, and G20 nations have the power to choose a different path on economic and social policies.
The launch of the task force coincides with renewed global attention on inequality, highlighted by the recent award of the Nobel Prize in Economics to Daron Acemoglu, Simon Johnson, and James A. Robinson. This recognition underscores the critical importance of addressing income disparities among and within nations.
According to the World Inequality Report, the richest 10% of the world’s population controlled 76% of global wealth in 2021, while the poorest half owned just 2%. While the income gap between the richest and poorest countries has narrowed, inequality within countries has nearly doubled over the past four decades.
Despite the significance of these discussions, the United States has decided not to participate in the upcoming G20 meetings hosted by South Africa. This decision reflects disagreements over South Africa’s domestic policies, particularly regarding land reform and racial issues.
President Trump and his allies have been critical of South Africa’s land expropriation law, which allows the government to seize land without compensation in certain cases. Additionally, the U.S. has reduced financial aid to South Africa, citing concerns over governance and foreign policy disagreements.
This development is likely to strain U.S.-South Africa relations further, potentially pushing Pretoria closer to China, Russia, and other BRICS nations. The growing alignment of South Africa with alternative global governance structures reflects a broader shift in global power dynamics, as nations in the Global South seek to counterbalance Western influence.
Other members of the task force include UNAIDS Executive Director Winnie Byanyima and development economist Jayati Ghosh. The United States is scheduled to assume the G20 presidency at the end of this year.
