G20 Global Inequality Report 2025: Insights on Overcoming Disparities
The first-ever report on inequality to the G20 was presented on November 4, 2025, by the Extraordinary Committee of Independent Experts on Global Inequality, which was chaired by Professor Joseph Stiglitz, an economist who won the Nobel Prize.
Leading economists and specialists on inequality around the world were consulted for the research, which was commissioned by President Cyril Ramaphosa for South Africa’s G20 Presidency.
A sobering but useful overview of the patterns in global inequality, their root causes, and the urgent need for systemic change is given in the report. As over 90% of the world’s population lives in countries with significant economic disparities, the study emphasises that inequality is a policy choice rather than a natural by-product of growth.
A World Divided: The State of Global Inequality
The report begins with a grim assessment of global conditions. According to the Extraordinary Committee of Independent Experts on Global Inequality Report, 83% of the countries have a Gini coefficient more than 0.4 as of 2025, which is considered an indication of severe economic inequality. Approximately 90% of people on the planet live in situations where there is a large income gap, according to this data. Although global income inequality has somewhat decreased since 2000, primarily due to China’s rapid economic growth, the overall Gini index remains dangerously high at 0.61.
The narrative of wealth inequality, however, is a much greater concern. Between 2000 and 2024, 41% of newly created wealth went to the top 1% of the global population, while only 1% went to the bottom half. This concentration of wealth may have a substantial impact on democratic governance, social cohesion, and economic stability.
The Human Cost: Food Insecurity and Social Exclusion
One of the most evident consequences of inequality is food insecurity. According to the report, 2.3 billion people, or about one-third of the world’s population, experience food insecurity. Since 2019, this figure has risen by 335 million. This increase is caused by a variety of factors, such as the COVID-19 pandemic, geopolitical events such as the conflict in Ukraine, and climate-related disruptions. Cycles of poverty and exclusion are made worse by the disproportionate weight placed on marginalised communities.
Root Causes: Policy Choices and Structural Forces
According to the Report, inequality is primarily the result of deliberate policy decisions, dispelling the myth that it is an inevitable by-product of economic expansion. Urbanisation, technological development, and globalisation are a few examples of structural forces that have contributed, but their influence has grown as a result of choices that put capital before labour.
The Key drivers include:
- Deregulation and market concentration have given businesses the ability to stifle wages and gain power.
- Weakening of labour laws, which results in unstable work and stagnating earnings/stagnant income.
- Tax policy shifts, with many countries moving away from progressive taxation toward regressive systems like value-added taxes (VAT).
- Privatisation of public services has reduced access to essential goods like education and healthcare for low-income populations.
These trends have exacerbated the wealth gap between the rich and the poor, while also undermining the middle class, a cornerstone of democratic countries/nations.
The Ripple Effects: Economic, Political, and Global Risks
Inequality has far-reaching effects that go well beyond personal suffering. In terms of the economy, it reduces innovation, hampers productivity, and increases financial instability. The economy misses out on potential growth when sizable portions of the population cannot afford to invest in entrepreneurship, health care, or education.
There are far-reaching consequences of inequality that extend far beyond individual hardship. It hurts the economy by decreasing innovation, impeding productivity, and raising financial instability. The economy loses out on potential growth when large segments of the population cannot afford to invest in education, health care, or entrepreneurship.
Politically, democratic institutions are undermined by inequality. According to the Report “Across the world, large corporations and rich elites wield influence and sometimes even determine laws, regulations and monetary and fiscal policies in ways that favour them. This has been reflected in a series of economic policies that have been implemented in most countries of the world over the last three decades ….”
The report issues a warning that these processes jeopardise governmental legitimacy and the stability of international relations.
Inequality exacerbates existential threats like pandemics and climate change on a global scale. Because they are more vulnerable to environmental degradation and have less access to healthcare, poor people/communities are disproportionately affected by global crises. This poses not only moral but also practical hazards to global collaboration and resilience.
A Path Forward: The International Panel on Inequality (IPI)
Perhaps the most ambitious recommendation in the report is the creation of an International Panel on Inequality (IPI), which would be modelled after the Intergovernmental Panel on Climate Change (IPCC).
The IPI would be trusted with monitoring changes in inequality, evaluating the impact of policies, and providing governments and multilateral organisations with authoritative guidance as a technical, independent organisation.
Key features of the IPI would include:
- Global inclusivity, ensuring representation from diverse geographical regions and perspectives.
- Interdisciplinary expertise, drawing from economics, sociology, public health, and environmental science.
- Policy relevance, with a focus on actionable recommendations tailored to national contexts.
- Transparency and independence, to maintain credibility and avoid political interference.
The IPI would be run by working groups and a small secretariat, maintain a centralised data repository, and produce reports regularly. Its goal would be to make inequality as pressing and well-coordinated on a worldwide scale as climate change.
India and World Wealth Concentration
The richest 1% in India have seen a 62% increase in their wealth between 200-2023, compared to 54% in China. There have been notable increases in the United States in the years following 1980, with the wealthiest 1% now owning 50% more of the nation’s wealth overall, says the report.
It is therefore not surprising that there are now over 3,000 US dollar billionaires worldwide, a significant increase from the 2.5% of the world’s GDP in 1990. Their wealth currently amounts to 14.1% of the world’s GDP. In less than ten years, the world can anticipate its first trillionaire based on present patterns. This pattern stands in stark contrast to the rise in food insecurity worldwide following 2019.
Our Time’s Defined Challenge
The G20 Global Inequality Report 2025 is both a diagnostic tool and a transformative plan. This perspective questions the assumption that inequality is simply a necessary consequence of advancement, suggesting instead that it’s something policies can influence.
The report outlines a vision for a more inclusive, resilient, and equitable world through the proposal of the IPI and the detailing of concrete reform measures.
The report quoted Abraham Lincoln’s famous statement, “A house divided against itself cannot stand.” While stating that today’s world is a house divided against itself.
During South Africa’s G20 leadership, the discussion should shift from the possibility of addressing inequality to the presence of the necessary political determination, says the report.
The report also quoted Nelson Mandela’s famous statement from 2003, “We proved the confident prophets of doom wrong. We were expected to destroy one another and ourselves collectively in the worst racial conflagration. Instead we as a people chose the path of negotiation, compromise and peaceful settlement”, while taking it as an inspiration.
According to Joseph Stiglitz, inequality is not solely an economic problem, but also a moral and political one.
The key proposals of the Reports are – the creation of an International Panel on Inequality, which would enhance our understanding of inequality in all its dimensions, assessing magnitudes and trends, its drivers and consequences, and the impacts of ongoing structural changes and policies.
Conclusion/My Perspective
The suggestions/actions provided in the report are both morally and economically sound as well as right. It is a known fact that reducing inequality can boost aggregate demand, foster innovation, and improve social stability. The implications of this matter are substantial and critical. Yet, there is also a scope and potential for transformative change.
