JOHANNESBURG – G20 leaders were confronted with calls to address an “inequality emergency” this week as statistics revealed that billionaires in G20 countries increased their wealth by $2.2-trillion in just one year.
That surge, says Oxfam, is more than enough to lift 3.8 billion people above the global poverty line.
The NGO -- which fights inequality by providing humanitarian aid, development programmes, and advocacy for policies that support the poor and marginalised -- released the data ahead of the G20 Leaders’ Summit in Johannesburg from 22 to 23 November.
It shows that the fortunes of G20 billionaires rose by 16.5 percent over the past year, from $13.4-trillion to $15.6-trillion.
South Africa, which holds the G20 Presidency under the theme Solidarity, Equality and Sustainability, has commissioned the first-ever G20 analysis of global inequality.
Led by Nobel laureate Professor Joseph Stiglitz, the Extraordinary Committee of Independent Experts has warned that the richest one percent have captured 41 cents of every new dollar created since 2000, while the bottom half of humanity received “just a single cent”.
READ | Ramaphosa receives the Report of the G20 Extraordinary Committee on Global Inequality
The committee’s findings state that extreme wealth concentration is fuelling economic hardship, political division and the erosion of democratic systems worldwide. The experts recommend the creation of a new International Panel on Inequality, a global scientific body that would mirror the Intergovernmental Panel on Climate Change (IPCC)’s role in driving action on climate change.
President Cyril Ramaphosa has expressed support for the proposal.
Oxfam International Executive Director Amitabh Behar urged G20 governments to match South Africa’s ambition.
“Inequality rips away life opportunities and rights from the majority of citizens, sparking poverty, hunger, resentment, distrust and instability. If the South African G20 establishes a new International Panel on Inequality it will be a tremendous step in addressing the inequality emergency. We urge all G20 nations and others to get behind South Africa and make it happen.”
Oxfam is also calling for the G20 to recommit to effective taxation of the super-rich after last year’s Brazilian G20 agreement. Only eight cents of every tax dollar collected in G20 countries comes from wealth, while many low-income countries are in or at high risk of debt distress. “These countries may not have defaulted on their debt, but they are defaulting on development. A world that cannot help countries invest in health, education and sustainability cannot expect stability, prosperity or climate progress,” added Behar.
With Johannesburg set to host global leaders this weekend, Oxfam and its partners will run a series of high-profile events, briefings and media engagements. These include:
- G20 Social Summit (18 November): A high-level dialogue on taxation and inequality takes place at the Birchwood Hotel, featuring Professor Jayati Ghosh and experts from IEJ, Global Policy Forum, Oxfam International and COSATU.
- People’s Summit (20 November): Hosted at Constitution Hill, the day includes:
Medupi – The Rose of Marapong film screening and panel on extractive-sector inequality and feminist climate justice.
Tax Wars – The Fight for Tax Justice screening, facilitated by Dan Corder with Prof Ghosh as discussant.
A two-day Sustainable Futures visual exhibition showcasing community-led climate and livelihood solutions.
A Patriotic Millionaires cocktail reception, focusing on progressive taxation. - Oxfam Big-Head Stunts (21 and 22 November): Held at Soweto Towers:
21 November: “Make Your Choice” tug-of-war against inequality.
22 November: “Pass the Ball at G20”, with President Luiz Inácio Lula da Silva, president of Brazil, symbolically passing a giant ball marked “Tax the Super Rich” to President Ramaphosa.
With global inequality taking centre stage and South Africa pushing for historic reforms, the pressure is now on G20 leaders to turn warnings into action.