President Cyril Ramaphosa has called on world leaders and governments to take deliberate collective action to address global inequality.
The President addressed the Global Inequality Dialogue in Johannesburg on Friday, the second meeting of the founding International Panel on Inequality (IPI), founded during South Africa’s Group Twenty (G20) Presidency.
“The decision to establish the Panel is one of the most consequential outcomes of the G20 Leaders’ Summit, held in Johannesburg, in November last year.
“This decision arose from an appreciation by leaders from across the world that inequality severely constrains social and economic development,” President Ramaphosa said.
Inequality stops progress
Inequality remains one of the most pressing global challenges, exacerbating poverty, social instability, democratic fragility, health inequities and climate vulnerability with particular impact in the Global South.
President Ramaphosa described the scourge as the “greatest threat to human progress”.
“It retards human development and progress because where inequality exists, opportunity is scarce. Where opportunity is scarce, potential is wasted. And where potential is wasted, progress is not just slowed – it is stopped.
“Inequality literally entrenches poverty across generations. It results in one’s starting point in life being a handicap and results in inferior schooling, nutrition, lack of networks that make upward mobility difficult or impossible. This prevents humanity’s progress,” he said.
Pointing to the findings of the Extraordinary Committee of Independent Experts on Global Inequality led by Professor Joseph Stiglitz during South Africa’s G20 Presidency, the President noted the consequences inequality has on all fronts.
“Drawing on extensive evidence and a broad range of views, the [Extraordinary Committee’s] report outlines in clear and precise terms the scale, drivers and consequences of rising inequality.
“It is astounding that between 2000 and 2024, the richest 1% of people in the world captured 41% of all new wealth. The poorer half of humanity captured just 1% of new wealth. The committee’s report provided evidence that inequality is a threat to democratic freedoms, to economic growth and to general well-being.
“It would be a mistake to think that inequality is bad only for the poor. Inequality threatens the stability of societies and the sustainability of economies. It worsens the effects of climate disasters and steadily makes the planet less inhabitable for all people. The Extraordinary Committee was correct when it said that the world is facing an inequality emergency,” he reflected.
Call for global action
President Ramaphosa highlighted that despite the challenge that inequality presents, the International Panel on Inequality represents a “concrete opportunity to confront this emergency”.
“It is an opportunity to bring together governments and peoples from different countries to help the world to understand and address inequality. No nation can overcome inequality alone. We need coordinated multilateral action, rooted in solidarity and shared responsibility.
“We need a collective architecture of reform, credible monitoring and actionable insights to guide governments, multilateral agencies, academia and civil society,” he said.
The President noted that at the 4th meeting of the ‘In Defence of Democracy’ initiative held in Barcelona last weekend, world leaders recognised that inequality is a serious challenge to democracies.
He added that the leaders welcomed “coordination with international initiatives addressing inequality and social cohesion, specifically mentioning the International Panel on Inequality”.
“The Panel will therefore begin its work amid a gathering groundswell of global activism for a more inclusive, equal and just world. It will provide the rigorous analysis and credible evidence that is needed to ensure that this sentiment is translated into actions that fundamentally and sustainably reduce inequality within and between countries.
“That is why the work of this Consultative Council is so important. All those gathered here, from South Africa and across the world, are expected to propose an agenda for the first wave of work of the International Panel on Inequality.
“The Consultative Council is expected to identify the critical areas for focus within four key themes taken from the original report: the scale and dimensions of inequality, drivers of inequality, consequences of inequality and finally policy options,” President Ramaphosa said.
He called on governments and all world leaders to “actively support the establishment of the Panel as a permanent international body”.
“Once established, once equipped and supported, this International Panel will be one of the most effective instruments the global community has to direct efforts to substantially reduce inequality.
“But we must recognise that the panel can only take us so far. As communities, as social formations, as governments and as multilateral institutions, it is up to us to take forward the struggle for more equal societies and for a just and inclusive global order.
“The International Panel on Inequality can provide the evidence we need. It can develop the analysis and make the policy recommendations. But it is up to all of us to act, to act together and to act with great urgency,” the President urged.
President Ramaphosa closed on a note of measured optimism.
“We establish this International Panel knowing that inequality is deepening.
“We do so out of grave concern for the quality of lives of billions of people and the prospects for meaningful human progress. Yet, although the challenges are great, we see a rising tide of activism and a renewed determination across the world to confront and overcome this crisis of inequality.
“As we undertake the important preparatory work to put this International Panel in place, we are full of hope and expectation. We are convinced that through our collective efforts we are firmly on the path towards a better, more just and more equal world,” the President concluded. – SAnews.gov.za
