CAPE TOWN, South Africa (AP) — On Thursday, South Africa announced that a report on global wealth inequality has been commissioned in preparation for the upcoming Group of 20 (G20) summit, which the country will host in November 2023. This initiative aligns with South Africa's role as the rotating president of the G20, a significant forum consisting of 19 nations, along with the European Union and African Union.
To lead this important project, South Africa has appointed Nobel Prize-winning economist Joseph Stiglitz. He will head a team of six experts tasked with compiling the report that will be presented to world leaders at the summit. The focus of the report reflects South Africa’s commitment to addressing economic disparities and promoting the interests of poorer nations during its G20 presidency.
Recent data from the Kenya-based nonprofit organization Oxfam revealed troubling trends in global wealth distribution. According to their report published in June 2023, the wealth of the world’s richest 1% has increased by a staggering $33.9 trillion since 2015. This amount is substantial enough to eradicate global poverty on an annual basis 22 times over. Conversely, Oxfam reported that nearly half of the world's population, approximately 3.7 billion people, continue to live in poverty.
In addition to wealth concentration, Oxfam highlighted that wealthy governments have been making considerable cuts to development aid for impoverished countries, a trend noted as the largest since records began in 1960. This alarming decrease in aid, combined with the rising inequality, has placed global development goals in a precarious position, prompting Oxfam to characterize the status as “abysmally off track.”
South Africa itself faces significant challenges in terms of inequality and is ranked among the most unequal countries globally. The South African government has indicated its intention to prioritize the issues affecting poorer nations throughout its tenure as G20 president, advocating for policies that aim to improve economic conditions for those most in need.
Despite the significance of the G20 summit, U.S. President Donald Trump has signaled that he is likely to skip the event. This decision appears to stem from a perceived deterioration in diplomatic relations between the United States and South Africa, which he has publicly addressed.
As the G20 summit approaches, discussions around wealth inequality and aid to developing nations will be critical themes, with the report led by Joseph Stiglitz expected to play a vital role in shaping these conversations.
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The Associated Press
