Ramaphosa Urges G20 to Prioritize Global Inequality as Core Economic Issue

“We chose to focus on equality because it is essential to a more stable, prosperous and sustainable world,” the President stated.

In a powerful message to the international community, South African President Cyril Ramaphosa has called on world leaders to treat inequality as a central issue in global economic governance, asserting that the Group of 20 (G20) must act decisively if it is to remain credible and relevant in addressing the world’s most urgent economic and financial challenges.

Writing in his weekly newsletter to the nation, President Ramaphosa warned that rising inequality threatens global stability, prosperity, and democracy, and must be addressed with the same urgency as climate change or economic crises.

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G20 Presidency Anchored on Equality, Solidarity, and Sustainability

As South Africa nears the conclusion of its G20 Presidency, which it assumed nearly a year ago, President Ramaphosa reflected on the country’s chosen pillars of leadership: equality, solidarity, and sustainability.

“We chose to focus on equality because it is essential to a more stable, prosperous and sustainable world,” the President stated.

Ramaphosa emphasized that global inequality is not only morally indefensible but economically detrimental. According to the President, the richest 10% of the global population earn over half of all income and hold 74% of global wealth, while one in four people worldwide continues to face moderate or severe food insecurity.

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The Human Cost of Inequality and Its Global Implications

President Ramaphosa described these disparities as “unjust”, warning that inequality undermines democratic institutions, fuels conflict, and hampers inclusive growth. He pointed out that inequality also stifles innovation, depresses consumer demand, and deepens the divides both between and within countries.

“Inequality is bad for everyone. It makes the world less stable; fuels conflict and undermines democracy,” he asserted.

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Expert Committee on Global Inequality Presents Landmark Report

In a pioneering move under South Africa’s G20 stewardship, President Ramaphosa appointed an Extraordinary Committee of Independent Experts on Global Inequality, chaired by Nobel Laureate and economist Professor Joseph Stiglitz. The committee has since presented a comprehensive report analyzing the causes and consequences of inequality and offering concrete policy recommendations.

Key among these is the proposal to establish a permanent international body dedicated to inequality—an International Panel on Inequality—modelled after the Intergovernmental Panel on Climate Change (IPCC). This body would monitor global inequality trends, conduct in-depth research, and advise governments and multilateral institutions on policy interventions.

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A Blueprint for Reducing Inequality Globally

The report goes beyond diagnostics to suggest a blueprint for global action. Its recommendations include:

• Creation of National Inequality Reduction Plans, with time-bound targets for reducing income and wealth disparities

• Tackling monopolies and anti-competitive business practices that concentrate wealth and suppress competition

• Promoting debt sustainability, particularly in the Global South, where sovereign debt servicing costs are crowding out vital public spending

• Reforming global financial institutions to include an “inequality-reducing agenda,” urging multilateral development banks to consider equality as a key performance metric

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South Africa’s Progress and Domestic Alignment

President Ramaphosa highlighted that South Africa has already taken substantial steps aligned with the report’s recommendations:

• Implementation of a progressive taxation system

• Introduction of a national minimum wage

• Subsidised public healthcare

• Zero-rating of essential food items

• A robust and evolving social protection system

These measures, he said, are part of South Africa’s commitment to building a more inclusive society and can serve as models for other nations grappling with similar issues.

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Debt Relief and Financial Architecture Reform

Another prominent theme in the report, echoed by Ramaphosa, is the urgent need to address debt burdens in developing nations. He criticized the rising interest obligations on sovereign debt, particularly in Africa, which he said are stifling public investment and economic growth.

“It is widening the gap between countries and within countries,” Ramaphosa cautioned.

He renewed South Africa’s longstanding call for a comprehensive reform of the global financial architecture, including the governance of the International Monetary Fund (IMF) and World Bank, to make them more representative and focused on equality-enhancing development.

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Elevating Inequality to the G20 Agenda

President Ramaphosa acknowledged that while many of the recommendations are not entirely new, this is the first time the G20 will consider them in a coordinated, comprehensive manner. He expressed hope that the issue will receive prominent attention at the G20 Leaders’ Summit later this month, and encouraged governments, civil society, and media to engage deeply with the report’s findings.

“Inequality is one of the most pressing global issues of our time. This report provides a credible blueprint for the actions we need to take to overcome it,” he said.

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Toward a More Equal and Just World Order

In conclusion, President Ramaphosa stressed that unless governments act urgently and decisively, the widening chasm of inequality could erode the very foundations of global cooperation, democracy, and economic stability.

As South Africa’s G20 Presidency enters its final phase, Ramaphosa’s advocacy places equality at the heart of international policy debate, reminding the world that economic justice is indispensable to peace and prosperity.