ISLAMABAD: A high-level international committee, led by Nobel Laureate Joseph Stiglitz, has called for the establishment of a Global Inequality Panel — a permanent body designed to monitor and combat the rapid concentration of wealth and political power in the hands of the world’s richest elite.
The proposal, unveiled under South Africa’s G20 presidency, envisions a panel similar in structure to the Intergovernmental Panel on Climate Change (IPCC), bringing together global experts, economists, and policymakers to coordinate action against widening economic disparities. The move comes amid growing concern that unchecked inequality is eroding democracy, fuelling social unrest, and undermining global stability.
According to the committee’s report, the top 1% of the world’s population captured 41% of all new wealth created since 2000, while the bottom half of humanity gained an average of just US $585 in the same period. Alarmingly, more than 80% of countries now fall into the “high-inequality” category — representing nearly 90% of the global population. Experts warn that these nations are seven times more likely to experience democratic backsliding compared to more equal societies.
The panel’s findings highlight how extreme wealth concentration translates into political dominance, allowing the ultra-rich to shape tax laws, policy priorities, and economic systems to their benefit. It cautions that inequality is no longer just a financial issue but a global governance crisis that weakens state institutions and deepens social divides.
Key recommendations include enforcing a minimum global corporate tax to prevent multinationals from exploiting tax havens, reforming intellectual property and financial systems, expanding IMF Special Drawing Rights, and providing debt relief to developing nations. At the national level, the panel advocates progressive taxation, stronger labor protections, and greater investment in public services to promote inclusive growth.
The report also links the rise in inequality to recent global shocks — including the COVID-19 pandemic, Russia-Ukraine war, and economic volatility caused by climate and trade disruptions — all of which disproportionately affected lower-income populations while accelerating wealth gains among billionaires.
Observers note that if implemented, the proposed global panel could mark a historic turning point in international economic policy, ushering in coordinated efforts to rein in elite power and restore balance to an increasingly divided world economy.
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