South Africa announced on Thursday the formation of a high-profile panel led by Nobel Prize-winning economist Joseph Stiglitz to develop solutions for tackling global inequality and poverty, a move that could reignite international debates over taxing the wealthy.
The six-member expert team will analyze the impact of wealth and income disparities worldwide and present practical policy recommendations to world leaders ahead of South Africa’s hosting of the G20 summit in November.
“People across the world know how extreme inequality undermines their dignity and chance for a better future,” President Cyril Ramaphosa said during the announcement, citing the uneven global vaccine distribution during the COVID-19 pandemic as a prime example of systemic inequality.
Staggering wealth concentration
The initiative comes as new data reveals the extent of global wealth concentration. According to a June analysis by anti-poverty organization Oxfam, the world’s richest one percent has accumulated nearly $34 trillion in new wealth over the past decade — an amount sufficient to end global poverty 22 times over annually.
Ramaphosa warned that rising debt burdens, energy price volatility, and trade conflicts are worsening these disparities. “A new oligarchy in our global economy is becoming apparent,” the South African president said.
Tax reform challenges
The announcement revives discussions around controversial proposals for minimum global income taxes, which have faced significant resistance from major economies, particularly the United States, which will assume the G20 presidency after South Africa.
While nearly 140 countries endorsed a 15-percent global minimum tax on multinational corporations in a 2021 deal brokered by the Organisation for Economic Co-operation and Development (OECD), the agreement’s implementation remains uncertain. Notably, U.S. multinational companies are currently exempt from these provisions.
G20 finance ministers indicated in July that they aim to develop “a balanced and practical solution” on taxation issues before the leaders’ summit convenes.
About the G20
The Group of 20 comprises 19 nations plus two regional organisations, collectively representing more than 80 percent of global economic output. South Africa’s rotating presidency provides the country with a platform to advance its inequality agenda on the world stage.
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