Source: TH
Context:
India’s richest 1% expanded its wealth by 62% between 2000 to 2023, according to a report commissioned by the South African Presidency of the G20.
Key Findings
Extreme Wealth Concentration:
- Top 1% globally captured 41% of all new wealth created between 2000 and 2024.
- Bottom 50% of humanity received only 1% of new wealth.
- Global inequality has reached “emergency levels”, threatening:
- Democracy
- Economic stability
- Climate progress
Country-Specific Trends:
- In India, the richest 1% expanded their wealth by 62% between 2000–2023.
- In China, the top 1% saw a 54% increase in wealth share during the same period.
- Globally, more than half of all countries (representing 74% of the world population) saw rising wealth concentration among the richest 1%.
Intercountry Inequality:
- Appears to have slightly reduced due to rising incomes in populous countries like China and India.
- This has decreased the share of high-income countries in global GDP.
Social and Economic Impacts:
- Countries with high inequality are seven times more likely to experience democratic decline.
- Global poverty reduction has slowed since 2020; in some regions, it has reversed.
- Food insecurity: 2.3 billion people face moderate or severe food insecurity (up 335 million since 2019).
- Health coverage: Half the world’s population lacks essential health services; 1.3 billion impoverished due to out-of-pocket health spending.
Policy Recommendations
Reversing Extreme Inequality:
- Inequality is not inevitable; it can be mitigated with political will.
- Global coordination is crucial, and the G20 has a critical role.
Proposed International Panel on Inequality (IPI):
- Modeled on the IPCC (Intergovernmental Panel on Climate Change).
- Purpose: Monitor global inequality trends and provide authoritative, accessible data to guide policymaking.
- To be launched under the South African G20 Presidency.
Approach:
- Aim to make the poor richer without making the rich poorer through equitable policies.
- Data-driven interventions to reduce economic, social, and political risks arising from extreme inequality.
India Context:
- India’s millionaire population grew by 6% in 2024.
- The number of billionaires in India reached 191.
- High concentration of wealth highlights the need for inclusive growth strategies alongside global financial governance.
