Ramaphosa Calls for Urgent Action on Inequality as New Global Panel Gains Momentum

President Cyril Ramaphosa has issued a strong call for coordinated global action to confront rising inequality, warning that the growing divide between rich and poor is now the “greatest threat to human progress” and a direct risk to economic stability, democracy, and social cohesion worldwide.

Speaking at the Global Inequality Dialogue in Johannesburg on Friday, the President addressed the second meeting of the founding International Panel on Inequality (IPI)—a landmark initiative established during South Africa’s G20 Presidency to drive global policy responses to inequality.

A Defining Outcome of South Africa’s G20 Presidency

Ramaphosa described the creation of the International Panel on Inequality as one of the most significant outcomes of the G20 Leaders’ Summit held in Johannesburg in November 2025. The decision, he said, reflects a growing global consensus that inequality is no longer a peripheral issue but a central barrier to sustainable development.

“The decision arose from an appreciation by leaders from across the world that inequality severely constrains social and economic development,” the President noted.

The panel is expected to serve as a permanent global body, bringing together governments, academia, multilateral institutions, and civil society to generate evidence-based solutions and policy frameworks.

Global Wealth Gap Reaches Alarming Levels

Highlighting stark global disparities, Ramaphosa cited findings from the Extraordinary Committee of Independent Experts on Global Inequality, led by Nobel laureate Professor Joseph Stiglitz.

Between 2000 and 2024, the richest 1% of the global population captured 41% of all new wealth, while the poorest half accounted for just 1%—a statistic the President described as “astounding” and deeply concerning.

He warned that inequality entrenches poverty across generations, limiting access to quality education, nutrition, and economic opportunities, and effectively locking millions out of upward mobility.

“Inequality literally entrenches poverty across generations… where opportunity is scarce, potential is wasted—and where potential is wasted, progress is stopped,” he said.

Beyond Poverty: A Threat to Democracy and Stability

The President stressed that inequality is not only a moral or developmental issue but a systemic threat affecting all nations—rich and poor alike.

According to the report referenced, inequality undermines democratic institutions, slows economic growth, exacerbates health disparities, and intensifies climate vulnerability, particularly in the Global South.

“It would be a mistake to think that inequality is bad only for the poor. It threatens the stability of societies and the sustainability of economies,” Ramaphosa warned.

He added that global leaders have increasingly recognised inequality as a critical challenge to democratic resilience, citing discussions from the recent “In Defence of Democracy” initiative in Barcelona.

A New Global Architecture for Reform

Central to the President’s message was the need for a coordinated multilateral response. He called for the development of a “collective architecture of reform” that includes credible monitoring systems, policy guidance, and actionable insights to address inequality at scale.

“No nation can overcome inequality alone. We need coordinated multilateral action rooted in solidarity and shared responsibility,” he said.

The International Panel on Inequality is expected to focus its work across four key pillars:

• The scale and dimensions of inequality

• The underlying drivers

• The social and economic consequences

• Policy solutions and reform pathways

The panel’s Consultative Council has been tasked with defining the initial agenda, setting priorities that will shape global inequality policy for years to come.

From Evidence to Action

While emphasizing the importance of the panel’s analytical role, Ramaphosa cautioned that research alone will not solve the crisis.

“The Panel can provide the evidence and recommendations—but it is up to all of us to act, to act together and with urgency,” he said.

He urged governments worldwide to actively support the institutionalisation of the panel as a permanent body capable of driving sustained global action.

A Moment of Crisis—and Opportunity

Despite the scale of the challenge, the President struck a cautiously optimistic tone, pointing to a growing global movement advocating for a more just and inclusive economic order.

“With rising activism and renewed determination across the world, we are firmly on the path towards a better, more equal future,” he concluded.

As inequality continues to widen globally, the establishment of the International Panel on Inequality marks a critical step toward aligning international efforts—offering a platform for evidence-based policymaking at a time when the need for decisive action has never been greater.