<p>The world is facing unprecedented levels of inequality, according to a study conducted by a G20 panel of independent experts headed by Nobel Prize-winning economist Joseph Stiglitz and comprising Indian economist Jayati Ghosh, UNAIDS chief Winnie Byanyima, and others. The richest 1% captured two-fifths of all new wealth created in the world between 2000 and 2024, while the bottom half had 1%. India has fared worse, with the richest 1% increasing their wealth by 62% between 2000 and 2023. While the country’s economy has grown faster than the world’s, its economic inequality has outpaced the growth of global inequality. The result is the rich holding a substantially larger share of the fruits of growth and development – not a promising sign for the Viksit Bharat envisioned in 2047.</p>.<p>If inequality increases at the current pace, it can undermine growth and development because no society can sustain itself with such a striking economic imbalance. Inequality creates economic and social conflict and political divisions, reduces the role of the poor in society, and their participation in political and social processes. The marginalisation of the majority poses a threat to democracy. It is natural for the rich minority to try to maintain dominance through undemocratic means. Countries with high inequality levels are much more likely to experience a decline in democracy in democracy than the less-impacted ones. The weakening of democratic forces and the rise of authoritarianism in the world in recent years can even be seen as a consequence of the growing rich-poor gap. One of the postulates in economics is that resources are scarce. Their distribution should be fair and reasonably equitable to keep the society stable and just.</p>.<p>The report says that extreme inequality is “a choice, not a necessity” and that it can be minimised through political action and global cooperation. It suggests the creation of a new body, an international panel on inequality, on the lines of the Intergovernmental Panel on Climate Change (IPCC), to deal with the problem. The panel could equip governments with reliable data by tracking inequality and poverty trends across the world, enabling them to frame policies and initiate action towards mitigation. “The world understands that we have a climate emergency; it’s time we recognise that we face an inequality emergency too,” the report said. As a country where inequality is very high and which has the largest number of poor people in the world, India can ignore the signs only at its peril.</p>
<p>The world is facing unprecedented levels of inequality, according to a study conducted by a G20 panel of independent experts headed by Nobel Prize-winning economist Joseph Stiglitz and comprising Indian economist Jayati Ghosh, UNAIDS chief Winnie Byanyima, and others. The richest 1% captured two-fifths of all new wealth created in the world between 2000 and 2024, while the bottom half had 1%. India has fared worse, with the richest 1% increasing their wealth by 62% between 2000 and 2023. While the country’s economy has grown faster than the world’s, its economic inequality has outpaced the growth of global inequality. The result is the rich holding a substantially larger share of the fruits of growth and development – not a promising sign for the Viksit Bharat envisioned in 2047.</p>.<p>If inequality increases at the current pace, it can undermine growth and development because no society can sustain itself with such a striking economic imbalance. Inequality creates economic and social conflict and political divisions, reduces the role of the poor in society, and their participation in political and social processes. The marginalisation of the majority poses a threat to democracy. It is natural for the rich minority to try to maintain dominance through undemocratic means. Countries with high inequality levels are much more likely to experience a decline in democracy in democracy than the less-impacted ones. The weakening of democratic forces and the rise of authoritarianism in the world in recent years can even be seen as a consequence of the growing rich-poor gap. One of the postulates in economics is that resources are scarce. Their distribution should be fair and reasonably equitable to keep the society stable and just.</p>.<p>The report says that extreme inequality is “a choice, not a necessity” and that it can be minimised through political action and global cooperation. It suggests the creation of a new body, an international panel on inequality, on the lines of the Intergovernmental Panel on Climate Change (IPCC), to deal with the problem. The panel could equip governments with reliable data by tracking inequality and poverty trends across the world, enabling them to frame policies and initiate action towards mitigation. “The world understands that we have a climate emergency; it’s time we recognise that we face an inequality emergency too,” the report said. As a country where inequality is very high and which has the largest number of poor people in the world, India can ignore the signs only at its peril.</p>
