India’s wealthiest 1% have significantly increased their portion of wealth over the last twenty years, growing by 62% from 2000 to 2023, as per a recent report supported by the G20 and spearheaded by Nobel laureate Joseph Stiglitz. The study highlights that global inequality has now reached a critical point that poses a threat to democratic stability, economic robustness, and environmental collaboration.
The report, initiated by South Africa during its G20 term, reveals that the wealth accumulation of the past two decades has predominantly favored the affluent. Worldwide, the top 1% have seized 41% of all wealth generated since 2000, while the lower half of the population received merely 1%. The authors characterize this situation as a worldwide crisis.
A team of experts, including Jayati Ghosh, Winnie Byanyima, and Imraan Valodia, points out that although economic gaps between nations have somewhat diminished due to the growth of economies like India and China, inequality within most countries has widened. The report indicates that the richest 1% have increased their share of wealth in over half of all countries, encompassing nearly 74% of the global populace.
In India, the concentration of wealth among the top 1% has surged at a faster rate compared to China, where the increase stood at 54% during the same timeframe. The report asserts that extreme inequality is not an inevitable outcome but a result of political and policy decisions. To combat this issue, the panel has suggested the establishment of an International Panel on Inequality, akin to the IPCC for climate change, to monitor inequality trends and advise governments based on factual evidence rather than ideology.
The data also underscores the repercussions of neglecting this issue. Nations with high levels of inequality are seven times more likely to witness democratic decline. Progress in poverty alleviation has either stalled or regressed since 2020. The number of individuals facing food insecurity has risen to 2.3 billion, an increase of 335 million since before the pandemic. Additionally, approximately 1.3 billion people are being pushed into poverty due to medical expenses, underscoring the limitations of existing healthcare systems.
The report’s key takeaway is clear: the concentration of wealth among the elite is not only socially unfair but also structurally destabilizing. Addressing this requires intentional political interventions rather than solely relying on economic growth.