G20 releases a report on Global Inequality

Posted 06 Nov 2025

2 min read

Article Summary

The report highlights that most countries face high income inequality; the wealthy capture most new wealth, driven by neoliberal policies, monopoly growth, and global capital mobility, worsening social and environmental impacts.

Findings of the report:

Income: 83% of countries have high income inequality (i.e., a Gini coefficient above 0.4), accounting for 90% of the world’s population.
Wealth: Between 2000 and 2024, the richest 1% captured 41% of all new wealth, in contrast to just 1% being captured by the bottom 50%.
- In India, the top 1% has grown their share of wealth by 62% over this period.

Drivers of Inequality

Neoliberal Policies: Deregulation of financial and labor markets, the weakening of competition policies, and a shift toward less progressive taxation.
Growth of monopoly power: Increases corporate owners' incomes and decreases workers' real incomes.
International Setting: Greater mobility of capital across borders and new technologies used in production have lowered bargaining power of less-skilled workers.
Influence of economically powerful elites: on politics and policymaking both drives and reinforces economic inequality
Historical legacy of high inequality in developing countries. E.g. Distribution of land.

Recommendations

Establishing an International Panel on Inequality (IPI) to provide policy-relevant assessments on inequality trends, drivers and impact.
Implementing more progressive taxation through a global minimum tax on ultra-rich individuals.
Rewriting IP rules to include compulsory licenses/waivers for critical technologies, especially related to climate change and pandemics.
Ensuring universal access to high-quality essential services such as health, education, and social security.