A MUST READ

Ahead of the G20 Summit in Johannesburg this month, a new report on global inequality has been released by a task team assembled by President Cyril Ramaphosa several months ago. The task team is chaired by left-leaning Nobel laureate Professor Joseph Stiglitz of Columbia University, a long-standing critic of wealth inequality. His appointment was no surprise given Ramaphosa’s ideological leanings.

Earlier this year, I argued that the theme of this year’s G20 Summit—“Solidarity, Equality, and Sustainability”—is misguided. I stand by that view. The summit is being used to advance a redistributive agenda rooted in left-wing orthodoxy.

In my view, the summit should have focused squarely on poverty. That is the real and urgent challenge confronting the world. Stiglitz’s task team ought to have examined global poverty trends and proposed actionable solutions. The fixation on inequality reflects political posturing rather than a genuine concern for economic well-being.

A few months ago, Professor Larry Summers of Harvard University stated on Bloomberg TV that inequality does not suppress economic growth. He was right. There is no credible evidence showing that inequality impoverishes societies. On the contrary, prosperity often requires inequality—some individuals must succeed so they can uplift others. Success breeds opportunity.

When discussing South Africa’s inequality, we must be honest. Inequality has existed for centuries; it did not begin with apartheid. In fact, it predates it. Historical disparities in material and technological advancement enabled colonial conquest. South African blacks and whites have never been equal in material terms—and pretending otherwise distorts our understanding of history.

We are obsessing over issues we cannot control, while ignoring those we can. Leaders like Ramaphosa and Stiglitz have manufactured crises that distract from the real problems.

According to Africa Check, South Africa’s poverty rate stands at 55.5% . The drivers are clear: unemployment, lack of education, and broken families. This is what the G20 should have focused on. This is what Stiglitz’s report should have tackled. Instead, the inequality narrative is being used to stoke resentment and perpetuate grievances. It’s a political stunt.

Predictably, the report recommends an international panel to monitor global inequality and calls for tax reforms to increase levies on the wealthy. It concludes that inequality threatens democracy—a claim that is political, not empirical. Are we surprised by Stiglitz? I’m not.

The report’s statistic dominating headlines is that between 2000 and 2024, the richest 1% captured 41% of all new wealth. It reads like an annual Oxfam pre-Davos talking point. Highlighting this figure serves no purpose other than to provoke emotion and fuel polarization. The wealth of the top 1% was accumulated legally. Where illegality exists, it should be prosecuted—but legality should not be vilified.

I know President Trump hates this report. His administration rejects the inequality dogmas and considers such reports to be vehicles for diversity, equity, and inclusion (DEI) initiatives and left-leaning activism. They have also expressed clear discontent with this year’s G20 Summit theme. Due to this theme and other political tensions that have strained US–South Africa relations, the United States has decided not to attend the G20 Summit in Johannesburg.

In a post on Truth Social last week, President Trump stated: “It is a total disgrace that the G20 will be held in South Africa. Afrikaners (People who are descended from Dutch settlers, and also French and German immigrants) are being killed and slaughtered, and their land and farms are being illegally confiscated. No U.S. Government Official will attend as long as these Human Rights abuses continue. I look forward to hosting the 2026 G20 in Miami, Florida!”

The socioeconomic challenges we face will take time to resolve. But progress is possible—if we focus on what matters. With sound policy and common sense, we can make meaningful strides against poverty. Strong economic growth, driven by productive private sectors, will uplift millions.

Our mission must be to empower the disadvantaged. They live in dysfunctional states under corrupt regimes. We must develop ideas to address their plight.

The wealthiest 1% are not villains—they are assets to humanity. They inspire, invest, and often give back. Philanthropists like Bill Gates have contributed significantly to improving lives globally.

President Ramaphosa missed a vital opportunity with this G20 Summit. Once again, I am disappointed.

Phumlani M. Majozi is executive director of African Markets Institute and author of Lessons from Past Heroes. He’s host of The Phumlani Majozi Show on Public Policy on YouTube.

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