More than 1,500 economists and academics from over 100 countries have called on world leaders to join a coordinated effort to address extreme inequality, describing it as a “policy choice that can be reversed.” The appeal was made through an open letter supporting the newly established International Panel on Inequality (IPI), ahead of the United Nations General Assembly scheduled to begin next week in New York.
The panel, endorsed by countries including Spain, South Africa, Brazil, and Norway, and promoted by UN Secretary-General António Guterres, is modeled after the Intergovernmental Panel on Climate Change. Its goal is to provide comprehensive assessments and policy recommendations focused on global inequality. Nobel laureate Joseph Stiglitz will chair the IPI, with the intention of it becoming the foremost global authority on economic disparities.
In the letter, the signatories emphasized the consequences of rising inequality, stating that the concentration of income and wealth undermines democratic governance, erodes societal trust, and intensifies political polarization. Stiglitz underscored the widespread impact of inequality, noting its political, economic, social, and environmental repercussions across the world.
The IPI aims to consolidate expertise from academics, governments, and international organizations to produce regular reports and elevate the urgency of addressing inequality worldwide. The initiative will focus on disparities within and between countries, shedding light on how they affect global development and stability.
Jayati Ghosh, economics professor at the University of Massachusetts Amherst, highlighted India as an example of a fast-growing economy with significant inequality: “One of the world’s fastest-growing economies is also one of its most unequal, with extraordinary wealth alongside severe deprivation.” This observation underscores the need for a shared scientific approach to measuring and combating inequality at the international level.
Recent statements by the World Bank have been pessimistic about progress in narrowing global inequalities during the 2020s, warning that many developing nations, excluding China and India, may face a “lost decade” for economic advancement.
Support for the IPI also comes from former global leaders such as Germany’s Olaf Scholz, Ireland’s Leo Varadkar, and New Zealand’s Helen Clark. While the UK government has not officially committed to joining the panel, Foreign Secretary Ed Miliband expressed openness to international collaboration on shared challenges, despite resistance from former U.S. President Donald Trump toward multilateral initiatives.
Ahead of the UN meetings, UK Prime Minister Andy Burnham is expected to make a significant appearance on the international stage and may hold a bilateral meeting with Trump on the sidelines.
UK Foreign Office Minister Stewart Wood emphasized the importance of global partnerships in achieving a fairer and more productive economy, stating that domestic economic reforms must be accompanied by international cooperation.
The UK government recently reiterated its commitment to restore foreign aid spending to 0.7% of gross national income, a pledge made in the Labour Party’s 2024 manifesto. However, this promise has faced challenges as aid budgets were reduced to fund increased defense expenditures under current leadership.