More than $70tn (£53tn) of inherited wealth is expected to pass between generations worldwide over the next decade, exacerbating inequality and underscoring the need for G20 intervention, according to a panel of economists and campaigners.
The report, published ahead of the G20 meetings in Johannesburg later this month, found that inequality is rising in more than eight in ten countries. It said 83% of all nations, representing 90% of the global population, meet the World Bank's definition of high inequality, and that such countries are seven times more likely to experience democratic decline than more equal ones.
Nobel laureate Joseph Stiglitz, who chaired the independent expert committee, said the main recommendation was for the G20 to establish a permanent panel to monitor inequality trends and evaluate policies. The report was commissioned by South African President Cyril Ramaphosa, who described it as a “blueprint for greater equality” supporting his country's G20 plan to place inequality on the international agenda.
New analysis in the report showed that between 2000 and 2024, the top 1% captured 41% of all new wealth, while the bottom 50% received just 1%. Research by Italian economist Salvatore Morelli indicated that up to $70tn would be inherited by 2035, with wealth inequalities gaining momentum as compound interest and limited inheritance taxes allow fortunes to be passed down, undermining social mobility and economic efficiency.
Stiglitz noted that widening gaps between rich and poor can erode democratic institutions and fuel populism. Campaigners expect several G20 countries, including Germany, to support the call for a monitoring panel before the ministerial meeting on 22 November.
