A G20 taskforce established by South African President Cyril Ramaphosa has called for the creation of an international panel to tackle inequality, warning that extreme wealth disparities disrupt democracy and cause economic instability.

"The world understands that we have a climate emergency; it's time we recognise that we face an inequality emergency too," said Joseph Stiglitz, who heads the Extraordinary Committee of Independent Experts on Global Inequality.

The committee's report - commissioned as part of South Africa's G20 presidency - found that the richest 1% of the global population captured 41% of new wealth since the year 2000.

By contrast, the poorest 50% increased their wealth by only 1%, according to data from the World Inequality Lab. 

"It isn't just unfair and undermining societal cohesion – it's a problem for our economy and our politics too," added Stiglitz, a Nobel prize-winning economist.

The taskforce said in a statement that a new panel on inequality should be modelled after the Intergovernmental Panel on Climate Change (IPCC). It would be responsible for monitoring the causes and impacts of inequality, and providing insights to governments and policymakers.

Its report also warned that 83% of all countries, accounting for 90% of the world's population, meet the World Bank's definition of inequality and that countries with high inequality are more likely to experience democratic decline.

The authors cited a "perfect storm" of global shocks such as Covid-19, the war in Ukraine and trade disputes, for worsening poverty and inequality. They noted that one in four people in the world regularly skip meals and that billionaire wealth has hit the highest level in history.

The inequality taskforce was a first for the G20 and is expected to present its findings to G20 leaders convening in Johannesburg in November.

The United States is set to take over the rotating G20 presidency at the end of this year.