Global Inequality Reaches “Unsustainable” Levels, New Report Warns

Global Inequality Reaches “Unsustainable” Levels, New Report Warns
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Fewer than 60,000 of the world’s richest people control three times more wealth than the poorest half of humanity, according to the World Inequality Report 2026. Compiled by 200 researchers, the study says global inequality has intensified to a point where immediate political action is needed to protect economic stability and social cohesion.

The report finds that the top 10% of income earners now receive more income than the remaining 90% combined, while the poorest half of the world population accounts for less than 10% of global earnings. Wealth inequality is even more severe, with the richest 10% holding 75% of global assets and the bottom half owning just 2%. In nearly all regions, the top 1% possesses more wealth than the bottom 90% together.

Researchers note that the fortunes of the ultra-rich have grown at extraordinary rates. Since the 1990s, the wealth of multimillionaires has increased by an average of 8% per year—almost double the growth rate of the bottom 50%. The share of global wealth controlled by the top 0.001% rose from about 4% in 1995 to over 6% today. The authors, including economist Thomas Piketty, argue that inequality has become so extreme that it threatens democratic stability and environmental sustainability.

The report highlights deep inequities in global opportunity, pointing to stark gaps in education spending. Children in Europe and North America benefit from investment levels more than 40 times greater than those in sub-Saharan Africa—disparities far larger than differences in GDP per capita. The authors estimate that a 3% annual tax on fewer than 100,000 of the world’s richest individuals could generate $750bn, equivalent to the education budgets of low- and middle-income countries.

Wealth inequality is also reinforced by structural imbalances in the global financial system, the report says. Rich countries borrow at lower interest rates while earning higher returns on foreign investments, enabling them to act as “financial rentiers.” As a result, roughly 1% of global GDP flows from poorer nations to wealthier ones each year—almost triple the volume of global development aid.

Gender disparities remain entrenched as well. Excluding unpaid labour, women earn only 61% of men’s hourly wages on average; when unpaid work is included, the figure drops to just 32%. The report also emphasises the role of capital ownership in climate inequality, finding that the wealthiest 10% are responsible for about 77% of carbon emissions linked to private investments, while the poorest half contributes just 3%.

The authors argue that inequality can be reduced through effective taxation, expanded public services and targeted redistribution. However, they say political obstacles—including fragmented electorates and the disproportionate influence of wealth—continue to hinder decisive action. “The tools exist,” the report concludes. “The challenge is political will.”