G20 Summit | Inclusive growth to reduce global inequality: Prof Isaac Khambule

The article is a transcript of an interview discussing the G20 summit's declaration on addressing global inequality, unemployment, underemployment, and wealth gaps that threaten economic and social stability. Leaders call for urgent measures to promote inclusive growth and equal opportunities across nations. Professor Isaac Kamule from the University of Johannesburg analyzes key aspects, emphasizing industrialization's role in poverty alleviation, as demonstrated by successes in China, the US, and East Asian countries like South Korea and Singapore. For South Africa, industrialization is vital but conflicted by the global push for a 'just transition' away from fossil fuels, risking de-industrialization and exacerbating youth unemployment; he urges South Africa to resist and leverage its resources. On investment, Kamule critiques how just transition funding often benefits the global north (e.g., European consultants from Germany), leading to debt traps without genuine development. He highlights failed projects like the Gumaguma plant, which caused job losses, and stresses the need for Africa to manufacture its own green energy equipment to avoid dependency. The discussion touches on developing nations' heavy debt burdens and the cost of capital. Regarding employment, the declaration advocates robust labor institutions and fair wages, but globalization has weakened organized labor's power, with capital favoring deregulation for exploitation. South Africa's strict labor laws deter investment, creating tensions between productivity and equity. Kamule views the G20 principles on sustainable industrial policy as a non-binding political statement, challenging to implement given widening inequality over the past 30 years, worsened by COVID-19, where the rich grew richer. He criticizes the G20 for potentially maintaining the status quo, marginalizing the global south despite including the African Union. Overall, South Africa's hosting of the first G20 on African soil is deemed a success with impressive infrastructure, akin to the 2010 World Cup, but raises questions about sustaining such development momentum beyond events, posing a challenge to leadership.