Leading Economists Urge Burnham to Join UN Global Inequality Initiative

Forty prominent academics are urging UK Prime Minister Andy Burnham's government to support the establishment of a new International Panel on Inequality (IPI), currently being developed at the United Nations (UN) to tackle global inequality. The experts, including Nobel laureate Joseph Stiglitz, University College London professor Mariana Mazzucato, and London School of Economics vice-chancellor Larry Kramer, made the call in an open letter to Burnham.

The academics envision the IPI, once established at the UN, providing an independent, trusted global evidence base on the causes and consequences of inequality, alongside analysis of policies that can reduce it. The IPI is designed to operate with an approach similar to that of the Intergovernmental Panel on Climate Change (IPCC) and is slated to be chaired by Stiglitz. Brazil, South Africa, Norway, and Spain have already been involved in its setup. Led by York University professor Kate Pickett, the academics urged Burnham to use his attendance at the UN General Assembly next month to signal the UK's strong support for the initiative. Burnham became Prime Minister in July, after serving nine years as Mayor of Greater Manchester, where he championed issues of inequality.

This call comes at a critical juncture for the UK's role on the global economic stage. The government's support for this initiative could have long-term implications for international aid, trade policies, and wealth distribution strategies. Stewart Wood, the Foreign Office Minister for Growth, stated that the government intends to work with allies to boost global growth, combat inequality, enhance the effectiveness of international financial institutions, and coordinate development support and climate action. The UK's upcoming G20 presidency in 2027 presents Burnham with an opportunity to demonstrate his leadership on the world stage.

Despite Burnham's domestic policy agenda, the "Makerfield test," which aims to address regional neglect and ensure fairness within the UK, the letter highlights that inequality is also a global issue, becoming more entrenched amidst geopolitical instability. Previously, under Keir Starmer's Labour government, aid spending was cut to increase the defense budget, leading to the resignation of the then-development minister. Foreign Secretary Ed Miliband has indicated his desire to make international development more central to Labour's priorities. Furthermore, the Burnham government faces domestic economic challenges, including weak living standards, deep regional divisions, and underinvestment, with strained public finances limiting stimulus.

The academics anticipate Burnham will signal strong support for the IPI at the upcoming UN General Assembly. The UK's G20 presidency in 2027 is viewed as a significant opportunity for the Prime Minister to lead on global development and economic change. The establishment of the IPI could lead to new global policy recommendations aimed at reducing wealth disparities, potentially influencing future international economic frameworks. The government's stated willingness to engage on global economic issues suggests potential for collaborative international efforts to address inequality.