Rethinking Global Justice: Informal Workers Left Behind in New Economic Proposals

The newly released Global Justice Report, spearheaded by economists Thomas Piketty and Lucas Chancel, presents ambitious proposals for reducing global inequality, but experts warn it may overlook the realities faced by the two billion informal workers worldwide.

Key Proposals in the Global Justice Report

Unveiled in June 2026, the report advocates for the establishment of a Global Justice Fund, funded by higher taxes on the wealthiest 1% of the global population. The initial revenues from this fund would be directed into a World Sovereign Fund, which aims to provide equal per-capita dividends to countries, supporting crucial sectors such as health, education, and infrastructure.

Challenges Faced by Informal Workers

Despite its commendable goals, the report's approach to labor markets in the Global South raises concerns. A significant portion of the workforce—over 60% globally—is employed informally, often lacking the protections and income stability that formal jobs provide. The report's assumption that productivity gains can lead to reduced working hours without impacting incomes does not apply to many informal workers, who rely on the hours they work to earn a living.

For instance, proposals to reduce working hours could threaten the earnings of informal workers like street vendors and small farmers, who do not have guaranteed wages or contracts. The report does not adequately address the unique challenges of this demographic, leading to skepticism about the feasibility of its recommendations.

The Need for Comprehensive Solutions

As experts point out, simply redistributing wealth through taxation is not enough. Effective solutions must also address the underlying structures and relationships that shape informal work. This includes improving access to resources, creating regulatory frameworks that support fair working conditions, and ensuring that workers can claim their fair share of the value they generate.

The Global Justice Report is a significant step towards addressing inequality, but without a nuanced understanding of informal employment, its proposals may not resonate with the realities of millions of workers around the globe.

Source: www.dailymaverick.co.za