Nobel Laureate James Robinson warns that rising wealth inequality endangers liberal democracies, urging urgent reforms at the Bengaluru Nobel Dialogue.
TheInterviewTimes.com | Bengaluru | November4, 2025 — Nobel Prize-winning economist James Robinson has issued a stark warning about the dangers of wealth inequality to the foundations of liberal democracies. Speaking at the Nobel Prize Dialogue held at the Indian Institute of Science (IISc), Bengaluru, Robinson emphasized that the concentration of global wealth in the hands of a few threatens equality, opportunity, and democratic governance — the very pillars of liberal society.
According to Robinson, an alarming 1.6% of the world’s population now owns 50% of the global wealth, a statistic that encapsulates the growing crisis of wealth inequality. The event, themed “The Future We Want,” brought together global thought leaders, scientists, and policymakers to explore how science and governance can address these widening divides.
Wealth Inequality and the Crisis of Liberal Institutions
Robinson, who received the 2024 Nobel Prize in Economic Sciences for his work on political and economic institutions, described wealth inequality as the “crisis of the liberal model of prosperity and progress.” He argued that rising disparities in income and ownership are destabilizing democracies worldwide, fueling populism, resentment, and distrust in public institutions.
Tracing liberal thought back to the 18th-century Scottish Enlightenment, Robinson referred to the “one-way street theory” proposed by Adam Smith and Adam Ferguson. This idea suggested that societies progress by imitating the institutional models of Western democracies. However, Robinson noted that such a theory now appears outdated in a world where wealth inequality is growing even within those same liberal states.
“Wealth concentration just seems to be monotonically increasing,” Robinson warned. “It is leading to an economic crisis. This isn’t what’s supposed to happen in societies where everyone has equal rights and opportunities.”
Can Liberal Democracy Reinvent Itself Amid Wealth Inequality?
Despite his somber tone, Robinson offered cautious optimism about liberalism’s capacity for reinvention. He pointed out that after the Great Depression and World War II, liberal democracies managed to rebuild stronger welfare systems and inclusive institutions. The same adaptability, he argued, could help societies overcome the current wealth inequality crisis if governments commit to fair taxation, innovation, and inclusive growth.
“There is lots of scope for reinvention,” Robinson said, urging collaboration between policymakers, entrepreneurs, and academics to bridge the economic divide.
Science and Innovation as Tools Against Inequality
The dialogue also featured other Nobel laureates who explored how science and innovation can mitigate social and economic divides. Nobel Chemistry laureate David MacMillan presented organocatalysis as a sustainable technology that could revolutionize global industries and reduce environmental damage. “We’re one catalytic reaction away from solving climate change,” MacMillan said, adding that India’s growing confidence in science marks a defining moment for the nation’s future.
Microbiologist Gagandeep Kang, a senior director at the Bill & Melinda Gates Foundation, discussed breakthrough medical technologies like non-invasive breath tests for tuberculosis and malaria, and predictive ECGs that can forecast heart attack risks years in advance. Such innovations, she argued, could dramatically narrow global health disparities — a crucial dimension of addressing wealth inequality.
Meanwhile, urban epidemiologist Tolullah Oni from the University of Cambridge linked urban planning to health outcomes. She emphasized that pollution and poor urban design are silently fueling diseases like asthma and heart attacks. “Urban planners often overlook how environmental inequality worsens public health,” Oni noted.
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Building a Fairer Future Beyond Wealth Inequality
The Bengaluru dialogue, organized by Nobel Prize Outreach in collaboration with Tata Trusts, concluded with cultural performances by maestro Dr. L. Subramaniam and vocalist Kavita Krishnamurti, symbolizing the unity of science, society, and art.
A follow-up session focusing on philanthropy, science, and institution-building is scheduled for November 5 in Mumbai. It aims to explore how sustained investment in knowledge and innovation can help curb wealth inequality and build a more equitable future.
In essence, the Nobel Prize Dialogue 2025 highlighted an urgent truth: wealth inequality is not just an economic issue but a moral and political one — testing whether modern societies can uphold liberty and fairness in an age of unprecedented concentration of power and resources.