2 Summit meetings - saint petersburg and brisbane
– V.Srinivas IAS –
– G 20 A Decade in Multilateralism – Part 6 –
The 5th anniversary vision statement released on the eve of the Saint Petersburg Summit 2013 reaffirmed the G20 as the premier forum for international economic cooperation. In retrospect, the G20 had faced a truly global crisis and found a truly global solution. In Washington, London and Pittsburgh summits it had taken decisive steps to stimulate the world economy, restore growth, recapitalize financial institutions, launch an ambitious program to reform financial sector, maintain open markets and clam-down on tax havens. The G20 established the Financial Stability Board, tripled resources available to IMF, and put in place a Framework for Strong, Sustainable and Balanced Growth. These steps averted a global depression. In Toronto, Seoul, Cannes and Los Cabos Summits, the G20 focused on fiscal sustainability, promoting growth and job creation, structural reforms, development and inclusive green growth.
Theagenda for the Saint Petersburg Summit of the Leaders of G20 covered a diverse range of issues. The financial issues discussed were Financial Regulation, International Financial Architecture, Financial Inclusion, Financial Education, Consumer Protection, Tackling Tax Avoidance, Promoting Tax Transparency and Automatic Exchange of Information. The developmental issues deliberated included Growth through Quality Jobs, Promoting Development for All, Sustainable Energy Policy & Resilience in Commodity Market and Intensifying the Fight Against Corruption.
The G20’s coordinated action had done much to stabilize the world economy and the financial system. Yet there was much to be done to get the world economy work better. Global growth remained subdued, with persisting market volatility and stability risks. While the advanced economies were gathering some momentum, the emerging markets were showing a slowdown. The Saint Petersburg Action Plan stressed the importance of cooperation as countries addressed the challenges of promoting global growth, jobs and financial stability. The action plan recognized the need for fiscal consolidation to reflect economic conditions, the need to push forward on financial oversight and regulation, and the importance of comprehensive structural reforms to support growth.
The Saint Petersburg Action Plan recognized the need for supportive monetary policy and the need to ensure an orderly exit from the unconventional monetary policies, effectively managing spillovers. The G20 made progress on tax evasion and tax avoidance and recognized that international taxation was an important area of multilateral discussions. The G20 also continued support for IMF’s 2010 quota reform and the urgent need to ratify the agreement.
Brisbane Summit November 2014
The Brisbane Summit meeting of the Leaders of G20 accorded highest priority to deliver better living standards and quality jobs for people across the world. Global recovery was slow and not delivering the jobs needed. There was a shortfall in demand and risks persisted in financial markets. The G20 set itself an ambitious goal to lift the G20’s GDP by atleast an additional 2.1 percent which will add US $ 2 trillion to the global economy and create millions of jobs.
To promote infrastructure investment, the G20 endorsed a Global Infrastructure Initiative, a multi-year work program to lift public and private sector investment. Multilateral Development Banks were asked to provide additional lending to for infrastructure in low-income countries. The G20 agreed to create a Global Infrastructure Hub with a 4-year mandate to develop a knowledge sharing platform and network between governments and private sector, development institutions and other international organizations. The G20’s actions to deliver quality jobs were to increase investment, trade and competition. For generating quality jobs, the G20 set up an Employment Working Group to submit its report by 2015.
The G20 had delivered on strengthening the resilience of the global economy and stability of the financial system. The Financial Stability Board proposed that systemically important banks hold additional loss absorbing capacity to protect taxpayers if the banks fail which was accepted by the G20. The G20 made further progress in the areas of international taxation. They further reiterated that the IMF Quota and Governance reforms and the 15th General Review of Quotas agreed in 2010 remains the G20’s highest priority and urged the United States to ratify them.
The G20 agreed on several developmental issues with special emphasis on climate change. They agreed to support mobilizing finance for the Green Climate Fund. They also sought to have a coordinated approach for Ebola. An Anti Corruption Plan to support growth and resilience was endorsed, including enhanced mutual legal assistance, recovery of proceeds of corruption and denial of safe havens to corrupt officials.
The road from Brisbane in 2014led toAnatalya, Turkey in 2015 and then to Hangzhou in 2016.
G 20 A decade in multilateralism
G20- A decade in multilateralism - A lecture by V.Srinivas IAS
V.Srinivas is an IAS officer of 1989 batch, currently posted as Chairman Board of Revenue for Rajasthan and Chairman Rajasthan Tax Board.
He has served as Advisor to Executive Director (India) in the IMF, Private Secretary to Finance Minister & External Affairs Minister Government of India and Planning & Finance Secretary Rajasthan.
Disclaimer : The views expressed by the author in this feature are entirely his own and do not necessarily reflect the views of INVC NEWS.