Decoding G-20 summit : Turkey 2015 ......
The
Group of Twenty or G-20 is a group of twenty largest economies of the world. It
was established in 1999 in the wake of financial crisis of late 1997 and in
response to the growing recognition that the key-emerging market countries were
not adequately included in the process of global economic discussion and
governance. The Group assumes significance as it represents 90 per cent of the
global GDP and two-thirds of the world’s population.
With
the conclusion of Antalya Summit 2015(Nov 15-16), the G-20 has adopted a
comprehensive agenda, which revolves around three I’s – implementation,
investment, and inclusiveness. Implementation of past commitments, boosting
investment as a driver of growth and promoting inclusiveness in actions so that
all can share the benefits.
Terrorism:
As the Paris attacks took over the G-20 summit's agenda,
leaders of the member states vowed in a joint statement Monday to take a
stronger stance against terrorism. The statement said ” We
condemn, in the strongest possible terms, the heinous terrorist attacks in
Paris on 13 November and in Ankara on 10 October. They are an unacceptable
affront to all humanity. We reaffirm that terrorism cannot and should not be
associated with any religion, nationality, civilization or ethnic group.”
The
G20 has also emphasized its concern over the acute and growing flow of foreign
terrorist fighters and the threat it poses for all states and resolved to
tackle this through operational information sharing, border management and
criminal justice response. The Group also reiterated their resolve to work
together to prevent and suppress terrorist acts through increased international
solidarity and cooperation, in full recognition of the UN’s central role.
Earlier Mr.Modi demanded that the G20 push for
stronger coordinated global action for putting an end to finance supplies and
communication channels of terrorists and an early adoption of the Comprehensive
Convention on International Terrorism but there is nothing concrete on
terrorism as such except some bold announcements in the joint statement on
fight against terrorism and asking the Financial Action Task Force to report
back on the steps countries are taking to address the weaknesses identified to
cut off terrorism-related financial flows.
It is also very important that all the response
in view of terrorist activities would
look for solutions and in no way fuel the sense of alienation and vengeance
among nationals of the country where terrorist organizations flourish.
Economic Takeout's:
Recognizing
the fact that economic growth is uneven and continues to fall short of
expectations, the Group has vowed to implement sound macroeconomic policies in a cooperative manner to achieve strong,
sustainable and balanced growth. Against the concerns about the spillover effects of the
unconventional policies, also raised by Mr.Modi, the Group pledged to carefully
calibrate and clearly communicate their actions, to mitigate uncertainty,
minimize negative spillovers and promote transparency. Inclusion of measures to
support demand and structural reforms to lift growth, create jobs, promote
inclusiveness and reduce inequalities, in the growth strategies would be
crucial in fulfilling our commitments, the communiqué said.
The Group remains committed to achieve their
ambition to lift collective G20 GDP by an additional 2 percent by 2018 as
announced in Brisbane last year. For boosting investment, the Group has
developed country specific investment strategies and an analysis of these
strategies by the OECD indicates that it would contribute to lifting the
aggregate G20 investment to GDP ratio, by an estimated 1-percentage point by
2018.
At a time when plurilateral trade agreements (like
TPP) threatening the existence of multilateral trade system, the Group reaffirms
the importance of WTO and committed themselves to ensure that all these
regional, bilateral and plurilateral trade agreements are consistent under WTO
rules. This declaration will definitely lower the concerns of the nations left
out in plurilateral trade agreements.
In order to modernize the international tax
rules to avoid cross border tax evasion, the Group has endorsed the OECD report
on Base Erosion and Profit Shifting and urged all the member countries for its
timely implementation. The Group has also expressed their commitment towards enhancing
the transparency of their tax systems and to initiate information exchange
on-request as well as to automatic exchange of information by 2017 or end-2018.
Although the communiqué talks about
disappointment in the delay in implementing the IMF quota reforms agreed in
2010 but it is perhaps the first visible failure of G20. This has reduced the
credibility of G-20 as
a premium forum
for international economic cooperation.
Sustainability Reassured :
In line with Mr.Modi’s call on the G20 to prioritize
effective implementation of Sustainable Development Agenda 2030, the communiqué
said, “We are
strongly committed to implementing its outcomes to ensure that no-one is left
behind in our efforts to eradicate poverty and build an inclusive and
sustainable future for all.” In order to support sustainable development, the
Group will focus on areas such as energy access, food security and nutrition,
human resource development, quality infrastructure, financial inclusion and
domestic resource mobilization. The communiqué has recognized private players
has a strong role to play in poverty eradication and development and stressed
the need for all stakeholders to work together in order to promote
opportunities for low income people and communities to participate in markets
as buyers, suppliers and consumers.
Earlier, speaking at BRICS leaders meeting,
Mr.Narendra Modi sought a definite timeline before 2030 for reduction in cost
of transferring money, a move that will help India, as it is the world's
largest recipient of remittances. Though the communiqué talks about reducing
the transaction cost to 5 percent from 7.5 percent but it is silent on a
definite timeline.
In the field of energy, the Group has endorsed the
G20 Energy Access Action Plan: Voluntary Collaboration on Energy Access, the
first phase of which focuses on enhancing electricity access in Sub-Saharan
Africa where the problem is most acute.
Climate Change:
Accepting climate change as one of the greatest
challenges of our times, the communiqué said, ”We affirm that the Paris
agreement should be fair, balanced, ambitious, durable and dynamic. We
underscore our commitment to reaching an ambitious agreement in Paris that
reflects the principle of common but differentiated responsibilities and
respective capabilities, in light of different national circumstances. We
commit to work together for a successful outcome of the COP21.”
Refugee Crisis:
Recognizing the refugee crisis as global
concern with major humanitarian, political, social and economic consequences,
the Group has identified a need for a coordinated and comprehensive response to
tackle this crisis, as well as its long-term consequences. The importance of political
solutions to conflicts and increased cooperation for development has also been
emphasized. But after the attacks in Paris, there is a fear that public opinion
over refugee asylum in European countries would be hardened and it wont be easy
for the authorities to make a bold accommodative decision.
Conclusion:
Albeit,
the summit ended with all the positive statements but it is imperative for the
meaningful existence of this group that honest efforts should be made with all
sincerity to implement all decisions in letter and spirit. Else, G20 is bound
to loose its charm and influence over the issues, which assumes global
significance.
All
eyes for the implementation of the measures included in the communiqué.
written by - Shobhit Anand
