Now is the Time For G20 to Step Up to its Duties
Published: August 29, 2013 (Issue # 1775)
The 1997 Asian financial crisis has increased the need for a more inclusive and balanced global economic architecture. The 2008 global financial crisis further highlighted the flaws of the current international financial architecture, and the Group of 20 became the most effective forum for international economic cooperation and crisis management. For the first time, emerging countries have been given a larger voice in global economic governance.
Rome was not built in a day. The G20 platform is being constructed gradually by the joint efforts of advanced and emerging economies. The G20 was not created to save the world. As a process, it needs to be improved and revived through better policy coordination and internal functioning. The G20 needs to stick to its commitment to open its doors to countries from under-represented regions and to carry out outreach activities.
The Group of 20 is now the most effective forum for global economic cooperation and crisis management.
Remedying the global economy takes time and patience, and the G20 needs to dream small and act big. Instead of waving banners with ambitious slogans, the G20 countries should put their feet down to earth and avoid becoming a just a talk shop. The onus is on the G20 to deliver its commitments. It needs to have a focus on confidence-building in global economic recovery and transform this confidence into concrete action.
The 8th G20 summit will be held next week in St. Petersburg. The summit's theme is growth and employment, which accurately meets the needs of the global economy to break out of its slowdown. Since taking the G20 rotating presidency in 2013, Russia has done a good job of preparing for the summit, and it is expected to be a success and a milestone in the G20 process.
The recovery of the global economy is still sluggish, and there are great expectations from the world for the St. Petersburg summit to prescribe a stimulant to boost global growth.
To this end, the G20 should rejuvenate macroeconomic cooperation and coordination. To be sure, we live in a globalized world where deeper interdependence has called on every country to carry out responsible economic polices.
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