G20 summit


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Brief desc of G20

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G20 summit

  1. 1. G20 - Introduction <ul><li>Established in 1999, in the wake of the 1997 Asian Financial </li></ul><ul><li>Crisis, to bring together major advanced and emerging </li></ul><ul><li>economies to stabilize the global financial market. </li></ul><ul><li>Bring together systemically important industrialized and </li></ul><ul><li>developing economies to discuss key issues in the global </li></ul><ul><li>economy </li></ul><ul><li>Held annual Finance Ministers and Central Bank Governors' </li></ul><ul><li>meetings </li></ul><ul><li>Discussed measures to promote the financial stability of the </li></ul><ul><li>world and to achieve a sustainable economic growth and </li></ul><ul><li>development </li></ul><ul><li>G20 Summits have been held in Washington in 2008, in London </li></ul><ul><li>and Pittsburgh in 2009, and in Toronto and Seoul in 2010 </li></ul><ul><li>France is very honoured to chair the Group of Twenty in 2011 </li></ul>
  2. 2. Origin <ul><li>proposed by former Canadian Finance Minister , Paul Martin </li></ul><ul><li>Prior to the G-20 creation, similar groupings to promote dialogue and analysis had been established at the initiative of the G-7 </li></ul><ul><li>G-22 met at Washington D.C. in April and October 1998. Its aim was to involve non-G-7 countries in the resolution of global aspects of the financial crisis then affecting emerging-market countries. </li></ul><ul><li>Two subsequent meetings comprising a larger group of participants (G-33) held in March and April 1999 discussed reforms of the global economy and the international financial system. </li></ul><ul><li>The proposals made by the G-22 and the G-33 to reduce the world economy's susceptibility to crises showed the potential benefits of a regular international consultative forum embracing the emerging-market countries resulted in the creation of the G-20 in 1999. </li></ul>
  3. 3. Objective <ul><li>Support growth and development across globe </li></ul><ul><li>Strengthening of the international financial architecture and providing opportunities for dialogue on national policies </li></ul><ul><li>International co-operation, and international financial institutions </li></ul><ul><li>Strengthen international cooperation. </li></ul><ul><li>Creation of the framework for a strong, sustainable and balanced growth designed to enhance macroeconomic cooperation among the G20 members </li></ul>
  4. 4. Members US Canada France Germany Italy UK Japan Russia Australia Brazil Mexico Argentina China India South Korea Indonesia Saudi Arabia Turkey South Africa EU/ECB IMF/World Bank Permanent guest: Spain Special guests WEED - PeWa
  5. 5. Attendees - Forums and Institutions   <ul><li>Represented by : </li></ul><ul><li>The Managing Director of International Monetary Fund </li></ul><ul><li>The Chairman of the International Monetary Fund </li></ul><ul><li>The President of the World Bank </li></ul><ul><li>International Monetary and Financial Committee </li></ul><ul><li>The Chairman of the Development Committee </li></ul>
  6. 6. Attendees/Information <ul><li>The European Union, who is represented by the rotating Council presidency and the European Central Bank, is the 20th member of the G-20 </li></ul><ul><li>To ensure global economic fora and institutions work together, the Managing Director IMF and the President of the World Bank, plus the chairs of the International Monetary and Financial Committee and Development Committee of the IMF and World Bank, also participate in G-20 meetings on an ex-officio basis </li></ul><ul><li>Together, member countries represent around 90 per cent of global GNP, 80 per cent of world trade (including EU intra-trade) as well as two-thirds of the world's population </li></ul><ul><li>In addition, experts from private-sector institutions and non-government organisations are invited to G-20 meetings on an ad hoc basis in order to exploit synergies in analysing selected topics and avoid overlap. </li></ul>
  7. 7. Chair <ul><li>The G-20 has no permanent staff of its own </li></ul><ul><li>The G-20 chair rotates between members, and is selected from a different regional grouping of countries each year. </li></ul><ul><li>The chair is part of a revolving three-member management Troika of past, present and future chairs. </li></ul><ul><li>The incumbent chair establishes a temporary secretariat for the duration of its term, which coordinates the group's work and organizes its meetings. </li></ul><ul><li>The role of the Troika is to ensure continuity in the G-20's work and management across host years. </li></ul><ul><li>France G-20 chair in 2011 </li></ul><ul><li>In 2010, French President Nicolas Sarkozy proposed permanent secretariat – suggested Seoul and Paris </li></ul>
  8. 8. Former G-20 Chairs <ul><li>1999-2001 Canada </li></ul><ul><li>2002 India </li></ul><ul><li>2003 Mexico </li></ul><ul><li>2004 Germany </li></ul><ul><li>2005 China </li></ul><ul><li>2006 Australia </li></ul><ul><li>2007 South Africa </li></ul><ul><li>2008 Brazil </li></ul><ul><li>2009 United Kingdom </li></ul><ul><li>2010 Republic of Korea </li></ul><ul><li>2011 France </li></ul><ul><li>2012 Mexico </li></ul>
  9. 9. Schedules of G-20 meetings <ul><ul><li>Date Host country Host city </li></ul></ul><ul><li>1 st Nov 2008 USA Washington, D.C. </li></ul><ul><li>2 nd April 2009 UK London </li></ul><ul><li>3 rd Sept 2009 USA Pittsburgh </li></ul><ul><li>4 th June 2010 Canada Toronto </li></ul><ul><li>5 th Nov 2010 South Korea Seoul </li></ul><ul><li>6 th Nov 2011 France Cannes </li></ul><ul><li>7 th 2012 Mexico TBD </li></ul>
  10. 10. Achievements <ul><li>Agreement about policies for growth </li></ul><ul><li>Reducing abuse of the financial system </li></ul><ul><li>Dealing with financial crises </li></ul><ul><li>Transparency of fiscal policy and combating money laundering and financing of terrorism </li></ul><ul><li>Combat abuses of the financial system and illicit activities including tax evasion </li></ul><ul><li>Develop a common view among members on issues related to further development of the global economic and financial system </li></ul><ul><li>Strengthen international cooperation </li></ul><ul><li>global governance dramatically improved to better take into consideration the role and the needs of emerging of developing countries through the ambitious reforms of the governance of the IMF and the World Bank. </li></ul>
  11. 11. 2006 – Discussion points <ul><li>Building and Sustaining Prosperity </li></ul><ul><li>Domestic reforms to achieve sustained growth </li></ul><ul><li>Global energy </li></ul><ul><li>Resource commodity markets </li></ul><ul><li>‘ reform’ of the World Bank and IMF </li></ul><ul><li>Impact of demographic changes due to an aging population </li></ul>
  12. 12. 1 st G20, Washington – Nov2008 <ul><li>Also Known as Bretton Woods II </li></ul><ul><li>Common understanding of the root causes of the global economic crisis and finding solution to the crisis </li></ul><ul><li>  Review of countries' past and future actions addressing the immediate crisis and contributing to growth </li></ul><ul><li>Agreement on common principles for reforming </li></ul><ul><li> Financial markets </li></ul><ul><li>Action plan to implement those principles and to develop further specific recommendations for later review </li></ul><ul><li>Reaffirmation of commitment to free market principles </li></ul><ul><li>Competition in Financial markets </li></ul><ul><li>Clean energy </li></ul><ul><li>Economic development </li></ul><ul><li>Fiscal elements of growth and development </li></ul>
  13. 13. 2 nd G-20 Summit – outcome (London, Apr2009) <ul><li>Triple IMF’s capacity to $ 750 billion to assist crisis-affected countries </li></ul><ul><li>- by moving ahead with bilateral arrangements </li></ul><ul><li>through bonds issued by the Fund </li></ul><ul><li>- through an expansion of the New Arrangement </li></ul><ul><li>to Borrow. </li></ul><ul><li>Concessional lending to poor countries by IMF </li></ul><ul><li>Mandated the IMF to make a new general allocation of Special Drawing Rights (SDRs) which will increase global liquidity by injecting $250 billion into the world economy which will provide a significant boost to the international reserves of African countries </li></ul>
  14. 14. 2 nd G-20 Summit – Outcome (London, Apr2009)-2 <ul><li>The G-20 also affirmed the need for coordinated action on fiscal policy through fiscal stimulus programs and improve regulation in financial markets in order to avoid a new crisis of the same kind. </li></ul><ul><li>Discussed the banking crisis and the need to clean up the balance sheet of the banks to achieve an economic recovery in early 2010. </li></ul><ul><li>IMF to conduct regular assessments of the world economies and provide an enhanced early warning system to avoid a new crisis and commitment by world governments to listen to the warnings, as well as a pledge to confidentiality within the Fund </li></ul>
  15. 15. 3 rd G-20 Summit – Pittsburg (Sept 2009) <ul><li>Framework for Strong, Sustainable, and Balanced Growth </li></ul><ul><li>Strengthening the International Financial Regulatory System </li></ul><ul><li>Modernizing Global Institutions to Reflect today's Global economy </li></ul><ul><li>Reforming the Mandate, Mission, and Governance of the IMF </li></ul><ul><li>Reforming the Mission, Mandate, and Governance of Development Banks </li></ul><ul><li>Energy Security and Climate Change </li></ul><ul><li>Strengthening Support for the Most Vulnerable </li></ul><ul><li>Putting Quality Jobs at the Heart of the Recovery </li></ul><ul><li>An Open Global Economy </li></ul>
  16. 16. 4 th G20 Summit – Toronto, Canada (Jun2010) <ul><li>Prime issue of the summit was the recovery from the ongoing global recession and the more recent European debt crisis </li></ul><ul><li>International aid to Africa and other developing nations </li></ul><ul><li>Key agreement made by developed nations to cut annual budget deficits in half by 2013 and reducing debt-to-GDP ratio in each economy by 2016 </li></ul><ul><li>Financial institutions to keep a higher amount of financial capital in case of future financial shocks </li></ul><ul><li>Climate change and food security </li></ul><ul><li>Reiterated their commitment to “greener growth” </li></ul>
  17. 17. 5 th G-20 Summit – Seoul, Nov2009 - Agenda <ul><li>Following up on previous G20 commitments like : </li></ul><ul><li>Enhance international cooperation to generate strong, sustainable and balanced growth </li></ul><ul><li>Safeguarding the ongoing recovery and restoring fiscal </li></ul><ul><li>sustainability </li></ul><ul><li>Building a stronger international financial regulatory </li></ul><ul><li> system </li></ul><ul><li>Ensuring Ongoing Global Economic Recovery </li></ul><ul><li>Strengthening the International Financial Regulatory system </li></ul><ul><li>Modernizing the International Financial Institutions </li></ul>
  18. 18. 6 th G-20 Summit – Cannes (Nov2011) <ul><li>2011 will be the occasion to build on the recent successes of the G20 </li></ul><ul><li>Ensure an active follow-up on processes already underway. </li></ul><ul><li>To address other essential issues which are crucial to global stability such as the reform of the international monetary system and the volatility of commodity prices </li></ul>
  19. 19. <ul><li>Heads of the G-20 members at the London summit pledged to abstain from imposing any trade protectionist measures </li></ul>
  20. 20. Criticisms <ul><li>Norwegian perspective - Even though one of the major contributor of development programs in the World Bank and United Nations, it is not a member of the E.U. and thus not represented in the G-20 , characterized the G-20 as a &quot;self-appointment group”, arguing that it undermines the legitimacy of organizations like the IMF, World Bank and United Nations, composition is determined by the major countries and powers </li></ul>
  21. 21. Criticisms.. Contd. <ul><li>Singapore - refusing to acknowledge the G20's legitimacy, or accepting that the G20 will be the premier forum for international economic cooperation. Singapore has taken a leading role in organizing an informal &quot;Global Governance Group&quot; of 28 non-G20 countries </li></ul><ul><li>The G20's transparency has also been questioned by critics who call attention to the absence of a charter and the fact that the most important meetings are closed-door </li></ul>
  22. 22. Critics - Proposal <ul><li>Critics propose alternative such as an Economic Security Council within the United Nations , where members should be elected by the General Assembly  based on their importance in the world economy and the contribution they are willing to provide to world economic development </li></ul>