India China Chronicle - November 2013

I dette nummeret

The forum of the world’s largest economies, G-20, was mobilized
in the wake of the financial crisis of 2008. The agenda was to boost
sustainable, inclusive and balanced growth to make the global
economy stronger and stable. However, five years hence, the tone
and tenor of G-20 has changed. At the birth of G20, it seemed that
the responsibility of financial governance would be shouldered by
emerging economies in significant part, but it has not turned out so.
The Western financial institutions have continued to dominate the
regulation agenda excluding the voices of emerging economies. For
example, the powerful countries in G20 have not come clean on tax
justice and anti-corruption as part of financial reform, The Guardian
reported in September this year.There are other issues too viz lack
of coordination in the approach to G20 agenda. The industrialized
and emerging economies hardly arrive at any consensus, marring the
effectiveness of the objectives. There has not been much headway in
areas of systemic and structural solutions due to internal divide. As
the Western countries step on the economic recovery, their focus has
shifted on fiscal deficits and debt problems putting on the backburner
the promise of shared growth.
The overall focus of G20 has also gone hazy; the agenda now
incorporates everything from climate change, to food security and
unemployment. In Russia, this September, tension in the Arabian
Peninsula, notably the Syrian issue, dominated the G20 talks. Last
year, the Russian President Vladimir Putin had said that the 2013
summit would be related to the reform of the international currency,
financial system, strengthening of international financial institutions
and market regulation. However, it was politics that set the tone at
St Petersburg. When the 2014 Summit is held in Brisbane, Australia,
hopefully, the agenda will be more focused, restricted to global
macroeconomic coordination and financial regulation.
Due to its weak character, the utility of G20 has, come into
question. The need, therefore, is for the body to be institutionalized and
a permanent secretariat be established to review the implementation
of the decisions taken. But will these measures indeed help? I have
my doubts, because, unless the emerging economies’ are made equal
partners in decision-making for a shared and equitable growth, the
utility of G20 will always be under scrutiny.