Ensuring vaccines for all must for economic recovery: Sitharaman tells G-20
Business Standard|October 14, 2021
Nirmala Sitharaman
Nirmala Sitharaman (Photo: ANI)

Ensuring equitable vaccines for all is a key to the global economic recovery but it faces a significant challenge, Union Finance Minister Nirmala Sitharaman told her G-20 counterparts on Wednesday

In her remarks at the G20 Finance Ministers and Central Bank Governors Meeting, held on the sidelines of the Annual Meetings of the International Monetary Fund and the World Bank, Sitharaman said for the global economic recovery, it is essential to keep up the support, build resilience and enhance productivity and structural reforms.

These should

be our policy goals, Sitharaman said at the in-person meeting of the Fourth G20 Finance Ministers and Central Bank Governors (FMCBG) under the Italian presidency.

G-20 countries agreed to avoid any premature withdrawal of support measures while preserving financial stability and long-term fiscal sustainability besides safeguarding against downside risks and negative spillovers.

The meeting, the last one under the Italian Presidency, also saw discussions and agreements on various issues of global economic recovery, pandemic support to vulnerable countries, global health, climate action, international taxation and financial sector issues.

Appreciating the G-20's role in rallying the pandemic response and supporting vulnerable countries through debt relief measures and the new SDR allocation, Sitharaman suggested focusing efforts on making the benefits reach the intended countries.

Participating in the discussion on climate change, the finance minister emphasised that considering the varied policy spaces and different starting points of countries, the centrality of climate justice based on the United Nations Framework Convention on Climate Change and principles of the Paris Agreement would be critical for taking forward discussions towards successful outcomes.

She rued that the failure in fulfilling the existing international commitments on climate finance and technology weakens the collective efforts of the global community in the fight against climate change.

Sitharaman asked for climate justice to guide further discussions.

In her remarks, the finance minister appreciated the recent OECD decision of OECD on global tax.

This agreement, she noted, helps to address tax challenges arising from the digitalization of the economy and in dealing with Base Erosion and Profit Shifting issues.

For addressing tax challenges arising from the digitalisation of the economy, the G20 FMCBGs endorsed the final agreement as set out in the statement on a two-pillar solution and the Detailed Implementation Plan released by the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) on October 8, 2021.

The G-20 meeting of finance ministers and governors of central banks discussed a range of other topics, including the current macroeconomic conditions, further progress on reforms to international taxation, coordination on vaccine distribution and long-term pandemic preparedness.

They also discussed efforts within the G20 Finance Track on climate change mitigation and financial regulatory issues.

US Treasury Secretary Janet Yellen and her counterparts also continued productive discussions about international tax, an official release said.

Yellen noted the landmark agreement of virtually the entire global economy to end the race to the bottom on corporate taxation and how 136 nations, representing 94 per cent of the world's GDP, including all 20 nations in the G20, agreed to a new and specific set of provisions to uniformly tax the income of multinational companies, including a global minimum tax.

World Bank President David Malpass said developing countries need five billion more doses to vaccinate 70 per cent of their population by the middle of next year.

And there's a need to boost manufacturing capacity too. The International Finance Corporation IFC is investing to expand production in Africa, he said.

Some urgent steps are needed: swapping near-term vaccine delivery schedules with COVAX and AVAT; closing the gap between pledges and deliveries and eliminating trade and regulatory barriers.

Finance and health ministers in developing countries should also seek contracts that include early delivery schedules, he said.

Malpass called for ending the fossil fuel subsidy regimes and design appropriate carbon taxes and other incentives for carbon reduction.

This will be critical for bending the emissions curve, he said.

The G20 finance ministers and governors of the central banks agreed to coordinate their efforts to tackle climate change and protect the environment, as well as to promote transitions towards greener, more prosperous and inclusive economies and societies, a communique said after the meeting.

Following up on the July 2021 engagement on climate action, ministers and governors urged different G20 work streams to act in synergy to deepen the analysis of the economic and distributional impact of mitigation policies and develop the most appropriate policy mix to move towards low greenhouse gas emission economies.

Such mix should include investment in sustainable infrastructure and innovative technologies, as well as fiscal, market and regulatory tools, including carbon pricing mechanisms, to support clean energy transitions, the communique said.

According to the G-20 Communiqu, ministers and governors recognised that global recovery is continuing at a solid pace, mostly due to the rollout of vaccines and the continued policy support.

Nonetheless, the recovery remains highly divergent across and within countries and exposed to risks, thus the members have reaffirmed their willingness to continue sustaining the recovery, avoiding any premature withdrawal of support measures, it said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, October 14 2021. 07:46 IST

Best Autumn And Winter Escapes Across The World

Whether you’d rather take to the slopes or relax by the pool, Holly Kirkwood has the pick of autumn and winter escapes across the world

3 mins read
Country Life UK
October 13, 2021

Duran Duran – Forty Years Later

Duran Duran are back with their fifteen studio album Future Past

6 mins read
October 15, 2021

America Can't Ignore Afghanistan

Exclusive: Pakistani Prime Minister Imran Khan says the Taliban can be a partner for peace, not a terrorist threat - if the U.S. stays engaged.

10 mins read
October 08, 2021

Big Sky's Moment of Glory

The most rugged resort in Montana gets speedy lifts, luxury hotels, and fine dining to match its extreme slopes

6 mins read
Bloomberg Businessweek
October 18 - 25, 2021

Black Hairstyles Need Protection

In most U.S. states, employers and schools are allowed to discriminate against box braids, locs, and other traditional styles. A coalition of activists and legislators has started to change that.

10+ mins read
Bloomberg Businessweek
October 18 - 25, 2021

De-radicalizing the Extremists

Parents for Peace enlists ex-believers to help families win back loved ones drawn to Islamism, QAnon, and other ideologies. Demand has never been higher

10+ mins read
Bloomberg Businessweek
October 18 - 25, 2021

Down to Their Last Dollar

Businesses fail every day, from world-beaters (like TWA and Lehman Brothers) to sexy high-fliers (DeLorean, Enron) to Steady Eddie, old-school icons (Toys “R” Us, Sears). Sometimes, of course, market conditions simply turn Sisyphean. But often, when that boulder starts to roll backward, a leader’s grit, imagination, resourcefulness, and ability to conjure a little luck can mean the difference between a brave new chapter and, well, Chapter 11. Here, four businesses that went from nearly bust to total gangbusters.

3 mins read
October 2021

How Delane Parnell Beat the Game at Its Own Game

He was the living embodiment of the American Dream, a tireless entrepreneur who fought his way from Detroit’s meanest streets. Then Delane Parnell faced the moment that would define his gaming venture—and his life.

10+ mins read
October 2021

Farming Grows Up

A group of startups raises lettuce, tomatoes, and berries in high-rise plant factories. The founders aren’t farmers; they’re technologists who have shown that even the most grounded industry can be radically reinvented.

10+ mins read
October 2021

XGIMI – A Potent Portable

Even as TVs grow ever-larger, the projector category continues to be an active one, with more recent designs like ultra-short throw models giving viewers an alternative to room-dominating hangfrom-ceiling setups.

10+ mins read
Sound & Vision
October - November 2021