The G20 ini­tia­tive

Enterprise - - World view -

The French pres­i­dency of G20 was aimed at fram­ing an­swers to the Eu­ro­zone cri­sis, as well as de­sign­ing long term so­lu­tions for the sta­bi­liza­tion of the eco­nomic, fi­nan­cial and mone­tary worlds.

The G20, which will re­main an in­for­mal fo­rum of heads of state and gov­ern­ments solely ded­i­cated to eco­nomic is­sues, is more than ever a key part­ner to the United Na­tions for de­bat­ing and bring­ing re­sponses to global crises.

The Cannes Sum­mit would be an op­por­tu­nity to present the progress on re­form­ing the in­ter­na­tional mone­tary sys­tem and the fight against ex­ces­sive volatil­ity in com­mod­ity prices, which af­fects pri­mar­ily the least de­vel­oped coun­tries. Fi­nally, in Cannes, the G20 coun­tries would re­new their am­bi­tious so­cial com­mit­ments and reaf­firm the im­por­tance of de­vel­op­ment to guar­an­tee a sus­tain­able global growth.

France’s key pri­or­i­ties within the frame­work of its pres­i­dency of the G20 are as fol­lows:

1. Re­form­ing the in­ter­na­tional mone­tary

sys­tem (IMS)

Es­tab­lish­ing a more sta­ble and ro­bust IMS re­quires re­duc­ing im­bal­ances and in­creased co­or­di­na­tion of eco­nomic poli­cies within the frame­work for strong, sus­tain­able and bal­anced growth. The Sum­mit aimed at re­form­ing the in­ter­na­tional mone­tary sys­tem in or­der to es­tab­lish col­lec­tive re­sponses to the de­fi­cien­cies of high ex­change rate volatil­ity, grow­ing im­bal­ances and ever-in­creas­ing stock­pil­ing of for­eign ex­change re­serves by emerg­ing coun­tries which may be con­fronted by the sud­den, largescale flight of in­ter­na­tional cap­i­tal.

2. Strength­en­ing fi­nan­cial reg­u­la­tion

The Sum­mit sought to strengthen fi­nan­cial reg­u­la­tion par­tic­u­larly in ar­eas of com­mod­ity mar­kets.

3. Com­bat­ing com­mod­ity price volatil­ity

The Sum­mit at­tempted to find col­lec­tive so­lu­tions to re­duce ex­ces­sive com­mod­ity price volatil­ity - par­tic­u­larly of agri­cul­tural and en­ergy com­mod­ity prices - which un­der­mines world growth and threat­ens food se­cu­rity. There were pro­posed so­lu­tions for strength­en­ing food se­cu­rity and de­vel­op­ing agri­cul­tural out­put.

4. Sup­port­ing em­ploy­ment and strength­en­ing the so­cial di­men­sion of glob­al­iza­tion

The G20 Sum­mit pro­moted four pri­or­ity goals in this field: em­ploy­ment, par­tic­u­larly for young peo­ple and the most vul­ner­a­ble; the con­sol­i­da­tion of the so­cial pro­tec­tion floor; re­spect for so­cial and la­bor rights; and more co­her­ent strate­gies by in­ter­na­tional or­ga­ni­za­tions.

5. Im­prov­ing global gov­er­nance

Our economies need mod­ern­ized in­ter­na­tional in­sti­tu­tions that are ca­pa­ble of ef­fec­tively reg­u­lat­ing glob­al­iza­tion. France will seek to sup­port the G20 in its role as the premier eco­nomic co­op­er­a­tion body. France will also strive to foster more con­sis­tent eco­nomic, so­cial and en­vi­ron­men­tal ac­tions by the ded­i­cated in­ter­na­tional in­sti­tu­tions, and to iden­tify ar­eas in which this gov­er­nance is in­ad­e­quate. In par­tic­u­lar, syn­ergy be­tween the G20 and the United Na­tions will be strength­ened.

6. Act­ing for de­vel­op­ment

The French Pres­i­dency is par­tic­u­larly com­mit­ted to sup­port the de­vel­op­ment of in­fra­struc­tures and en­sur­ing food se­cu­rity in the most vul­ner­a­ble coun­tries. The Sum­mit de­bated on de­vel­op­ment fund­ing through in­no­va­tive fi­nanc­ing, par­tic­u­larly the fi­nan­cial trans­ac­tion tax.

The G20 lead­ers un­der­took the fol­low­ing de­ci­sions at the con­clu­sion of the Sum­mit: • Adop­tion of an am­bi­tious ac­tion plan for

growth and jobs. • A fresh ap­proach to world trade ne­go­ti­a­tions

in 2012 on the ba­sis of the Doha man­date. • A dis­cus­sion of a pos­si­ble global fi­nan­cial trans­ac­tion tax, which the Com­mis­sion has pro­posed for the EU – the tax can en­sure the fi­nan­cial sec­tor makes a fair con­tri­bu­tion to so­ci­ety and would also help to sup­port the world’s poor­est. • The im­por­tance of food se­cu­rity and agri­cul­ture. • Im­ple­ment­ing and strength­en­ing fi­nan­cial re­form. • An agree­ment to in­crease the IMF re­sources when needed “for the ben­e­fit of the en­tire mem­ber­ship”. ◆

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