Presentation on theme: "Gs 2011-12 Global Governance Gruppi G20. The Group of Twenty (G-20) Finance Ministers and Central Bank Governors was established in 1999 to bring together."— Presentation transcript:
The Group of Twenty (G-20) Finance Ministers and Central Bank Governors was established in 1999 to bring together systemically important industrialized and developing economies to discuss key issues in the global economy. The inaugural meeting of the G-20 took place in Berlin, on December 15-16, 1999, hosted by German and Canadian finance ministers. Mandate The G-20 is the premier forum for our international economic development that promotes open and constructive discussion between industrial and emerging-market countries on key issues related to global economic stability. By contributing to the strengthening of the international financial architecture and providing opportunities for dialogue on national policies, international co-operation, and international financial institutions, the G-20 helps to support growth and development across the globe. Origins The G-20 was created as a response both to the financial crises of the late 1990s and to a growing recognition that key emerging-market countries were not adequately included in the core of global economic discussion and governance.
Chair Unlike international institutions such as the Organization for Economic Co-operation and Development (OECD), IMF or World Bank, the G-20 (like the G-7) has no permanent staff of its own. The G-20 chair rotates between members, and is selected from a different regional grouping of countries each year. In 2011 the G-20 chair is France. The chair is part of a revolving three-member management Troika of past, present and future chairs. The incumbent chair establishes a temporary secretariat for the duration of its term, which coordinates the group's work and organizes its meetings. The role of the Troika is to ensure continuity in the G-20's work
Interaction with other international organizations The G-20 cooperates closely with various other major international organizations and fora, as the potential to develop common positions on complex issues among G-20 members can add political momentum to decision- making in other bodies. The participation of the President of the World Bank, the Managing Director of the IMF and the chairs of the International Monetary and Financial Committee and the Development Committee in the G-20 meetings ensures that the G-20 process is well integrated with the activities of the Bretton Woods Institutions. The G-20 also works with, and encourages, other international groups and organizations, such as the Financial Stability Board and the Basel Committee on Banking Supervision, in progressing international and domestic economic policy reforms. 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 analyzing selected topics and avoid overlap.
G20 MAP ott-2010 The report was produced by staff from the IMF’s Research Department, in cooperation with the ILO,OECD, UNCTAD, and WTO During the global financial crisis, collective action by the G- 20 was critical for avoiding a catastrophic financial meltdown and averting a possible second Great Depression. Building on this success, G-20 Leaders pledged at the 2009 Pittsburgh Summit to work together to ensure a lasting recovery and thus launched the "Framework for Strong, Sustainable, and Balanced Growth". The backbone of this framework is a multilateral process, the Mutual Assessment Process (MAP)
How does the mutual assessment process relate to the WEO and GFSR? With MAP Fund staff will assess the coherence, consistency, and mutual compatibility of policy frameworks, and their effectiveness in securing strong, sustainable, and balanced global economic growth. A case of MAP http://www.imf.org/external/np/g20/pdf/062710a.pdf
The G-20 has requested the IMF to provide technical analysis as part of the MAP on progress toward their shared growth objectives.requested the IMF to provide technical analysis In the first phase, IMF Staff—with input from other international institutions—was tasked with analyzing how the G-20’s respective national and regional policy frameworks fit together, and assessing whether policies pursued by individual G-20 countries were collectively consistent with the G-20’s growth objectives. In the second phase, as the G-20 coalesced on identifying indicators for key imbalances that could jeopardize growth objectives, IMF Staff was asked to provide technical support to help develop indicative guidelines— i.e., benchmarks against which selected indicators would be assessed—to evaluate imbalances.
MAP to be based on two key steps: Aggregate G-20 members’ policy and macroeconomic frameworks. Ahead of the Toronto Summit in mid-2010, all G-20 members shared information—with each other and the IMF—about their policy plans and their expected performance over the next 3–5 years. The IMF aggregated this information to examine its global implications, drawing on input from the OECD on structural reforms; the ILO on labor market policies; the WTO on trade policies; the UNCTAD; the World Bank on progress in promoting development and poverty reduction. Assess whether members’ policies would help achieve the G-20’s objectives and evaluate alternate policy scenarios. The IMF addressed consistency issues with individual country submissions, assessed whether policies were consistent with the G-20’s growth objectives, and reported the results as a “base case scenario.” In collaboration with the G-20 Working Group, the IMF analyzed alternative policy scenarios and envisaged an “upside scenario”—one in which well-designed, collaborative policy actions across the G-20 would produce better outcomes for all, including significant strides in global demand rebalancing.alternative policy scenarios
The key take-away from the first stage of the MAP was that well-designed policy actions by the G-20 could increase growth, while making it more balanced, create more jobs, and reduce poverty across the world. As a result, G-20 Leaders reaffirmed their commitment to the MAP and agreed to identify policies that could bring everyone closer to the upside. The “upside scenario” also brought into sharp relief the re- emergence of old problems, particularly global imbalances At the Seoul Summit in November 2010, the G-20 made two key commitments: An enhanced MAP, with indicative guidelines for key imbalances. Leaders endorsed an “enhancedMAP” that would gauge progress—with technical assistance from the IMF and other international organizations—toward Framework goals through the use of indicative guidelines to identify and assess imbalances. Policy Commitments by the G-20. Each G-20 member identified the policy actions that it would take to help achieve the growth objectives identified by the Leaders. At their February 2011 meetings in Paris, G-20 agreed on the key indicators—public debt, fiscal deficits, private saving rate, private debt, and the external balance composed of the trade balance and net investment income flows and transfers. These indicators formed the basis for assessing the external and internal imbalances that could jeopardize the shared growth objectives. The membership agreed on, and with technical input from IMF staff, established indicative guidelines—i.e., qualitative or quantitative benchmarks against which the indicators would be assessed—to determine the presence of large imbalances, and analyze the causes, implications and corrective policies to address them.
Now assessment of progress toward external sustainability, with due concern for national circumstances. Specifically: In-depth analysis of large imbalances: A report providing an in-depth analysis of the nature of the imbalances, their root causes and impediments to adjustment, in those countries identified as having large imbalances is being finalized. It draws on independent analysis by IMF Staff, endorsed by the G-20, to complement the G-20’s own analysis. Action Plan at the November 2011 Cannes Summit: The assessment of progress toward external sustainability will lay the foundation for the Action Plan to be announced at the Cannes Summit in November. Leaders are expected to endorse specific policy actions that can help correct imbalances and ensure progress toward strong, sustainable and balanced growth.