JHA WASHINGTON: Ensuring equitable vaccines for all is the key to global economic recovery, but it faces a significant challenge, Union Finance Minister Nirmala Sitharaman told her G-20 counterparts on Wednesday. Held on the sidelines of the annual meetings of the International Monetary Fund and the World Bank, Sitharaman said that for global economic recovery, it is necessary to maintain support, build resilience and increase productivity and structural reforms. These should be our policy goals, Sitharaman said at the in-person meeting of the 4th G20 Finance Ministers and Central Bank Governors (FMCBG) under the Italian presidency.
G20 countries agreed to avoid premature withdrawal of support measures while maintaining financial stability and long-term financial stability, in addition to protecting against downside risks and downside spillovers. The last meeting under the Italian Presidency also saw discussions and agreements on various issues ranging from global economic recovery, pandemic support to vulnerable countries, global health, climate action, international taxation and financial sector issues.
Appreciating the role of the G-20 in the response to the pandemic and supporting vulnerable countries through debt relief measures and new SDR allocations, Sitharaman suggested focusing efforts on extending the benefits to the intended countries. Participating in the discussion on climate change, the Finance Minister emphasized the need for climate justice based on the principles of the United Nations Framework Convention on Climate Change and the Paris Agreement, while considering the various starting points of different policy spaces and countries. Centrality will be important. To steer the discussion towards successful outcomes.
He lamented that the failure to meet existing international commitments on climate finance and technology undermines the collective efforts of the global community in the fight against climate change. Sitharaman asked for climate justice to guide further discussions.
In his remarks, the Finance Minister appreciated the recent OECD decision on global taxation. He said that this agreement helps in tackling the tax challenges arising out of digitization of the economy and issues of base erosion and profit shifting.
To address the tax challenges arising from the digitization of the economy, the G20 FMCBG endorsed the final agreement set out in the Statement on Two-Pillar Solutions and the detailed implementation plan released by the OECD/G20 Inclusive Framework on Base Erosion and Benefit Transfer. (BEPS) on October 8, 2021. Several other topics were discussed at the G20 meeting of finance ministers and central bank governors, including the current macroeconomic situation, further progress on reforms in international taxation, coordination on vaccine distribution and longer term. The word pandemic preparation.
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 the international tax, an official release said.
Yellen referred to the historic agreement of virtually the entire global economy to end the race on corporate taxation to the bottom and 136 countries representing 94 percent of the world’s GDP, including all 20 countries in the G20, set a new and distinct agreed upon. Provisions to equitably 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 percent of their population by the middle of next year.
And manufacturing capacity also needs to be boosted. He said that the International Finance Corporation IFC is investing in Africa to increase production. Some urgent steps are needed: swapping of near-term vaccine delivery schedules with COVAX and AVAT; Bridging the gap between pledges and deliveries and removing trade and regulatory barriers.
He said finance and health ministers in developing countries should also look for contracts that include expedited delivery programs. Malpass called for an end to the fossil fuel subsidy regime and to design appropriate carbon taxes and other incentives to cut carbon.
He said it would be crucial to bend the emissions curve. A release issued after the meeting said that the G20 finance ministers and central bank governors are committed to tackling climate change and protecting the environment, as well as promoting the transition towards greener, more prosperous and inclusive economies and societies. agreed to coordinate efforts.
Following the July 2021 engagement on climate action, ministers and governors synergize with various G20 working streams to deepen analysis of the economic and distributive impact of mitigation policies and develop the most appropriate policy mix to move toward lower greenhouse gas emissions. urged to work in economies. Such a mix should include investments in sustainable infrastructure and innovative technologies as well as financial, market and regulatory tools, including carbon pricing mechanisms, to support the clean energy transition, the release said.
According to the G-20 communiqué, ministers and governors recognized that global recovery is continuing at a solid pace, mostly due to the rollout of vaccines and continued policy support. Nevertheless, recovery is highly varied and exposed to risks across countries and within countries, thus members have reaffirmed their desire to continue with the recovery, to avoid premature withdrawal of support measures.
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