G20 Finance Meeting: The G20 finance meeting, which was attended by finance leaders from 20 of the world’s largest economies, came to an end on Saturday. The G20 meeting on economic issues ended without a joint statement after Russia and China objected to the word “war” being used to describe the current situation in Ukraine.
Instead of a joint statement after a two-day meeting of finance ministers and central bank governors here, the G20 presidency’s summary and outcome document was released. It contained two paragraphs on the war but added that Russia and China did not agree on it.
disagreement over choice of words
On the first anniversary of Russia’s invasion of Ukraine, leaders of countries such as the US and France wanted to condemn Moscow for the invasion, while host India initially felt that the G20 was not the forum to address such an issue and wanted a more neutral term such as “crisis” or “challenge” to describe the “geopolitical situation”.
But ultimately it agreed to include the war’s impact on the global economy. Russia and China were angry at the use of the G20 forum to discuss political matters. India’s Finance Minister Nirmala Sitharaman is the chairperson. The summary states that the G20 nations “reaffirmed” their national positions on the Ukraine war.
“Most Members strongly condemn the war in Ukraine, stressing that it is causing excessive human suffering and exacerbating existing vulnerabilities in the global economy – impeding growth, increasing inflation, supply disrupting the supply chain, exacerbating energy and food insecurity, and exacerbating financial stability risks.
Russia, China disagree
“There were other views and differing assessments of the situation and sanctions. While acknowledging that the G20 is not a forum to address security issues, we acknowledge that security issues can have significant consequences for the global economy,” the summary Said, the statement adding this particular paragraph was not agreed upon by Russia and China.
It said that it was necessary to uphold international law and the multilateral system that safeguarded peace and stability.
Sitharaman’s statement on this issue
Addressing a press conference, Sitharaman said the omitted paragraphs were in fact what the G20 leaders had agreed upon at the previous summit in Bali, Indonesia, in November last year.
“But two countries, Russia and China, had objections. So certainly a communique cannot go out with a footnote and therefore it has to be a presidential summary and an outcome document,” she said.
“They did not want those two paragraphs to go into the communique because the leaders had prepared it and it was timed for the circumstances that prevailed then (in Bali) and therefore not now.”
Paragraph taken from the G20 Bali Declaration
Economic Affairs Secretary Ajay Seth said the language of the paragraph has been taken from the G20 Bali Declaration.
“The only change is the paragraph in the Bali Declaration which states that this year we have seen a war. Now the year has passed. Both Russia and China took the position that the mandate of finance ministers and central bank governors is to deal with Is for.” issues and their mandate is not on geopolitical issues. So he did not comment on the language part. They said it’s not their domain, so they won’t comment on the language part.”
“There was no request or demand to remove the word ‘war’, they only asked to remove the article because it was not the right place to put those articles. On the other hand, all the other 18 countries felt that the war It’s got an impact on the global economy so it’s the right place for those paragraphs,” he said.
There was a wide discussion on economic issues
The two-day meeting discussed a wide range of issues – from debt relief to poorer countries, to digital currencies and payments, reform of multilateral lending institutions such as the World Bank, climate change and financial inclusion.
The meeting discussed “credit vulnerability” in low and middle income countries. Flagging off debt restructuring in Zambia, Ethiopia, Ghana and Sri Lanka, Sitharaman’s summary said, “the official bilateral and multilateral negotiations by private creditors to address worsening debt situations and facilitate coordinated debt treatment for indebted countries Coordination needs to be strengthened.”
“We task the International Financial Architecture Working Group to develop a G20 note on the global debt landscape in a fair and comprehensive manner.”
It further states that sustainable finance is critical to achieving sustainable, resilient, inclusive and equitable economic growth that meets the needs of the present without compromising the ability of future generations to meet their own needs.
The meeting stressed the need for “the international community to step up its efforts to effectively combat money laundering, terrorism financing, and proliferation financing to enhance the integrity and resilience of the international financial system”.
Sitharaman’s summary noted that there has been a marginal improvement in the global economic outlook since the last meeting in October 2022. Credit Vulnerabilities in Many Emerging Market and Developing Economies (EMDEs).
“Therefore, we reiterate the need for well-calibrated monetary, fiscal, fiscal and structural policies to promote growth and maintain macroeconomic as well as financial stability. We will continue to enhance comprehensive policy cooperation and support the 2030 Agenda. Progress will support sustainable development,” it said.
Also, the adequacy of the IMF quota was reconsidered. The summary said the leaders “will continue the process of IMF governance reform under the 16th General Review of Quotas, including a new quota formula as a guide, to be completed by December 15, 2023.”
Earlier, US Treasury Secretary Janet Yellen said it was “absolutely necessary” that Russia be condemned in the communique.
French Finance Minister Bruno Le Maire said there was no way for the G20 to back down from a joint statement agreed at a final summit in Bali, Indonesia in November 2022, saying “the majority of members support the war in Ukraine”. strongly condemned”.
At the last G20 summit in Bali in November 2022, the declaration read: “The majority of members strongly condemn the war in Ukraine”. However, some member states put forward “other views and different assessments of the situation and sanctions”.
Russia, which is part of the G20, calls its invasion of Ukraine a “special military operation”.
(with PTI inputs)