Prospects for the 2015 G20 Summit
The Group of Twenty (G20) is the premier forum for its members’ international economic cooperation and decision-making. Its membership comprises 19 countries plus the European Union and together they represent 85% of global Gross Domestic Product. The 2015 G20 Summit will be held in Turkey for the first time and the southern city of Antalya which is the 10th most visited city in the world will be its host. Although the effects of the 2008 global financial crisis have somewhat receded, one of the main policy areas which will be focused on I believe is the strengthening of the global economic recovery and strategies for long term sustainable economics growth.
The three key objectives of the 2015 G20 agenda will be:
- Strengthening the Global Recovery and Lifting Potential
- Enhancing Resilience
- Buttressing Sustainability
The first objective is focusing on robust global growth through collective action with a view to lift the potential of the global economy. This is because the shared objective for the G20 is strong, balanced and sustainable growth. One of the main strategies Turkey has put forward, is to develop policies to better integrate disadvantaged groups such as women and youth into the economy, reduce inequality and promote integration of Small & Medium sized Enterprises and Low Income Developing Countries, into the global economy. These discussions will also have a particular focus on macroeconomic policy cooperation among the G20 countries, through increased trade and looking at new and existing agreements to be reformed.
The second key objective for the summit is to enhance the resilience of the financial system, through stronger financial architecture, a fair international tax system and a level playing field for business. One of the main causes of the global financial crisis was a weak and ineffective regulatory system and the summit will aim to finalise a new and stronger regulatory framework. A deal is also likely on the new Base Erosion and Profit Shifting Project which was initiated to look into multinational corporations tax avoidance activities and to close the loopholes with an increased emphasis on bilateral and multilateral cooperation between tax authorities.
The third objective of buttressing sustainability will be focusing on the issues of development, energy and climate change finance. The central focus will be lifting prosperity across the globe, with a particular focus on supporting efforts to eradicate poverty and ensure sustainable development in Low Income Developing Countries. When world leaders gathered on the 25th September 2015 at the United Nations in New York, they adopted the 2030 agenda for sustainable development. The G20 summit may address some of these goals and how the members can work together to help achieve them. Supporting food security in the developing world will also be given particular attention, focusing on sustainable food systems and improving productivity in smallholder farms. Turkey will be the first G20 Presidency to implement the Food Security and Nutrition Framework which was endorsed at the Brisbane 2014 summit and is aimed at strengthening growth by lifting investment in food systems, raising productivity to expand food supply, and increasing incomes and quality jobs. Today 1.3 billion people still do not have access to reliable energy so energy access and the finance solutions to tackle climate change are also to be discussed.
The Turkish Prime Minister, Ahmet Davutoglu has also strongly put forward his priorities for the Summit which are to achieve inclusiveness, implementation and investment. The three I’s as he likes to call it. Inclusiveness by ensuring that the benefits of growth and prosperity are shared by all segments of society. Implementation by ensuring that collective G20 commitments are upheld, which is also vital for the credibility of the organisation. And finally investment for growth which is critical for generating new jobs and also lifting the global growth potential.
With Turkey facing domestic problems of violence and terrorism, the Syrian refugee crisis and next year’s summit in China taking some of the limelight; Turkey will seem to want to prove its worth and so the 2015 G20 summit is likely to be a memorable one.
