The G20 must meet the challenges of the global crisis

The G20 must meet the challenges of the global crisis



Be the finance minister and central bank governor from the 20 largest economies in the world Meet in Venice this week, They must seize this important opportunity to make progress on the world’s greatest challenge: ending the pandemic on a global scale, uniting global efforts to curb climate change and Ensuring a solid economic recovery Anywhere on earth.

From these three aspects, time is running out. Plans that fail to promise to end the pandemic by vaccinating all adults in the world (such as the IMF’s $50 billion plan) are unreasonable, but also self-defeating. As long as the pandemic is not controlled anywhere, new and potential vaccine-resistant virus mutations will be at risk everywhere.

Many countries are recovering strongly, but they are also vulnerable to economic problems elsewhere. The massive accumulation of debt necessary to protect jobs and businesses during the blockade left a fragile financial system and balance sheet. At the same time, the normalization of rich countries’ policies will bring risks to emerging economies (if it is too early, it will also bring risks to the rich countries themselves). As for climate change, policies are still catching up to the scale of the carbon transition, and most leaders are now fortunate to admit that this is necessary.

If speed is of the essence, then cooperation between rich and poor countries is also important, otherwise none of these problems can be fully resolved.Even if the leadership G7 largest high-income country Serious commitments have been made to meet these challenges- They haven’t ——It is not enough to rely on it. The emerging world can play its part in vaccination, climate change and recovery.

Therefore, it is important to adopt a common approach at the G20 level. The biggest political problem to overcome is the lack of trust between the rich world and the emerging world. There is good reason for this: Although it is understandable that leaders of rich countries take care of their people first, they hardly realize how big the gap between rich and poor countries is.

More than half of adults in most high-income countries are partially or fully vaccinated; many poor countries Stay in single digitsWealthy countries have been reluctant to advance ambitious climate plans – including potential punitive trade measures against countries that do not follow suit – but have not fulfilled their promise of $100 billion a year a decade ago Funding climate transition in poor countries. Poor and middle countries cannot afford the kind of generous aid that rich countries provide for their economies.

Restoring trust requires a concerted effort from all parties, but rich countries can facilitate this process by supporting them with real money to rebuild better promises. It won’t cost them too much. The International Monetary Fund estimates that the cost of ending the pandemic is only one-thousandth of the annual economic output of rich countries. The climate funding promised to poor countries is also insignificant.

There is no reason to delay; and no longer resist the release of new proposals Special drawing rights, International reserve assets. In order to have any benefits, the new SDRs must be offered to poorer countries on preferential terms—rather than being distributed to each country according to economic weight as usual. This will not cost rich countries a penny, because it will involve the creation of new reserves.

The G20 aims to coordinate the global response to the Asian and global financial crises. Today’s triple challenge is more profound than both. The forum-our closest to the world government forum-must once again prove its courage.


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