The G20 countries’ ability to respond collectively to mounting challenges facing the multilateral system will determine both the speed of global recovery and the future of sustainable development.
This is according to National Treasury Director-General, Dr Duncan Pieterse, who delivered remarks at the opening session of the G20 Finance Track meetings being held in KwaZulu-Natal this week.
“The multilateral system is being tested, and our collective ability to respond, will shape the pace of our recovery, but also the prospects for inclusive and sustainable development.
“As the G20, we have the responsibility to demonstrate leadership, and our Presidency places a very strong emphasis on strengthening the role of the G20 in delivering concrete solutions, fostering a more stable and effective and resilient international financial architecture, enhancing debt sustainability, addressing liquidity challenges, as well as strengthening multilateral development banks, and ensuring financing for development,” Pieterse said.
He added that the meetings take place at a time of heightened global economic uncertainty.
“While there are signs of resilience in some areas, various challenges remain: uneven growth trajectories, elevated debt levels, persistent inflationary pressures, and the complex implications of tightening financial conditions.
“At the same time, various long-term transitions including digitalisation, climate finance and demographic shifts are reshaping the foundations of our economies,” the DG noted.
Finance track meetings
Pieterse explained that this week, sessions have been dedicated in line with “our commitment to deepen policy dialogue at the Deputies level”.
“These discussions are instrumental in shaping the outcomes of the Finance Track, and reaffirming our commitment as the Presidency to Solidarity, Equality, Sustainability,” he said.
On Monday, the sessions kicked off with an update from the Council of Europe Development Bank on its monitoring and reporting framework.
“[This framework] is a critical tool for tackling the implementation of the G20 MDB roadmap as it enables MDBs to assess how they are working better as a system, enhancing their effectiveness and maximising developmental impact.
“This will be followed by a pandemic response financing simulation exercise that will be facilitated by the World Bank and the objective of this exercise is to simulate a coordinated pandemic response financing scenario, enabling participants to explore practical mechanisms for mobilising and deploying resources rapidly and effectively during a global health emergency,” he said.
Global sovereign debt
On Tuesday, the International Monetary Fund and the World Bank will give updates on the global sovereign debt roundtable.
“This discussion is geared towards promoting information exchange between the GSDR and the G20 to enhance the effectiveness of both platforms while respecting the distinct roles.
“Significant progress has been made on the GSDR work, including the publication of the GSDR playbook on sovereign debt restructurings during the Spring Meetings in April, and another important milestone that was achieved was the publication of a G20 note on the steps of debt restructuring under the common framework,” Pieterse explained.
On the same day, the Chairperson of the Africa Expert Panel, led by former Minister of Finance for South Africa, Trevor Manuel, will give an update on the work of the panel.
“[This] section will provide Deputies with an overview of the work of the Panel, which…aims to advance Africa’s collective development interest within the G20 Finance Track. We will be getting an update from Minister Manuel on this so that we can ensure that we align African priorities with the global economic reform efforts that we are discussing in the G20,” he said.
Over the next two days, the delegates will have sessions dedicated to the drafting of a communique.
“We really want to thank the G20 members for very constructive inputs and engagements thus far, which started last week virtually, and we believe that those engagements have set a very strong foundation for our discussions over the next two days.
“We are very pleased with the collaborative spirit shown during the virtual discussions, and we believe that we are able to achieve agreement in most of the areas which will enable us to provide the Finance Ministers and Central Bank Governors with an opportunity to achieve the first Communique under South Africa’s Presidency,” Pieterse concluded.
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