The G-20 leaders on Sunday decided to continue with steps to sustain recovery of the COVID-hit economy and refrain from premature withdrawal of the support measures. Over 2021, global economic activity has been recovering at a solid pace, thanks to the roll-out of vaccines and continued policy support, said the G-20 declaration at the end of the summit meeting which among others was attended by Prime Minister Narendra Modi.
However, the recovery remains highly divergent across and within countries, and exposed to downside risks, in particular the possible spread of new variants of COVID-19 and uneven vaccination paces.
“We remain vigilant to the global challenges that are impacting on our economies, such as disruptions in supply chains. We will work together to monitor and address these issues as our economies recover and to support the stability of the global economy,” said the G20 Rome Leaders’ Declaration.
The G20 nations further said they will continue to sustain the recovery, avoiding any premature withdrawal of support measures, while preserving financial stability and long-term fiscal sustainability and safeguarding against downside risks and negative spill-overs.
The Leaders of the G20, met here on October 30th and 31st, to address today’s most pressing global challenges and to converge upon common efforts to recover better from the COVID19 crisis and enable sustainable and inclusive growth in our Countries and across the world.
The leaders also reiterated their commitment to strengthening long-term financial resilience and supporting inclusive growth, including through promoting sustainable capital flows, developing local currency capital markets and maintaining a strong and effective Global Financial Safety Net with a strong, quota-based, and adequately resourced IMF at its centre.
“We look forward to the forthcoming review of the IMF’s Institutional View on the liberalisation and management of capital flows, informed, among others, by the Integrated Policy Framework.
“We remain committed to revisiting the adequacy of IMF quotas and will continue the process of IMF governance reform under the 16th General Review of Quotas, including a new quota formula as a guide, by 15 December 2023,” the declaration said.
As per the declaration, the leaders also reaffirmed commitment to enhancing digital financial inclusion of vulnerable and underserved segments of society, including micro, small and medium-sized enterprises (MSMEs), carrying forward the work of the Global Partnership for Financial Inclusion (GPFI) and implementing the G20 2020 Financial Inclusion Action Plan.
The nations, the declaration said, affirmed the important role of open, fair, equitable, sustainable, nondiscriminatory and inclusive rules-based multilateral trade system in restoring growth, job creation and industrial productivity and promoting sustainable development, as well as our commitment to strengthen it with the WTO at its core.
“Recalling the Riyadh Initiative on the future of the WTO, we remain committed to working actively and constructively with all WTO Members to undertake the necessary reform of the WTO, improving all its functions, and we highlight the need to implement this commitment in practice through an inclusive and transparent approach including tackling the development issues,” the G20 nations said.
They will also support reaching a meaningful WTO agreement on harmful fisheries subsidies by the WTO 12th Ministerial Conference (MC12), in line with the SDG 14.6, and we welcome the ongoing work on agriculture.
The G-20 grouping comprises developed and developing nations.