G20 Finance Ministers and Central Bank Governors Meet
Source: Live Mint
GS III: Economy
Overview
- News in Brief
- What are the outcomes of the G20 Finance Ministers and Central Bank Governors Meet?
- Explaining the concept of
Why in the News?
The G20 Finance Ministers and Central Bank Governors (FMCBG) meeting under the Indian Presidency was held on 12-13 October 2023 in Marrakech, Morocco, on the sidelines of the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG).
- After the previous meetings in Bengaluru, Washington DC and Gandhinagar, Gujarat, this was the fourth and final meeting of the G20 Finance Ministers and Central Bank Governors under the Indian Presidency.
News in Brief
- The finance ministers and central bank governors of G20 nations have adopted a roadmap to regulate crypto assets, as proposed by the Financial Stability Board (FSB) and the International Monetary Fund (IMF), at their meeting in Marrakesh, Morocco.
- Over 370 delegates, including Finance Ministers and Central Bank Governors from G20 member countries, Invitee Countries, and Heads of various International Organisations participated in the meeting.
- The meeting was organised in two sessions covering the global economy, strengthening MDBs and crypto assets.
- Members discussed the priority of strengthening Multilateral Development Banks (MDBs) to address the global challenges of the 21st century.
- India has successfully demonstrated the success and potential of Digital Public Infrastructure (DPI) in achieving developmental goals.
What are the outcomes of the G20 Finance Ministers and Central Bank Governors Meet?
- Planet, People, Peace and Prosperity
- Immense human suffering and the adverse impact of wars and conflicts around the world.
- All states must act in a manner consistent with the Purposes and Principles of the UN Charter in its entirety.
- The use or threat of use of nuclear weapons is inadmissible.
- These issues can have significant consequences for the global economy.
- Global Economy
- Headline inflation rates have eased in several countries, risks remain and core inflation is elevated and persistent.
- To address geoeconomic tensions, extreme weather events, and natural disasters need for well-calibrated monetary, fiscal, financial, and structural policies is required.
- Strengthening Multilateral Development Banks
- Multilateral Development Banks (MDBs) to address the global challenges of the 21st century.
- Continued focus on addressing the development needs of low and middle-income countries.
- MDBs by enhancing operating models, improving responsiveness and accessibility, and substantially increasing financing capacity to maximise development impact
- An increase in MDBs’ annual spending by $3 trillion by 2030, including $1.8 trillion for additional climate action, and $1.2 trillion to realise other sustainable development goals (SDGs).
- MDBs to enhance private capital mobilization through supporting enabling conditions, innovative risk-sharing instruments and new partnerships to maximize their development impact.
- Managing global debt vulnerabilities
- Stand by all the commitments made in the Common Framework for Debt Treatments beyond the DSSI.
- Advanced work towards finalization of the MoU on the agreed debt treatment for Zambia, Ghana, Ethiopia, Sri Lanka.
- Infrastructure
- We endorse the G20/World Bank report on Enablers of Inclusive Cities: Enhancing Access to Services and Opportunities
- It analyses how inclusivity varies across cities globally and presents a policy compass for various stakeholders to better plan, connect, and finance the delivery of urban infrastructure services.
- Sustainable Finance
- Implementation Mechanism to promote the effective implementation of the G20 Sustainable Finance Technical Assistance Action Plan.
- Compendia of Case Studies for Financing Sustainable Development Goals and NonPricing Policy Levers to support sustainable investment.
- Further efforts to advance the Roadmap’s recommended actions will scale up sustainable finance, including, among others, the implementation of the Transition Finance Framework.
- Crypto-assets
- Adopt the Roadmap proposed in the Synthesis Paper as a G20 Roadmap on Crypto Assets.
- IMF and FSB to provide regular and structured updates on the progress of implementation of the G20 Roadmap on Crypto Assets.
Explaining the concept of
- G20 New Delhi Leaders’ Declaration
- World leaders, meeting in the Indian capital for the annual G20 summit, reached an agreement by consensus on the declaration.
- It covers issues ranging from climate change and green growth to gender equality and countering terrorism.
- Multilateral Development Banks (MDBs)
- Multilateral development banks (MDBs) originated in the aftermath of World War II.
- MDBs fund infrastructure, energy, education, and environmental sustainability in developing countries.
- Examples of MDB are the World Bank, Asian Development Bank, Asian Infrastructure Investment Bank (AIIB), International Bank for Reconstruction and Development, World Bank Group, European Investment Bank, Islamic Development Bank etc.
- G20 Independent Expert Group (IEG)
- As part of its G20 Presidency, India has established an Independent Expert Group (IEG).
- The group aims to provide recommendations for strengthening Multilateral Development Banks (MDBs).
- The Indian Council for Research on International Economic Relations (ICRIER, Delhi), along with the Centre for Global Development (CGD, Washington DC), has been appointed as the Secretariat for this Group.
- G20 Sustainable Finance Technical Assistance Action Plan
- Aims to mobilise sustainable finance to help ensure global growth and stability.
- Promote the transition towards greener, more resilient and inclusive societies and economies.
- The main purpose of the Group is to advance international work to help scale up private and public sustainable finance
- It will accelerate the implementation of the Paris Agreement and 2030 Agenda for Sustainable Development.
- The G20 Sustainable Finance Roadmap, as finalized in 2021, is the core around which the SFWG functions and takes up future work.
- Crypto-assets: Policy and Regulation (G20)
- Closely monitor the risks of the fast-paced developments in the cryptoasset ecosystem.
- Authorities should apply comprehensive and effective regulation, supervision, and oversight to crypto-asset activities and markets.
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