Third meeting of G20 Finance Ministers and Central Bank Governors, which concluded on Tuesday, again failed to evolve a consensus on communique mainly because of stance of China and Russia. However, it did manage to make good developments on addressing debt vulnerabilities and strengthening Multilateral Development Bank (MDB).
Footnotes to Outcome Document and Chair’s summary highlighted why communique could not be issued. It was mentioned that while “China stated that the G20 FMCBG meeting is not the right forum to discuss geopolitical issues, Russia dissociated itself from the status of this document as a common outcome because of references”. .
Two paragraphs are related with Russia-Ukraine war and impact on global economy. Third paragraph says, “while global food and energy prices have fallen from their peak levels, the potential for high levels of volatility in food and energy markets remains, given the uncertainties in the global economy.”
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Finance Minister Nirmala Sitharaman said in a press conference that the reason for the chair statement was “because we still don’t have a common language on the Russia-Ukraine war”. She also said that the language describing the war had been drawn directly from last year’s G20 leaders’ summit declaration in Indonesia. “We don’t have the mandate to change that,” she said, adding that this was something the leaders would have to decide when they gather in the capital, New Delhi, for the main summit in September.
MDB Reforms
Meanwhile, the statement noted progress made on various accounts and one of them was MDB reforms. “A G20 roadmap for implementing the recommendations of the G20 Independent Review of MDBs’ capital adequacy frameworks (CAFs) has been developed. We endorse this roadmap and call for its ambitious implementation, within MDBs’ own governance frameworks while safeguarding their long-term financial sustainability, robust credit ratings and preferred creditor status,” it said.
On debt, the statement appreciated the formation of an official creditor committee for Ghana and look forward to an agreement on a debt treatment as soon as possible. “We also call for a swift conclusion of the debt treatment for Ethiopia. Beyond the Common Framework, we welcome all efforts for timely resolution of the debt situation of Sri Lanka, including the formation of the official creditor committee, and we call for the resolution as soon as possible,” it said.
Food security
Another key priority was food security. Sitharaman said that members raised Russia’s move to halt the deal that allowed grain to flow from Ukraine via the Black Sea to parts of Africa, the Middle East and Asia where high food prices have pushed more people into poverty.
“It is in that context today that several members condemned it, saying it shouldn’t have happened. Food passing through the Black Sea shouldn’t have been stopped or suspended,” she said. Further she added that members held wide discussions on the overall global economic outlook, paying specific attention to food and energy issues, climate financing and how to improve assistance to debt-distressed countries.
The Chair summary concluded by invoking Mahatma Gandhi, “with a vision reminiscent of Mahatma Gandhi’s teachings, we, the Finance Ministers and Central Bank Governors of G20 countries, envisage a future in which every nation thrives, prosperity is widely shared, and the well-being of humanity and the planet are harmoniously intertwined,” it said.