G20 Finance Track 18 Februari 2016 1
Background "the commitment to work together to establish an informal mechanism for dialogue among systemically important countries, within the framework of the Bretton Woods institutional system. (leaders' G7 Statement at their Cologne Summit on June 18, 1999) G20 Wider issues of developed economies and developing economies G7 Only issues related to G7 members (developed economies) G20 accounts for approximately 90 per cent of the World GDP, nearly 80 per cent of World trade and almost 2/3 of World Population
Background The Group of Twenty (G20) is the premier forum for international cooperation on the most important issues of the global economic and financial agenda. The G20 was formally established in September 1999 when finance ministers and central bank governors of seven major industrial countries (G7) met in Washington, D.C. The first meeting of the G20 Leaders took place in Washington, D.C., in November 2008, where the Leaders agreed to an action plan to stabilize the global economy and prevent future crises. The objectives of the G20 refer to: 1. Policy coordination between its members in order to achieve global economic stability, sustainable growth; 2. Promoting financial regulations that reduce risks and prevent future financial crises; 3. Modernizing international financial architecture. 3
G20 Members Argentina Australia Brazil Canada China European Union France Germany India Italy Indonesia Japan Mexico Russia Saudi Arabia South Africa South Korea Turkey United Kingdom United States 3
Decision Making Process in G20 Leaders Establish strategic goals of G20 Finance Ministers Establish priorities and adopt The G20 agreement Sherpa Establish priorities and adopt The G20 agreement Finance Deputies Formulate and establish agreed agenda Working Groups Discuss spesific agenda according to mandate of Leadres/ministers Working Groups Finance Track SherpaTrack 4
G20 Finance Track IFA- WG FWG IIWG Finance Deputies Finance Minister G20 Leaders GFSG CFSG
Progress on G20 Agenda (Washington, DC) Global financial crisis Framework for Strong, Sustainable and Balanced Growth (Toronto & Seoul) Economic global recovery Global development (Los Cabos) Euro zone crisis and new initiatives (financial inclusion, green growth, infrastructure) 2008 2009 2010 2011 2012 2013 (London & Pittsburgh) Global premier forum, replace G7 MDBs reforms New International Financial Architecture (Cannes) KTT Cannes Global imbalances and governance (St. Petersburg) Economic growth through: 1. Investment and Employment 2. Trust and transparency 3. Effective regulation 5
Indonesia s Role 1. Setting priorities in line with the agenda of strong, sustainable, balance growth (SSBG) for G20 credibility 2. Setting the President s priorities & support for G20 Presidency agenda In line with the latest global economic challenges Having direct national economic interests Being discussed or approved as G20 agendas 3. Strengthening communication with the G20 Presidency and supportive countries 4. National priority agenda challenge 6
Interconectivity Indonesia G20 Leader Summit Finance Track Sherpa Track Priorities of National Agenda 7
G20 China Presidency 2016 10
Finance Track Issues Global Economy Global economic development & key risk Mid to long term challenges to global economy Framework for Strong, sustanaible and Balanced Growth Supporting Aggregate Demand Structural Reform Trade and investment Inclusive growth Global imbalances Investment and Infrastructure Strengthening the role of MDBs Promoting global infrastructure connectivity Exploring diversified financing for infrastucture investment
Finance Track Issues International Financial Architecture IMF quota and governance Sovereign debt issue Capital flows Global Financial Safety Net (GFSN) Currency related issue surveillance Financial Sector Reform Financial regulation reform Global financial market infrastructure Financial inclusion International Tax Base Erosion and Profit Shifting (BEPS) Automatic Exchange of Information (AEoI)
Finance Track Issues Green Finance and Climate Finance Mobilize private capital for green investment by greening the global financial system Implementation the UNFCCC Anti-terrorist Financing
Does G20 Matter? As part of global policy decision making process Protection of national interest Mutual Assessment Process Sharing experience and knowledge
Thank You 15