G20 officials agree to strengthen multilateralism

Johannesburg, July 19 (IANS) The Group of Twenty (G20) members concluded the two-day Finance Ministers and Central Bank Governors meeting and agreed to strengthen multilateral cooperation to address existing and emerging risks to the global economy in a joint communique signed in Durban, South Africa.

The G20 officials on Friday, discussed the global challenges such as conflicts, geopolitical and trade tensions, disruptions to global supply chains, high debt levels, and frequent extreme weather events and natural disasters, according to the communique.

It said that the officials reaffirmed their commitment to global economic cooperation even amid complex negotiations. "It has been difficult in this environment," said South African Finance Minister Enoch Godongwana, describing the discussions that led to the ministers reaching a deal and signing a communique.

The South Africa's National Treasury said in a statement that the ministers agreed to bolster long-term growth potential by pursuing growth oriented macroeconomic policies, while building fiscal buffers, ensuring fiscal sustainability, encouraging public and private investments, undertaking productivity-enhancing reforms and safeguarding central bank independence to maintain price stability, Xinhua news agency reported.

"A renewed pledge was made to strengthen multilateral cooperation to address existing and emerging risks to the global economy and to recognize the importance of the World Trade Organisation (WTO) to advance trade issues and the agreed-upon rules in the WTO," the statement said.

The treasury statement said the G20 ministers and governors agreed that the WTO requires some comprehensive reform to improve all its functions, through innovative approaches, to be more relevant and responsive to today's realities.

They said that developing countries have high debt and debt servicing costs which needs to be addressed.

"Members expressed their commitment to addressing debt vulnerabilities in low- and middle-income countries and reaffirmed their commitment to further strengthen the implementation of the G20 Common Framework. Members also underscored the need for enhancing the representation and voice of developing countries in decision-making in multilateral development banks and other international economic and financial institutions," the treasury said in the statement.

--IANS

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