G20 finance ministers meeting ends without consensus

On February 27, South Africa expressed disappointment when negotiations at the G20 Finance Ministers and Central Bank Governors Meeting, which South Africa hosted, ended without reaching a consensus.

The two-day meeting in Cape Town ended without a joint communique. However, a “chair’s summary” issued by the host country said participants “reiterated their commitment to fight protectionism”.

The summary added that the participating countries “supported a rules-based multilateral trading system that is non-discriminatory, fair, open, inclusive, equitable, sustainable and transparent,” using some of the words that the administration of US President Donald Trump has strongly opposed.

South Africa hopes to turn the G20 into a platform to pressure rich countries to do more to tackle climate change, provide more support for poorer countries' transition to green energy and reform a financial system that favors investment banks at the expense of poor sovereign states.

However, the talks were overshadowed by the absence of finance ministers from several key member states including the US, China, India and Japan and cuts in foreign aid by major economies such as the US and UK, amid rising geopolitical tensions.

South African Finance Minister Enoch Godongwana said he was “unhappy” that the G20 meeting failed to produce a joint communique. “I won’t name… any specific countries, but climate issues are becoming a challenge for the first time. I think there is a view that we should be prioritizing other things than the climate finance that is needed,” he said.

In an earlier press conference, Mr Godongwana said that despite differences in views on how to proceed with climate action, "there is a general consensus against protectionism and economic fragmentation".

Bank of Japan Governor Kazuo Ueda told reporters after the meeting that "the G20's common view is that if downside risks such as geopolitical tensions and supply chain disruptions occur, it could hinder the G20 's goal of achieving sustainable and balanced global growth."

On the global economy, the brief noted that growth patterns varied across economies and said various risks and trends were discussed. “Inflation has declined, supported by well-adjusted monetary policies and the unwinding of supply shocks, although progress has varied across countries,” the brief said.

The chair's summary has become a feature of multilateral meetings where participants fail to reach a formal consensus.

The G20 countries account for 85% of global gross domestic product and 75% of international trade. The group was formed in response to the 1999 Asian financial crisis to improve cooperation in addressing cross-border shocks.

Source: https://nhandan.vn/hoi-nghi-bo-truong-tai-chinh-g20-ket-thuc-ma-khong-dat-duoc-dong-thuan-post862197.html