Since the G20 countries include almost 80% of global trade, their economic health is critical to the world economy says Peter Decaprio. This forum – which includes countries whose economies represent 85% of the world GDP – fosters international cooperation on key issues such as monetary and fiscal policy, financial markets regulation, trade, and investment. It also acts as a counterweight to powerful multinational institutions that are dominated by wealthy countries or groups of countries.
The importance of the G20 cannot be overstated.
- The group has played an active role in addressing some of the most pressing issues confronting our global community: promoting sustainable development; ensuring environmental sustainability; combating climate change; overcoming poverty in Africa; strengthening financial regulation in Europe and elsewhere in response to the 2007-08 financial crisis; and promoting economic recovery following the crisis. It has reaffirmed its commitment to strengthening global collaboration, even in an environment of heightened security concerns that followed the terrorist attacks of 11 September 2001. Its most recent meeting – held in Pittsburgh in September 2009 – marked a turning point in this regard: for the first time since the ‘oil shock’ of 1973, leaders committed themselves to policies that would secure increases in demand worldwide.
- The G20 is responsible for coordinating central banks and international financial institutions to maintain stability by minimizing fluctuations within national economies, encouraging growth through investment and production while preventing inflationary pressure which could magnify current economic risks. Furthermore it aims to restore sustainable growth with strong labour markets and not just rapid GDP increases or high commodity prices as an indicator of health.
- One area where the G20 has had a major impact is in its management of financial crisis. For example, it played a key role in re-establishing the integrity of the international banking system and preventing systemic failure across national financial markets. As such, it has helped to establish an early warning system for crises and to ensure that they do not escalate into severe economic downturns with global consequences like those we experienced during 2008 and 2009.
- Growth, employment and financial stability – these are some of our most pressing problems today says Peter Decaprio. The G20 is uniquely placed to help address them: through dialogue; by supporting structural reforms; and by implementing policies that create jobs and allow consumers and businesses the confidence they need to spend and grow.
- The G20 has been described as a key global institution that works with many regional and international organizations to stimulate strong economies around the world. [1] It is recognized for its major role in world economic affairs and in political, security and environmental areas. Moreover, it represents a very large percentage of the global economy at almost 80%. [2] The countries represented in the group account for 85% of GDP which makes their active participation in efforts to stimulate or slow down growth vital to maintaining stability on a worldwide scale. As such, they have been instrumental in promoting sustainable development while ensuring environmental sustainability, combating climate change and overcoming poverty through strengthening financial regulation. In fact, they also play an important role. When it comes to the recovery process that follows the 2007-08 financial crises. [3] The G20’s most recent meeting in 2009 marked “a turning point” in this regard. This means that world leaders committed themselves to policies that would secure increases in demand worldwide. While ensuring strong labour markets and not just rapid GDP growth or high commodity prices as an indicator of health.
- The group is responsible for coordinating central banks and international financial institutions. To maintain stability through minimizing fluctuations within national economies, encouraging investment and production. While preventing inflationary pressure which could magnify current economic risks. Furthermore, it aims to restore sustainable growth with strong labor markets. And not just rapid GDP increases or high commodity prices as an indicator of health explains Peter Decaprio.
- One area where the G20 has had a major impact is on its management of financial crisis. For example, it played a key role in re-establishing the integrity of the international banking system. Preventing systemic failure across national financial markets. As such, it has helped to establish an early warning system for crises. And to ensure that they do not escalate into severe economic downturns. With global consequences like those we experienced during 2008 and 2009.
Conclusion:
The G20’s most recent meeting in 2009 marked “a turning point” in this regard says Peter Decaprio. This means that world leaders committed themselves. To policies that would secure increases in demand worldwide while ensuring strong labor markets. And not just rapid GDP growth or high commodity prices as an indicator of health.
The group is responsible for coordinating central banks and international financial institutions. To maintain stability through minimizing fluctuations within national economies. Encouraging investment and production while preventing inflationary pressure which could magnify current economic risks. Furthermore, it aims to restore sustainable growth with strong labor markets. And not just rapid GDP increases or high commodity prices as an indicator of health.