The big moneymakers of the G20, meeting in India, left on Tuesday without having managed to adopt a joint declaration, in particular because of differences on the conflict in Ukraine, while several members of this economic forum condemned the Russian decision to end to the grain agreement.
The G20 financial leaders — finance ministers and central bank governors — failed to agree on a joint statement “because[ils n’ont] still no common language on the war between Russia and Ukraine,” but progress has been made on key issues, Indian Finance Minister Nirmala Sitharaman, who chaired the meeting in Gandhinagar, told reporters. in the Indian state of Gujarat.
Several economies remain in trouble after the double shock of the coronavirus pandemic and the consequences of the Russian invasion of Ukraine, which affects the prices of fuels and raw materials. Climate change also worsens the situation of the poorest countries and those least able to overcome the situation.
The G20 discussions ended the day after Moscow refused to extend the agreement authorizing Ukrainian grain exports through the Black Sea. A decision condemned by “several members” of the G20, assured Mme Sitharaman.
South African Finance Minister Enoch Godongwana expressed concern about the likely repercussions on food prices, which would “heavily” affect the poorest countries.
The United Nations, outraged by the Russian position, has warned that millions of the world’s poorest people are “going [en] pay the price”.
Any discussion of Ukraine remains delicate for India, which has not condemned the Russian invasion but is also a member of the informal ‘Quad’ alliance, along with Australia, the United States and Japan. .
The President of the World Bank (WB), Ajay Banga, expressed alarm on Tuesday at a dangerous split in the world economy, in the absence of progress in the fight against poverty.
“What keeps me awake at night is the mistrust that silently divides the north and south of the planet at a time when we need to unite,” Banga told ministers during their talks. on international financial structures.
“The frustration of the countries of the South is understandable. In many ways, they are paying the price for our prosperity,” he added.
“The Reign of Poverty”
“While they should be on the rise, they fear that the promised resources will be diverted to the benefit of the reconstruction of Ukraine,” continued Mr. Banga.
These countries “feel that energy rules are not applied uniformly, which limits ambition, and they fear that the reign of poverty will break up a new generation”, he warned. .
The WB is working to increase its lending capacity, including by raising hybrid capital from shareholders, but it said the future economy cannot be built on expansion at the expense of the environment.
“The simple truth is: we can’t endure another period of emissions-intensive growth” CO2, hammered Mr. Banga. An American of Indian origin, he took office as head of the WB last month, appointed by US President Joe Biden.
According to the United States, efforts to reform multilateral donors, such as the WB and regional institutions, could unlock $200 billion over the next decade.
Debt restructuring deals for low-income countries have been high on the agenda of the group of twenty major economies, but talks have made little progress, officials say.
China, the world’s second-biggest economy, a major financial backer to several struggling, low-income countries in Asia and Africa, has so far opposed a common multilateral agreement on the issue.
“We were able to advance the issue of over-indebtedness, particularly in the countries of the South, and propose a quick and effective solution,” said Nirmala Sitharaman.
More than half of low-income countries are in or near debt distress, twice as many as in 2015, according to US Treasury Secretary Janet Yellen.
G20 discussions also focused on reforming multilateral development banks, regulating cryptocurrencies, and facilitating access to finance to mitigate and adapt to climate change.