Sri Vijaya Puram: In a significant move aimed at stabilizing the global economy, G20 Finance Ministers and Central Bank Governors have agreed to strengthen multilateral cooperation to confront existing and emerging economic challenges. The agreement came at the close of a two-day high-level meeting held in Durban, South Africa.
The joint communique, signed on Friday, highlights a shared commitment to global economic coordination, despite the backdrop of rising geopolitical tensions, supply chain disruptions, and climate-linked disasters. Officials also acknowledged the growing financial vulnerabilities in developing nations, calling for inclusive reforms in global financial institutions.
South African Finance Minister Enoch Godongwana, reflecting on the tense but fruitful discussions, said, “It has been difficult in this environment,” acknowledging the complexity of reaching consensus amid ongoing global conflicts and trade tensions.
According to a statement from South Africa’s National Treasury, the ministers committed to strategies that would boost long-term economic growth. These include adopting growth-oriented macroeconomic policies, ensuring fiscal responsibility, encouraging both public and private investment, and preserving central bank autonomy to maintain price stability.
The communique also reaffirmed the importance of the World Trade Organisation (WTO) in advancing global trade, noting the urgent need for reform to ensure it remains responsive to modern challenges. Ministers agreed that the WTO’s functions require comprehensive improvement through innovative strategies, aligning it more closely with current economic realities.
A key theme in the discussions was the disproportionate debt burden on low- and middle-income countries. G20 members renewed their pledge to address this concern through mechanisms like the G20 Common Framework and emphasized enhancing the voice of developing countries in multilateral development banks and international financial bodies.
“Members expressed their commitment to addressing debt vulnerabilities in low- and middle-income countries,” the treasury noted, adding that the push for fairer representation in decision-making is crucial to ensuring a balanced global economic order.
The Durban meeting marks a pivotal moment in the G20’s ongoing efforts to act as a stabilizing force in a fragmented world economy. With countries grappling with the lingering effects of the pandemic, climate shocks, and global inflationary pressures, the call for united action signals a cautious but hopeful path forward.
The focus now shifts to implementation, where the effectiveness of these renewed commitments will be tested in the months ahead.
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