B20 offers G20 blueprint for economic and jobs growth
B20 leaders at the summit in Sydney. Source: b20australia.info
Friday 18 July 2014
- B20 to deliver 20 mutually reinforcing recommendations to G20
- If adopted, G20 would exceed two per cent additional growth target
- Failure of G20 to commit to reforms will negatively impact global living standards
- Value of trade implementing recommendations akin to adding a Germany to global economy
- Closing infrastructure gap could create 100 million jobs and generate $6 trillion
The international business community has laid out a blueprint for G20 leaders to promote global economic growth and employment outcomes and make the global economy more resilient to deal with future shocks.
Mr Richard Goyder, B20 Australia Chair and Managing Director and CEO of Wesfarmers, said the B20 Australia Summit had brought together nearly 400 business leaders and policymakers to finalise and prioritise a set of recommendations for G20 leaders that drive growth and create jobs.
“The result of this work is a set of 20 mutually reinforcing recommendations for action by G20 leaders,” Mr Goyder said. “Our analysis suggests that if these were adopted, the G20 would not only meet, but exceed the two per cent additional growth target set by G20 Finance Ministers in February.”
The G20 has set a target of lifting collective GDP by two per cent above the trajectory implied by current policies over the next five years – worth more than $2 trillion in real terms and tens of millions of jobs.
“To meet the target, G20 countries must commit collectively to implement unilateral structural reforms that boost employment and prospects for diversified and sustained growth – more trade, better infrastructure, safely regulated, accessible and affordable finance, and human capital in the right place, at the right time with the right skills.”
Mr Goyder said the B20 had concentrated on identifying the major impediments to growth through five groups focused on the core economic drivers of trade, infrastructure, human capital, finance and transparency.
“What we are recommending is mostly new structural reform measures that would deliver on the G20 growth target and form a blueprint for sustainable economic growth in the medium term,” Mr Goyder said
“Private sector investment is a prerequisite for sustained and inclusive economic growth. It is essential to job creation and higher standards of living. We are asking governments to remove barriers and impediments to growth.
“If G20 countries commit to these reforms, the gains will be large, but a failure by any of the G20 countries to commit will mean a significant opportunity cost.”
B20 recommendations are drawn from four common themes that are critical to success in a global economy:
- Structural flexibility
- Free movement across borders of goods, services, labour and capital
- Consistent and effective regulation
- Integrity and credibility in commerce
“We need policies that ensure greater structural flexibility and freedom of movement across borders of goods, services, labour and capital within an effective regulatory framework which promotes transparency in commerce.
“The recommendations are specific, practical and actionable and if implemented will lift inclusive growth, boost participation, create jobs and build the resilience of the global economy.
“The B20 has five messages for policy makers:
- The urgent goal is growth and jobs to lift living standards around the world. There is no room for complacency
- The G20 is the right forum to pursue this goal, because it is the only forum capable of achieving the coordinated action necessary to drive and shape the global economy
- The G20 has set a realistic and necessary growth target, but now must focus on how that target will be achieved
- B20 has identified policy principles to meet the target by focussing on the major impediments to growth and jobs creation
- The B20 recommendations require collective agreement by the G20 for unilateral action by each member country
“The business community is committed to working with governments to achieve these outcomes, including through dialogue with governments and communities,” Mr Goyder said.
The B20 will deliver the recommendations to the G20 presidency through the Prime Minister, Treasurer and Minister for Trade and Investment this afternoon.
For more information on the B20, visit http://www.b20australia.info
For more information on the G20, visit https://www.g20.org/