The G20: Initiatives to face global challenges

©Government of Mexico

We live in a globalised world where a significant event occurring today in a given place has direct and immediate consequences in the rest of the world. Hunger in Africa and the political turmoil in the Maghreb have translated into new migration flows towards countries of greater relative development. 

Unemployment in the latter means fewer imports and, in consequence, diminished growth outlooks in emerging economies. The current energy trends contribute to global warming, which not only affects our economies but also our health and even threatens our survival as a species.

Undoubtedly, we must either accept our shared future, or we will have none. In the wise words of Gro Harlem Brundtland, a quarter of a century ago: “We live in an era in the history of nations when there is greater need than ever for co-ordinated political action and responsibility”. This is what Mexico has been referring to as coresponsibility in international relations.

In accordance with this sense of co-responsibility, Mexico has been a committed participant in some of the most important global forums, such as the UN Security Council or the Conferences on Climate Change, the 16th edition of which was celebrated in Cancun, Mexico, towards the end of 2010. For this very reason, Mexico now chairs the work of the Group of 20, or G20, aiming to set the stage for a new global economic order through the coordination of macroeconomic policies that provide stability to the markets, guarantee liquidity flows, strengthen the recovery of the global economy and ensure economic growth and well-being in every country of the world.

Mexico has sought to balance the G20 agenda to make sure that addressing urgent matters does not detract from other equally, if not more, important issues in the medium and long term. The five priorities that Mexico has established this year for the work of the G20 are:

1. Economic stabilisation and structural reforms for growth and employment. We believe that the recovery of confidence in the markets is essential to restore sustainable growth, and it must be complemented by a joint commitment to carry out the necessary structural reforms.

2. Strengthening the financial systems and fostering financial inclusion to promote economic growth. Current instability of the markets in developing countries shows the need to improve the current regulatory framework. At the same time, we must further inclusion, financial education and consumer protection as effective ways of promoting growth, reducing poverty and fostering the responsible use of banking services.

3. Improving the international financial architecture. It is imperative to continue strengthening and reforming the international financial institutions such as the IMF, the World Bank and the Financial Stability Board.

4. Enhancing food security and addressing commodity price volatility. The fluctuations in the food prices affect the most impoverished families. Therefore, Mexico promotes food security through the strengthening of production and productivity of the food and agriculture sector at the global level in a sustainable and inclusive way.

5. Promoting green growth–a type of economic growth based on strategies to improve productivity, foster innovation and research, and create new business opportunities and markets that are sustainable in nature. This is a horizontal theme in the G20 agenda, present in other areas such as energy, food security, employment opportunities and training, infrastructure, international co-operation for development and climate change financing.

Mexico aims for the G20 to face some of the most pressing challenges in terms of global governance more efficiently, and for it to be able to adopt measures not only to face the current crises, but also to address structural challenges and thus prevent new crises such as the one experienced in 2008. In order to accomplish this task, we are working with governments not currently represented in the G20, as well as with representatives of civil society, the private sector, labour unions, academia, youth, parliamentarians and global and regional international organisations.

I am convinced that the next G20 summit that will take place in Los Cabos, Mexico, in June will contribute to shape a new global economic order that will stimulate the economic growth of our nations, while promoting the greater well-being of each and every sector in our societies.

Visit www.g20.org

©OECD Observer No 290-291, Q1-Q2 2012




Economic data

E-Newsletter

Stay up-to-date with the latest news from the OECD by signing up for our e-newsletter :

Twitter feed

Suscribe now

<b>Subscribe now!</b>

To receive your exclusive print editions delivered to you directly


Online edition
Previous editions

Don't miss

  • Is technological progress slowing down. Is it speeding up? At the OECD, we believe the research from our Future of ‪Productivity‬ project helps to resolve this paradox.
  • An employee prepares breakfast in front of the Eiffel tower at the Parisian luxury hotel Le Plaza Athenee, France July 30, 2015. Nowhere in the world has more accommodation available on Airbnb than Paris. Now the home-sharing website that has transformed budget travel to the French capital is giving its super-deluxe hotels a fright too (©REUTERS/Stephane Mahe).
  • Is inequality bad for growth? That redistribution boosts economies is not established by the evidence says FT economics editor Chris Giles. Read more on www.ft.com.
  • On 19-20 September, come and visit the OECD to learn more about our home and our work.
  • Low interest rates here to stay for half a century, says OECD director Adrian Blundell-Wignall.
  • OECD speak on support it will offer to Greek
  • Bill Gates visited the OECD on 26 June. He met with the Secretary-General Angel Gurría to discuss areas of collaboration with his foundation and participated at a briefing session on official development assistance modernisation with OECD experts.
  • The People’s Republic of China decided to enhance longstanding collaboration with the OECD and to join the OECD Development Centre, in a historic visit by Chinese Premier Li Keqiang on 1 July to the OECD in Paris.
  • In order to face global warming, Asia needs at least $40 billion per year, derived from both the public and private sector. Read how to bridge the climate financing gap on the Asian Bank of Development's website.
  • One dollar in aid for trade generates eight dollars in extra trade for all developing countries and 20 dollars for low-income countries. Read OECD Secretary General's post on the newly released Aid for Trade at a glance 2015.
  • Catherine Mann, OECD Chief Economist, explains on Bloomberg why "too much bank lending can slow economic growth".
  • Interested in a career in Paris at the OECD? The OECD is a major international organisation, with a mission to build better policies for better lives. With our hub based in one of the world's global cities and offices across continents, find out more at www.oecd.org/careers .
  • Come va la vita in Italia? How's life in Italy? The OECD Better Life Index is an interactive online platform in seven languages that goes beyond GDP by offering important insights into measuring well-being and quality of life. Try it for yourself!
  • The IMF calls for a decisive energy subsidy reform in order to use the freed resources to meet critical public spending needs and to reduce pollution ahead of the Paris climate change summit.
  • Have a look at these posters representing a world without fundamental rights at work – including child labour, forced labour and inequality. Read more about this ILO image competition here.
  • Africa vs profit shifting African countries heavily rely on the income generated by multinationals’ taxation, which can represent as much as 88% of a country’s tax base. Little wonder Africa is involved in the OECD’s initiative to address tax base erosion caused by profit shifting, known as BEPS. The need to strengthen inter-governmental co-operation to curb cross-border tax losses was reaffirmed at the Africa Tax Administration Forum (ATAF) in Sandton on 21 April 2015.
  • Africa v. profit shifting
  • After three decades of extraordinary economic development, China is shifting to a slower and more sustainable growth path, according to the OECD's latest Economic Survey of China.
  • In pursuit of the American Dream.

Most Popular Articles

Poll

What issue are you most concerned about in 2015?

Euro crisis
Unemployment
Global warming
International conflict
Other

OECD Insights Blog

NOTE: All signed articles in the OECD Observer express the opinions of the authors
and do not necessarily represent the official views of OECD member countries.

All rights reserved. OECD 2015