A push for “bigger, better and more effective” multilateral development banks, a fully functional dispute settlement system under the World Trade Organisation, and a regulatory framework for crypto, debt resolution, financial inclusion and digital public infrastructure, were some of the key economic outcomes under the G20 New Delhi Leaders’ Declaration on Saturday. Terming it as a “people-centric, action-oriented and far-sighted” approach, Union Finance Minister Nirmala Sitharaman said the outcomes reflect a “shared path for all”, ensuring that no country, especially those from the Global South, is left behind. “It has been very clear in our mind that we should ensure that no one is left behind in our pursuit of global solutions, so we have endeavoured to support countries, especially those from the Global South to be an integral part of the decision-making processes. The G20 is a very diverse group, each country is at different milestones of economic development and their trajectory is also very different in achieving their developmental goals. So, through well-curated debates and careful assimilation of all the perspectives, the Indian Presidency has crafted solutions that resonate with each member, offering a shared path forward for all,” she said. Sitharaman said there was agreement among G20 nations for “better, bigger and more effective” MDBs, which she termed as necessary because of high developmental demands from all across the globe. “This is also going to contribute to enhancing the representation and voice of developing countries in decision making,” she said. There has been an agreement to boost the World Bank’s financing capacity and options will be explored to enhance the headroom of The International Bank for Reconstruction and Development (IBRD or World Bank) to support low-income and middle-income countries, she said. Sitharaman further said that the implementation of the capital adequacy framework and the measures thereby will potentially yield additional lending headroom of approximately US $200 billion over the next decade. The G20 independent export group on strengthening MDBs has already submitted its first volume of the report recommending a triple agenda to address eliminating extreme poverty, inclusive growth and the financing of global public goods along with a suggestion to constitute a ‘Global Challenges Funding’ mechanism for ‘Global Public Goods’. The second volume of the report will be taken up for discussion at the World Bank and IMF annual meetings in Marrakech in October. Today at the #G20 Leaders’ Summit #NewDelhiLeadersDeclaration is officially adopted. @PMOIndia @narendramodi’s emphasis on human-centric globalisation and our concerns of #GlobalSouth have found resonance and recognition. Thanking all G20 members for their cooperation and… — Nirmala Sitharaman (@nsitharaman) September 9, 2023 On the issue of common norms for crypto, Sitharaman said the global push for clearer policies on crypto assets has gained momentum under the Indian presidency and the global consensus is emerging on the same. “The Presidency will support the IMF (International Monetary Fund) and the FSB (Financial Stability Board). The FSB is also setting the contours of the framework for the globally coordinated approach to crypto assets,” she said. However, she said it’s up to the G20 membership to take the call whether it will be a ban or regulation and there will be further discussion on the IMF-FSB synthesis paper in the upcoming autumn meet of the World Bank-IMF. “…it’s for the G20 membership to take a call as to how it wants to move on it, a framework or a template. I don’t think we have given it a name as of yet, and also to now discuss whether it’s going to be a regulation only and not a ban,” she said. On Thursday, the International Monetary Fund (IMF) and the Financial Stability Board (FSB), released a policy paper, at the request of the Indian G20 Presidency, which recommended against an outright ban on crypto-assets. Instead, it suggested introducing a licensing regime for crypto-asset platforms bringing the asset under the fold of anti-money laundering and counter-terrorist financing standards. The Leaders’ Declaration also listed out the need to improve access to digital services and digital public infrastructure, and leverage digital transformation opportunities to boost sustainable and inclusive growth. Taking note of the significant role of digital public infrastructure in helping to advance financial inclusion, the Leaders’ Declaration has endorsed implementation of the Financial Inclusion Action Plan (FIAP), which provides “an action oriented and forward-looking roadmap for rapidly accelerating the financial inclusion of individuals and MSMEs, particularly vulnerable and underserved groups in the G20 countries and beyond”.
