Highlighting that G20 nations are expected to play a bigger role in managing the world economy with two thirds of the world’s population and more than 80 per cent of global economic output, a Chinese news agency has said that the upcoming summit is a prime opportunity and has the potential to play a significant role in rebooting global growth.
A commentary in the Xinhua suggested that focus of the summit will be sustained global growth and China as a host nation will use the conference to spur dialogue among developed and developing countries around the potential to foster growth through reforms and innovation.
“While fiscal and monetary policies will address fluctuations in the short term, a longer-term strategy is needed to elevate the current malaise permeating the world economy. Reforms, structural adjustments in particular, must be incorporated into current policy frameworks to create fertile surroundings for growth,” it said.
The commentary mentioned that innovation will be key agenda for the first time and people of the world have high expectations for the summit.
However, for the success of the summit depends heavily on all G20 members working together, to implement, not just hash out, policies and measures.
“The summit offers a new starting position. However, the journey will be fraught with obstacles. To successfully address low growth, nations must put their faith in cooperation, implementation and, sometimes, painful reforms. Although, perhaps, a bitter pill to swallow, the results will speak for themselves,” it pointed out.
Stating that eight years after the global financial crisis, the recovery remains slow and fragile and current global economic growth environment is mediocre with rising unemployment, soaring debt, sluggish trade and investment and turbulent financial and commodity markets, the G20 summit could be the light at the end of the tunnel.
And for that longer-term strategy is needed to elevate the current malaise permeating the world economy.
“Reforms, structural adjustments in particular, must be incorporated into current policy frameworks to create fertile surroundings for growth,” it said.
The G20 summit will be held in China’s Hangzhou city from 4th-5th September.