Introduction section G20 Italian Presidency
G20 Italian Presidency
The G20 Italian Presidency officially started on 1 December 2020. It is the first time Italy is called upon to lead this international forum. A formidable challenge, in a year where the global economy needs to recover after the devastating impact brought about by the Covid-19 crisis.
G20 members represent together some 80% of the global economy. The Group was founded in 1999 as forum for G20 Finance Ministers and Central Bank Governors to discuss measures safeguarding international financial stability.
The 2007-2008 financial crisis and the risks to global financial stability transformed this gathering into a Head of States and Governments Summit. The first official meeting in this new format was held in November 2008, when G20 Leaders met to set a common response to the financial crisis and the resulting economic recession.
The G20 groups the G7 countries (Canada, France, Germany, Italy, Japan, The United Kingdom and The United States of America), plus: Argentina, Australia, Brazil, China, India, Indonesia, Mexico, Russia, Turkey, Saudi Arabia, South Africa, South Korea and the European Union. They are joined by some international organizations, namely: the International Monetary Fund (IMF), the World Bank (WB), the Organisation for Economic Co-operation and Development (OECD), the Financial Stability Board (FSB) and the United Nations (UN). Each year, a selected number of guest members is invited to take part.
Chaired by the rotating presidency, Finance Ministers and Central Bank Governors meet regularly in the Finance Track, to set the ground for the Leaders’ Summit.
The Finance Track
The Finance Track gathers G20 Finance Ministers and Central Bank Governors to discuss global economic, fiscal and monetary issues. Although throughout the years G20 discussions expanded their area of interest, economic issues remain at the core of its work.
The Finance Track is structured into six separate working groups, dedicated to sustainable and inclusive growth, international financial architecture, infrastructure, sustainable finance, financial inclusion and Africa.
The G20 Italian Presidency Finance Track objectives
The vision proposed by the Italian Presidency will be structured on three pillars:
- People: All policy actions will be centred on people, so that no one is left behind. This means tackling inequalities and promoting equal opportunities in health, education, employment and human development, starting by the most vulnerable groups.
- Planet: To build more resilient societies, we cannot underestimate the risks our planet is facing. Developing a safer and more sustainable world requires restoring the balance between people and nature.
- Prosperity: Global growth should be seen as a tool to ensure prosperity for all. New technologies and the digital transformation are formidable drivers of prosperity and better quality of life.
Within this framework, the 2021 Finance Track will aim to bridge efforts to sustain the recovery with the development of long-term strategies to promote and accompany the transformation towards greener, more digital and inclusive societies.
Continuing the work on these issues carried on under the Saudi and previous Presidencies, the Finance Track will work to guarantee:
- health as a global common good;
- an international environment conducive to investment and growth;
- global financial stability and enhance financial inclusion;
- a support to vulnerable economies and strengthen the international financial architecture;
- a fairer and more transparent international tax system;
- improved living conditions for all while protecting our planet.
Framework Working Group (Fwg)
The Framework Working Group (FWG) monitors the evolution of the global economic outlook, while coordinating policies aimed at underpinning a strong, sustainable, balanced, and inclusive growth. In the wake of the crisis caused by the pandemic, the primary goal of the FWG is to advance economic policy proposals to sustain the global recovery.
International Financial Architecture Working Group (Ifa WG)
The International Financial Architecture (IFA) Working Group works to enhance stability and cohesion of the international financial system. It addresses the challenges related to debt sustainability and transparency; strengthening global financial safety nets; volatile capital flows and associated risks; financing for development in low-income countries; coordination between international financial institutions, including multilateral development banks.
Infrastructure Working Group (Iwg)
The Infrastructure Working Group (IWG) advises on policies to improve preparation, financing and management of quality infrastructure investments to secure the provision of inclusive, sustainable and resilient basic infrastructure services to all. The Group aims to tackle the persistent gap in infrastructure investment, also by promoting them as an asset class as to stimulate private sector involvement.
Global Partnership for Financial Inclusion
In 2010, the Global Partnership for Financial Inclusion was created to advance financial inclusion globally as a mean of increasing well-being and achieving a sustainable and inclusive growth. The focus of its action is to enhance the access to, and the use of, responsible formal financial services – also through digital means – for families and businesses. It also helps to promote an adequate financial education and to strengthen financial consumer protection.
Sustainable Finance Working Group
The Sustainable Finance Working Group (SFWG) aims to mobilize sustainable finance as a way of ensuring global growth and stability and promoting the transitions towards greener, more resilient and inclusive societies and economies. The Group is tasked to identify institutional and market barriers to sustainable finance and to develop options to overcome such barriers, and to contribute to a better alignment of the international financial system to the objectives of the 2030 Agenda and the Paris Agreement.
Africa Advisory Group
The Africa Advisory Group (AAG) is responsible, since 2017, for leading the G20 Compact with Africa, with the aim of improving the environment for private investment in African countries and fostering growth and sustainable development.