G20 Cannes Summit: Perspectives from Asia-Pacific

Representatives of 28 members of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) including Sri Lanka met in Bangkok on 11 and 12 October to discuss Asia-Pacific perspectives on the agenda of the G20 summit to be held in Cannes, France, on 3 and 4 November 2011.

Central Bank of Sri Lanka Governor Ajith Nivard Cabraal, who led the Sri Lankan team at this high level consultation, delivered a key note address at the session chaired by United Nations Under Secretary General and Executive Secretary of ESCAP Noeleen Heyzer.

Governor Cabraal also served as the Chairperson of the first consultation on the subject “Sustaining growth and development amid global uncertainties”.

The synopsis of the summaries received by the Chairpersons at the conclusion of the high level consultation, proposed the following action plan to be considered by the G20 countries.

Give high priority to find a comprehensive and durable solution to the euro-zone debt crisis to promote and sustain inclusive economic growth everywhere.

Implement expansionary policies and confidence restoration measures in the short term and formulate credible fiscal consolidation plans for the medium term.  Restore global confidence and send a clear and strong message that the achievement of key developmental objectives such as the Millennium Development Goals, narrowing development gaps and other policies to foster sustainable development have to occupy a central place in sustaining growth.  

Support developing countries on knowledge and technology transfer to increase agricultural productivity through North-South, South-South and triangular co-operation.

Implement appropriate measures for better regulation and supervision of commodity futures and derivatives markets to reduce the amplitude and short-term price fluctuations of agricultural products.

Implement existing multilateral and bilateral development efforts, agreed at G20 Seoul Summit and the G20 proposals for innovative financing mechanisms to fund assistance to developing countries.  Make further efforts to meet their official development assistance commitments and internationally intended trade concessions to the developing countries, especially the low-income countries.

Conduct impact assessments for reviewing and identifying country-specific issues and constraints before developing countries can adopt Basel III regulation standards.

Develop a system to foster co-ordination among regulators in the developed and developing worlds.

Submit credible proposals for the regulation of the shadow banking systems and to curb the excessive risk-taking tendencies that are instrumental in heightening volatility in the financial markets.

Improve the management of global liquidity through strengthening global financial safety nets and moving towards a diversified reserve system with strong surveillance over reserve issuer countries.

Place IMF and World Bank governance on a more democratic representation of developing countries to reflect the growing role of developing economies.

At the same time, the countries present were also of the view that the following measures should be undertaken by the ESCAP countries.

Continue its efforts to address critical developmental needs by increasing its domestic spending in areas such as infrastructure investment and social protection.

Invest part of their large foreign exchange reserves within the region, through developing a suitable regional financial architecture in the region.

Take measures to protect themselves from the consequences of disruptive fluctuations in the volume of global liquidity and to implement prudential measures to manage capital accounts as needed to deal with volatile capital flows.