The Global Governance Group (3G)[1] takes note of the outcomes of the G-20 Summit held in Los Cabos, Mexico. The 3G recognizes that global macroeconomic coordination is urgently needed to stabilize the international financial system. We call on the G-20 to act together decisively to strengthen the global economic recovery.
We welcome the commitment in the Los Cabos Summit Leaders’ Declaration towards greater transparency and more extensive outreach efforts. We look forward to the continued commitment of the G-20 to engage non-members as well as regional and international organizations, in particular the United Nations. In this respect, the 3G reiterates our call for the G-20 to regularize and institutionalize its interactions with the United Nations and other stakeholders, in line with the recommendations contained in the report by United Kingdom Prime Minister David Cameron which were endorsed by the G-20, as well as the proposals submitted by the 3G which aim to strengthen global governance. The 3G reiterates that global standard setting exercises are best placed in formal organizations with universal membership, in particular the United Nations. This would contribute to strengthening complementarity between the G-20, established multilateral organizations and other relevant stakeholders.
Concerning the outcomes of the Los Cabos Summit, we welcome the G-20’s commitment to coordinate their policies to stimulate global demand and restore confidence. We are encouraged by the G-20’s resolve to promote economic growth and create jobs. The Los Cabos Growth and Jobs Action Plan presents a comprehensive set of actions, which we hope will support growth, foster financial stability and create high-quality jobs. We also welcome the pledges made by the international community to boost the resources of the International Monetary Fund.
The 3G is especially encouraged that the Euro Area members of the G-20 have agreed to take the necessary steps to safeguard the integrity and stability of the area and move towards greater fiscal and economic integration. However, we note that significant risks remain within the Eurozone which, if not effectively dealt with, could dampen the global economic outlook. The 3G calls on the G-20 to continue to support efforts to stabilize the economic situation in the Euro Area. The 3G is convinced that more robust economic growth is necessary to simultaneously tackle the problems of unemployment and indebtedness. We therefore support the commitment made at the Los Cabos Summit to adopt all necessary policy measures to strengthen demand, support global growth and restore confidence.
The 3G also supports the commitments made at Los Cabos for reforming the financial sector and fostering financial inclusion, through the consistent implementation of agreed policies in order to support a stable and integrated global financial system and to prevent future crises.
We welcome the establishment of the Los Cabos Accountability Assessment Framework that establishes the procedures that will be followed when G-20 members report on their progress in implementing their policy commitments in fiscal, monetary, exchange rate, structural, trade, financial sector and development policies. We call upon all G-20 members to promptly report their progress on these issues, thereby strengthening their positive effects.
The 3G welcomes the continued commitment by the G-20 to open trade and investment, expand markets and resist protectionism in all its forms. We also welcome the G-20’s reaffirmation of the centrality of the World Trade Organisation in global trade governance and the importance of an open, rules-based multilateral trading system. We urge the G-20 to uphold its commitment to push for an ambitious and swift conclusion of the Doha Round negotiations. We should strengthen the role of the World Trade Organisation and reinforce the role of trade as the engine for growth and development.
We welcome the G-20’s efforts in meeting the challenges of sustainable development and its commitment to working with low-income countries to fulfil the Millennium Development Goals. It is imperative to continue to help developing countries sustain and strengthen their development through poverty eradication, promotion of green growth, improvement of food security and the fight against climate change. We encourage the G-20 to collaborate closely with the relevant international institutions to find solutions to these challenges.
We also welcome the steps being taken in respect of implementation of the G-20’s commitment on fossil fuel subsidy reform, including to explore a voluntary peer review mechanism and to have a dialogue with other groups already engaged in this work.
The 3G appreciates Mexico’s inclusive and consultative approach during its chairmanship of the G-20 in 2012 and looks forward to working closely with the Russian chair in 2013. We reiterate that the United Nations is the only global body with universal participation and unquestioned legitimacy. The actions and decisions of the G-20 should complement and strengthen the United Nations system.
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4 JULY 2012
[1] The 3G comprises the following Member States of the United Nations: Bahamas, Kingdom of Bahrain, Barbados, Botswana, Brunei Darussalam, Chile, Costa Rica, Republic of Finland, Guatemala, Jamaica, Kuwait, Principality of Liechtenstein, Grand Duchy of Luxembourg, Malaysia, Principality of Monaco, Montenegro, New Zealand, Panama, Peru, Republic of the Philippines, State of Qatar, Republic of Rwanda, Republic of San Marino, Republic of Senegal, Republic of Singapore, Republic of Slovenia, Switzerland, United Arab Emirates, Uruguay and Socialist Republic of Viet Nam.