G20 must forge global economic synergy

Never before has a G20 summit faced such diverse and gruelling challenge as the September 4-5 Hangzhou meet encounters. Themed aptly as ‘Towards an Innovative, Invigorated, Interconnected and Inclusive World Economy’, the world is eagerly awaiting the event, hoping it delivers something beyond just pledges — A strategy towards an effective global economic synergy.
The meeting comes at a very difficult time. The sluggish global growth is crushing the middle-class and the poor as monetary and fiscal policies are going haywire. Even though the world leaders talk of a coordinated effort to shore up the global economy, they are going in divergent directions. While the US is looking to hike interest rate, Japan wants to go for fresh easing. Germany is resisting fiscal stimulus and Britain is grappling with Brexit fallout, which is fuelling anti-globalization sentiments. Despite the rhetoric of joint push to world economy, free trade agreements are falling apart. Ironies abound and they can’t be missed.
It is against such a backdrop that the G20 summit takes place. The biggest responsibility of the meeting would, therefore, be to jolt the world’s economic policymakers into action and make them see the common interest: rooting out the economic malaise through structural reforms. This is what was envisaged in the 2030 agenda for sustainable development eight years back. But on the way, the world lost its way and it is because of myopia and isolated efforts that we stand where we are today. Crucial time has been lost, but the international community can still avert the impending economic catastrophe if it join hands.
The G20 has to put global economic unity on top of everything to bring about a breakthrough. Development strategies have to focus on innovative methods and inclusiveness. Consistent innovation will help tackle the climate and energy challenges and put us on the path of zero-carbon economy. Economic activity has also to be boosted in neglected regions of Africa and less developed areas of South America and Asia. Trade and investment policies have to see the long-term benefits and guard against protectionism. People have to be sensitized about the advantages of a globalized world regime that can counter market volatility through reforms. It is mutual trust that the G20 summit has to inject into the leaders, which will then make them strike a consensus in the most contentious issues: be it overcapacity, investor-government disputes or transparency in free trade deals.
The world is one family. It’s high time that the international community realizes the need to set up a development model that connects the world through sustainable economic growth. This model should not just aim at economic prosperity but focus on happiness index and improve quality of life of world’s people. A global economic governance that unites the nations through balanced monetary measures and strengthens the global financial system needs to be forged. We need qualitative progress that aims at sustainability and global wellbeing.
It’s certainly an acid test for the G20 and all eyes are on it now. Hope the meet makes the world move forward with economic wisdom.