G20 CONTINUES TO SEEK GROWTH AMID PANDEMIC

The G20 response under Saudi Arabia’s leadership this year is playing a major role in creating new pathways for global growth amid the pandemic.

In July, the Group of 20 of the world’s largest economies and other influential multilateral bodies, such as the International Monetary Fund and World Bank, met virtually under Saudi Arabia’s presidency to discuss the digital economy.

The digital economy has played an outsized role in ensuring the supply chain runs smoothly and businesses remain operational and able to supply consumers with vital products and services.

The COVID-19 crisis has also accelerated the issue of harnessing digital technologies to realise opportunities for all in the 21st century. That was already one of the key themes of the Saudi presidency at the start of the year.

But digitalisation also poses certain challenges including how to bridge digital divides, and develop policies that are agile and flexible. At the same time, authorities worldwide need to be mindful of anti-competitive practices, as well as issues related to privacy and advancing security, the G20 said.

“Digitalisation is also increasing the importance of boosting job opportunities, increasing market access for micro, small and medium enterprises (MSMEs),” the G20 said in a statement, noting that it supports fostering a non-discriminatory environment, protecting and empowering consumers and ensuring stability of supply chains.

Other issues discussed were developing human-centred approach to developing artificial intelligence (AI) and building smart cities, which creates nurturing environment for citizens to thrive.

AI is a special focus area given its ability to transform economies and create new innovations. The G20 is undertaking wide-ranging actions to encourage the responsible stewardship of trustworthy AI. These include encouraging research and development, but also ensuring security, safety, and accountability in its pursuit.

“Setting AI ethics principles that place emphasis on safeguarding human rights and promoting fairness across groups in society,” are vital for the growth of AI, G20 noted in its report. “Such principles can guide businesses and governments as they design, develop and deploy AI, and may incorporate both expert input and public consultation to build broad societal support.”

Developing smart cities will also be vital to reduce carbon footprint and pollution, and create efficiencies in the economy that can help individuals, businesses and governments.

“We recognise that smart mobility is one of the elements of a holistic approach to smart cities and communities, serving as a vital engine of innovation and investment, and that smart mobility data and technology solutions can address some of the challenges of smart cities and communities, potentially reducing inequality of access to cities’ services in an environmentally friendly way,” the G20 noted.

Focusing on many aspects of the digital economy is important, as the G20 expects global economic activity to contract this year due to COVID-19, with developing nations bearing the brunt of the crisis.

The group recently launched the Debt Service Suspension Initiative (DSSI), which could provide around USD 14 billion in immediate and critical liquidity relief by official bilateral creditors alone for the poorest nations in 2020.

“In response to COVID-19 pandemic, G20 countries have implemented unprecedented fiscal, monetary and financial stability measures and ensured that international financial institutions can provide critical support to developing and low-income countries,” said Mohammed Aljadaan, Saudi minister of finance.

“As the crisis remains unfolding, we will co-ordinate with G20 member countries to promote sustainable financing for developing countries, support the return of capital flows to emerging markets and developing countries, build resilience and promote more sustainable sources of financing.”

In a separate communique, G20 nations said they are also taking immediate and exceptional measures to launch unprecedented fiscal, monetary, and financial initiatives to mitigate the impact of the pandemic.

“Fiscal and monetary policies will continue operating in a complementary way for as long as required. Monetary policy continues to support economic activity and ensure price stability, consistent with central banks’ mandates,” the G20 nations said in a joint statement in July.

“We will continue to facilitate international trade, investment and to build resilience of supply chains to support growth, productivity, innovation, job creation and development. We will continue to take joint action to strengthen international co-operation and frameworks.”