G-20 Framework Working
Group (FWG) in its 3rd Meeting at Varanasi discusses the Current State
of the Global Economy as well as G-20 agenda on Inclusive Growth and
Reports on Strong, Sustainable and Balanced Growth & G-20 Enhanced
Structural Reform Agenda among others. The Ministry of Finance,
Government of India along with Reserve Bank of India (RBI) hosted the
two day 3rd Meeting of the G-20 Framework Working Group (FWG) in
Varanasi (UP) on 28th and 29th of March, 2017. The G-20 FWG is one of
the core Working Group of G-20 and deliberates on matters related to
global economy and on the policy co-ordination that is required between
the major economies of the world to face global economic challenges.
India co-chairs this group with Canada.
The meeting started with opening remarks by Shri. Dinesh Sharma, Special
Secretary (Economic Affairs), Ministry of Finance and Shri Rajeswar Rao,
Executive Director, RBI. Shri Sharma welcomed the delegates to Varanasi
and gave an overview of the agenda of the meeting. He emphasized that
though there has been recent positive momentum in global economic
growth, the challenge is to ensure that this momentum is maintained and
the benefits of growth are redistributed effectively and equitably. In
this context, he congratulated the FWG for formulating a timely agenda
that focuses on the growth challenges as well as on policy responses to
achieve inclusive growth. Shri Rajeswar Rao, in his Opening Remarks,
congratulated the FWG for the finalization of the Note on Economic
Resilience which details the guiding principles that members can use
while formulating economically resilient macro policies.
Following the Opening Remarks by the Indian hosts, Dr. Paul Samson, the
Canadian Co-chair of G-20 FWG thanked India for hosting the meeting. He
also drew the attention of the delegates on the three core areas of the
discussion in the meeting which were (a) the IMF work on G-20 mandate on
strong, sustainable and balanced growth; (b) the OECD work on G-20
structural reform agenda; and (c) G-20 agenda on inclusive growth.
Germany is presently holding the Presidency of G-20 this year. The
German Presidency (represented by Dr. Andreas Lux, German Ministry of
Finance and Dr. Felix Stefan Haupt, German Bundesbank) also thanked the
Indian hosts for the excellent arrangements made in Varanasi for
welcoming the FWG delegates. They also shared the aspiration of the
German Presidency with regard to the expected outcomes from the agenda
for FWG Varanasi.
The Opening Remark was followed by Session-I on “Global Economic
Conjuncture and Outlook” wherein countries discussed on the current
state of the global economy. Session-II was focused on the update from
IMF on the Report on Strong, Sustainable and Balanced Growth which is
currently under preparation. Session-III dealt with the draft OECD
Report on G-20 Enhanced Structural Reform Agenda. Sessions-IV and V were
devoted to inclusive growth agenda given the tremendous policy focus of
both advanced economies and emerging market economies on this agenda.
Session-IV focused on the updates from international organizations (that
is, IMF, OECD, ILO and World Bank) on their analysis of the impact of
inequality on economic growth and formulation of a G-20 framework on
inclusive growth. Session-V looked at the possibility of formulating an
effective indicator for inclusive growth and the challenges associate
therewith. The last session of the meeting was focused on discussing the
templates and timelines for 2017 Growth Strategy submissions by G-20
There were detailed interventions by members on the presentations made
by the international organizations. These would help in refining
strategies and tools to further calibrate individual policy responses.
Members, in general, expressed satisfaction at the progress achieved
during this meeting towards the goals set for this round.
The delegates were also provided a flavour of the cultural and social
ethos of Varanasi. A ride on River Ganges in the evening was followed by
a classical Kathak performance on 28th March, 2017.
The 4th Meeting of G-20 FWG Meeting under the German Presidency will be
held in Buenos Aires, Argentina.