G20 meet addresses global challenges

A two-day meeting of finance ministers and central bank governors from the Group of 20 leading economies ended on Tuesday, encouraging open trading mechanisms but not trade protectionism, though without a final communique.

G20 finance ministers noted the global economy is slowing down and adequate measures need to be taken by leading economies to address the slowing global economy issue, said Biswajit Dhar, distinguished professor at Council for Social Development.

The finance chiefs also encouraged the idea that certain countries should not resort to trade protectionism. There should be an open trading regime because trade is the engine of growth, Dhar said.

The meetings were organized into five thematic sessions covering Global Economy and Global Health, Sustainable Finance and Infrastructure, International Financial Architecture, International Taxation, and Financial Sector and Financial Inclusion.

There were intense discussions on global debt and vulnerabilities at the meeting, Indian Finance Minister Nirmala Sitharaman said. "We saw a definitive movement on developed countries delivering on a pledge to give $100 billion for climate finance this year," she said.

Another key issue where visible progress was made was on Central Bank Digital Currencies, or CBDCs.

Reserve Bank of India Governor Shaktikanta Das said there is a perceptible change in thinking around CBDC. "It is now recognized by a large number of nations, both G20 members as well as nations that are not members, that CBDC is an important aspect which needs to be looked at more seriously. As part of the FMCBG (Finance Ministers and Central Bank Governors) deliberations, the work done by the various agencies was taken on board."

Meanwhile, a bilateral meeting between Sitharaman and Chinese Finance Minister Liu Kun was held on Tuesday.

The two ministers discussed the state of their own economies, inflation and trade, and acknowledged the importance of a conducive business environment for growth and development.

Liu appreciated India's role in G20 and said a lot of results have been achieved so far, India's Finance Ministry said in a Twitter post.

China and India are two major emerging economies and they have certain structures in common, said Abhirup Sarkar, an Indian economist, adding there are important areas where the two countries can cooperate economically.

The outcome of this year's FMCBG meetings will be discussed at the 18th Heads of State and Government Summit of the G20 scheduled for September in New Delhi.

The writer is a freelance journalist for China Daily.