Monthly newsletter about G20 published by Heinrich Böll Foundation

1. G20UPDATE E-NEWSLETTER
October 2010
CC-License by istockphoto.com
!
Topics covered in this Update
Policies, Politics and Must reads The development agenda of The G20 - Where to next?
Priorities A selection of documents, the Seoul G20 Summit A comment on the future
A summary of the initiative of speeches and papers that An outline of the process of the G20 in light of a
public, private and civil provide more in-debt within the G20 development broadening agenda and a
society actors leading up to information working group, including a proposal for dealing with
the Seoul Summit Page 4 critique on their agenda and this dilemma
Page 2-3 recommendations Page 8-9
Page 5-7
1

2. G20UPDATE office of the Heinrich Boell Foundation member states, the IMF, OECD and the
Policies, Politics and comments on the recent developments World Bank. No communiqué was
Priorities and discussions within the G20 around released at the conclusion of the
development. She will provide first hand deputies meeting. Finance ministers and
Global Governance actors
information from the so-called Civil central bank chiefs are set to meet in
gearing up for Seoul G20 Dialogue taking place from Korea on October 22 and 23 to finalize
October 14-15 in Seoul, which she was the agenda for the upcoming summit.
A summary report by Sandro able to attend.
Also in September, Korea invited
Gianella
Interestingly, Korea has African economic leaders and bankers
recently announced that it will invite to deepen partnerships and economic
The next G20 Summit in Seoul, five non-member states (Malawi, cooperation. Commentators have
South Korea, is only about a month Vietnam, Spain, Singapore and argued that this created the possibility of
away and global governance watch Ethiopia) to the summit. In order to Seoul helping the continent to
organizations from the public, private strengthen Africa’s representation at the “Africanize” the Korea development
and civil society sector are making clear upcoming summit, Malawi was invited model. The participants included 45
what they expect from the first meeting as the chair of the African Union and ministers from 35 African countries -
chaired by a non-G8 member country. Ethiopia as the chair of the new the largest African delegation to ever
The attention the international partnership for Africa’s Development. visit South Korea. This effort
media puts on the discussion about In addition, Vietnam is represented as exemplifies that as G20 host, Korea
China’s currency policy has once again the ASEAN chair and Singapore as seems to understand that the success of
put the G20 front and centre in global representative for the Global the summit to a large extent depends on
economic and financial policy making. Governance Group (3G). Jinho Song of whether the views of non-G20 countries
French finance minister Christine GCAP Korea applauded this are reflected. However, these
Lagarde has also entered the debate development, saying that “fighting attempts are still neither
with a recent speech at the Carnegie poverty will be near the top of the institutionalized nor formalized.
Endowment in Washington on the agenda when the group meets in Moreover, the Korean government has
French G20 agenda regarding currency November and Africa must be at the reached out to the think tank
policies. table for this discussion.” community by co-organizing the G20
As mentioned above, all interested Seoul International Symposium under
“Fighting poverty will be near the members in the international
top of the agenda when the group the theme “from crisis committee to
community are preparing for the global steering committee” with the
meets in November and Africa must upcoming summit and the following Korean Development Institute and the
be at the table for this discussion” paragraphs will outline several of the Brookings Institution on September
Jinho Song (GCAP Korea)
most important meetings and 28-29.
developments in a chronological order. Probably most important to the
On September 4-5, the G20 topic of this edition of the newsletter,
However, rather then focusing on Deputies Meeting was held in Gwangju, on October 13 the official G20 high-
this particular debate, this version of the Korea to discuss the main agenda for level development conference will take
G20 Update will focus on the fact that the G20 Seoul Summit. (A Korea-FSB place in Seoul. In the words of the
South Korea has brought the issue of Financial Reform Conference on chairman of the presidential committee
international development on the emerging markets took place just days for the G20 Seoul Summit, Il SaKong,
agenda, look at the consequences of a before, many of the documents can be “the conference will serve not only to
possible agenda overload for the G20 accessed online.) Since the Toronto facilitate the exchange of views on key
as a whole, as well as critically assess the Summit in June 2010, this was the first development issues, but also to generate
balance of representation from meeting of high-level officials from G20 international public interest in the
civil society and the business
sector. It is clear that facilitating
growth in developing and emerging
markets and the idea of global financial
safety nets are issues that the Korean
government feels particularly strong
about. Lim Won-Hyuk, director of the
Korea Development Institute, has
stated: "In order to really make a dent
in poverty, you have to have self-
sustaining growth in developing
countries. So instead of just
emphasizing basic human needs like
health and so on, Korea will try to
emphasize issues like infrastructure,
trade, and human resource
development." In her article, Nancy
Alexander from the Washington DC License from istockphoto.com
2

3. G20UPDATE “There is broad agreement that
development work of the G20.” It needs to be important decisions are made at the
noted here that among 38 speakers addressing an level of the G20, while many also point
audience about the plight of low-income countries to the clear deficiencies in terms of
(LICs), there was not one speaker from a LIC and legitimacy and accountability of the
only seven female speakers. The lack of voice and forum.”
participation from LICs mirrors the problem with
the G20, where only three participants from LICs
official website, the organizers argue that the
will attend as observers which particularly for a
Business Summit “aims to underscore and
discussion of development in their countries is
improve the G20’s role as the premier forum for
completely inadequate.
global economic cooperation and further bolster
Civil society will gather on October 14-15 for
the credibility of the G20 Summit.” This type of
the so-called Civil G20 Dialogue, a gathering of
commitment by comparison, shows the grave
representatives of 150 civil society groups, which
will convey their policy advice to an unofficial imbalance in representation between civil
group of G20 Sherpas. Nancy Alexander, from society and the business sector.
the Boell Foundation office in Washington, is one In conclusion it becomes apparent that actors
of them and her views are reflected in her article from all three sectors want to shape both the
on pages 5-7. It is a joint initiative of the governance process of the G20 as well as push
presidential committee for the G20 Summit of the their issues and items on the agenda. Hence, it
Korean government and Global Call to Action does seem like there is broad agreement that
against Poverty (GCAP) Korea, following the important decisions are made at the level of the
practice of the Civil G8 dialogue since 2005. It G20, while many also point to the clear
will indeed be the first Civil G20 dialogue between deficiencies in terms of legitimacy and
international civil society and Sherpas in the accountability of the forum. Nonetheless, in times
history of the G20. However, while this step is of “messy multilateralism” these types of
welcome, it is clear at the same time that this type discussions seem almost unavoidable, due to the
of involvement for CSOs is neither binding for enormous number of players involved and their
G20 countries, nor institutionalized in order widely diverging interests and capacities.
Hence, for the Heinrich Boell Foundation it is
to guarantee continuous access. Moreover, access
crucial to monitor these developments closely in
is very limited through GCAP channels and can
order to assess the balance of this new governance
therefore not be considered sufficiently inclusive.
process between the three sectors and get involved
Topics covered include pro-poor policies, financial
in the setting, analyzing and criticizing of the
reform, international financial institutions, anti-
agenda discussed at the level of the G20.
corruption, climate change, governance and
development. Therefore, the Foundation is dedicated to
The private sector is being included in the increasing the voice and expertise of a broader
consultations around the G20 Summit through the spectrum of parliamentarians, NGOs and policy-
Seoul G20 Business Summit on November 10-11, oriented think tanks in countries where we are
which will bring together 120 of the world’s represented with an office in order to balance
leading business executives in order to establish an the apparent shift towards public-private
infrastructure, where the private sector is linkages within the G20 process and to
incorporated into the G20 framework. On the make it more inclusive.
Worth clicking - G20 related Links & Documents
Official G20: Civil Society: Information Sources:
G20 Seoul Summit The making of a Seoul G20 Information Centre
Development Consensus (G20 Research Group,
G20 High-Level Development (Oxfam) University of Toronto)
Conference
G20 and Global Development Summit Speak Blog
Seoul G20 Business Summit (German Development (CIGI)
Institute)
G20 Monitor
What is missing in the G20 (Bruegel)
agenda
(IBON International) G20 Voice
The G20 & Development - a
new era
(interaction.org)
3

4. G20UPDATE
G20 MUST READS
Development Issue A development agenda Prospects for the G20
Paper for the G20 Seoul Summit
by the Presidential by FRIDE by G20 Research Group
Committee for the G20 By Rajiv Kumar
Summit By John Kirton
Link: http://www.fride.org/
Link: http://www.boell.org/ publication/801/a-development-
downloads/ agenda-for-the-g20 Link: http://www.g20.utoronto.ca/
Development_Issue_Paper.pdf biblio/kirton-seoul-100920.html
This policy brief is part of the
This leaked position paper project - the G20s role in the post-crisis John Kirton, from the Munk
prepared by the Korean G20 world - jointly undertaken by the Club School of Global Affairs at the
Presidential Committee is indicative of of Madrid, FRIDE and the University of Toronto, takes stock of
both the way in which the host-nation Government of Korea. It argues that what he expects from the upcoming
intends to push development on the first, while it is important to include G20 Summit in Seoul. He draws on his
agenda, as well as their understanding development issues in the G20 agenda, wide-ranging experience and research
of development policy. In addition, this this could be done with greater impact on club governance with the G8 and
paper served as part of the background once the future existence and efficacy of G20 Research Group.
of Nancy Alexander’s analysis and the group is ensured. The second He argues, that the central
critique of the G20’s development argument Kumar makes, is that the G20 challenges for Seoul lie in the G20’s
policy on the next pages of this should focus on a selective number of core financial realm. First, they are
newsletter. development issues related to critical expected to accept the new rules on
Surprisingly, the paper argues that constraints to achieving rapid, equitable banking that were put forward by the
by including development issues in the and sustainable growth in developing Basel Committee. Secondly, and far
Seoul Summit agenda, the G20 will economies. If the G20 spreads itself too more difficult, is to complete the
affirm it’s legitimacy by providing thinly, it risks becoming yet another promised shift of at least 5 per cent of
inclusive and broader economic layer in the hierarchy of agencies the quota share of the International
leadership. Moreover, it becomes clear overseeing global efforts for promoting Monetary Fund (IMF) to the rapidly
that the group wants to embed the development. rising emerging economies from Asia,
development discussion into the In addition, Kumar makes a rather from the declining, established
“Framework for Strong, Sustainable and interesting argument, saying that continental European ones. Kirton
Balanced Growth”, which came out of suggestions for achieving greater argues that this constitutional change is
the Pittsburgh Summit in 2009. As a legitimacy such as establishing objective one worthy of leaders alone to make
result, the discussion of development is criteria for membership strike at the and that if they fail to do so in Seoul, it
very much situated within a growth- very basis of the formation that is by will be more difficult for China, India
oriented model focusing on low-income definition and design an informal group. and Brazil to adjust on other agenda
countries (LIC’s). In their words, Hence, he believes that for groups like items to ensure a successful summit.
“development is more than simply an the G20, legitimacy is necessarily However, progress on issues such as
issue of narrowing the income gap derived from their ability to deliver on the Doha Development Agenda, climate
between North and South; rather, it their chosen mandate and objectives. It finance and the promised elimination of
should be viewed as an integral part of is the implementation of decisions and fossil fuel subsidies will be very difficult,
the larger framework to ensure a more the ensurance of necessary follow-ups in as China insists that climate change
resilient and balanced global economy.” a timely manner that will bring should be dealt with within the United
The paper then outlines the legitimacy to the G20. Nations. In terms of development, with
following key pillars of economic In terms of the development impressive domestic environmental
growth: infrastructure, private agenda, therefore, taking on practically credentials, Korea could make valuable
investment and job creation, human the entire range of development progress in making green growth the
resources development, trade, financial activities is far too ambitious and foundation for shared prosperity in the
inclusion, growth with resilience, food impractical as an agenda for a Summit- future. Finally, as a new member of the
security and governance. To conclude, it level forum. OECD’s Development Assistance
proposes the formation of the G20 Committee, it could also do much to
development working group that has Other policy-briefs from the same build on its initiative to help the world
since been put into place and is co- project can be found at: http:// meet the G20-endorsed Millenium
chaired by South Korea and South www.fride.org/project/21/the-g20's- Development Goals.
Africa. role-in-the-post-crisis-world
4

5. G20UPDATE The Development Agenda of the
Seoul G20 Summit
Critiques and Recommendations
By Nancy Alexander
The June 2010 G20 Summit sector in order to promote the provision Even though South Korea is an
Declaration called for the formation of of public goods was barely mentioned. economic powerhouse, it scores poorly
a Development Working Group (DWG) There was an uncritical stance that on some measures of the World Bank’s
with a mandate to design measures to infrastructure (particularly public- ranking of the performance of 87
promote economic growth and private partnerships) should be a countries on restrictions on foreign
resilience, a development agenda and dominant means for boosting growth investment. The World Bank’s rating of
multi-year action plans to be adopted at levels in LICs and only one speaker country performance gives the highest
the Seoul Summit. The DWG – co- from China discussed the preconditions scores to countries without any
chaired by South Korea and South for successful infrastructure investments. restrictions.
Africa – met in July and October 2010 However, regulations can help the
to hammer out the elements of a The G20 appears to view state build inclusive markets and pursue
“Development Partnership for Shared development not as a democratic broad policy objectives, whereas their
Growth” for consideration by Heads of process led by sovereign governments, absence can facilitate a “race to the
State at the G20 Summit next month. but as something done to and for low- bottom” as corporations locate in areas
Because the proceedings of the income countries. The most substantial with the fewest labor or environmental
DWG meetings are not publicly contribution that the G20 could make protections.
disclosed, little is known about the to development would be to curb the
Framework. However, a June 2010 payments and flows that „leak“ from the ‣ Taxes
“Development Issues Paper” (see must Global South to the North through debt Competition among governments for
read recommendation) by the South service, tax evasion, capital flight, FDI leads to low or no taxation
Korean government is a call to carry payments for intellectual property rights requirements or import duties on
out an 8-point agenda, to which the and, in the area of trade, transfer corporations and inadequate levels of
French government – the host of the mispricing and false invoicing. If royalties paid by extractive industries.
2011 G20 Summit – has reportedly developing countries were able to reap Unless norms are established to ensure
agreed. With some exceptions, the revenues and retain financial resources just levels of taxation and compensation
Framework appears to be a that are rightfully theirs, they would not to governments, they will lack the
throwback to the Washington need to rely on the „beneficence“ of resources to support sustainable human
donors and expensive inducements to development.
Consensus in its calls for unfettered
woo private investors.
market based growth and its
The following paragraphs will ‣ Regulatory capture
obliviousness to global warming or
outline the main points of the G20 in Collusion and regulatory capture by
gender and human rights
terms of development (in italics), private interests has been a dominant
considerations.
followed by a critical assessment of the cause of the global financial crisis; the
“Despite the lessons of recent crises, agenda points and recommendations. Gulf oil spill; and food safety problems,
the role of the state in regulating the among others. Any serious rating of a
private sector in order to promote the The G20’s 8-Point Agenda country’s investment environment
provision of public goods was barely should measure the presence of
mentioned.” 1 - Increase private investment regulations to protect the public interest;
This article critiques the 8-point flows mainly from domestic sources, but also application of the rule of law; and the
Korean agenda as expressed at the G20 foreign direct investment (FDI) and help low- extent of collusion between public and
High-Level Development Conference income countries negotiate with foreign investors private spheres. According to the Global
which was hosted by the Korean and obtain access to finance. Competitiveness Report, the absence of
Government on October 13 in Seoul collusion is a greater determinant of the
and attended by hundreds of high-level Assessment and recommendations: business environment than factors such
officials from G20 countries and ‣ Investment regulations and as anti-corruption laws and investment
representatives of universities and think restrictions promotion efforts.
tanks. Low-income countries have weak
domestic markets and limited ability to ‣ Volatility
The Conference gave only passing attract FDI. In fact, according to The volatility of official and private
mention to issues such as climate UNCTAD, low-income countries (LICs) financial flows has led governments to
change in discussions about growth, currently attract only 0,25% of global accumulate large amounts of foreign
infrastructure (including in energy), FDI. To help attract FDI, will the G20 exchange reserves to address
agriculture and food security. Moreover, pressure LICs to create a better business imbalances. Reduction in volatility,
despite the lessons of recent crises, the environment for investment by reducing including through the use of capital
role of the state in regulating the private regulation and cutting corporate taxes? controls, is essential in order to liberate
5

6. G20UPDATE reserves for sustainable development
purposes.
2 - Promote private sector
development and jobs through deeper
involvement of the World Bank and regional
development banks; participation by sovereign
wealth funds (SWFs); improved cost-
effectiveness of public-private partnerships
(PPPs); better infrastructure governance (e.g.,
tax policy designed to mobilize domestic
finance; regulatory and property rights reforms). CC-License by racetraitor
There are some suggestions that, in order to
mobilize financing, the G20 may consider PPPs) should deliver basic services sacrifice inclusive growth for
securitizing a portion of aid, representing an (health, education, water) or supervise stabilization. Under excessively tight
advanced commitment to major infrastructure management contracts in ways that policies, often implemented as a result
investment. ensure high quality and universal of IMF policy prescriptions, high
services. All PPP contracts should be interest rates and fiscal austerity
‣ MDBs publicly disclosed so that risks assumed (including wage ceilings) reduce access
Support for the multilateral by the government and taxpayers, to finance, spending on environmental
development banks (MDBs) should be including through contingent liabilities protection, and the hiring of teachers,
contingent upon the phase-out of and explicit or implicit guarantees are doctors, and other critical service
support for fossil fuels and the rigorous broadly known and accepted. personnel.
implementation of safeguard policies to
protect vulnerable groups and ‣ Infrastructure plans
ecosystems. According to the Bank Such plans should be implemented in 4 - Promote trade with an emphasis on
Information Center, World Bank Group conjunction with an industrialization “aid for trade” and duty-free quota-free
support for fossil fuel projects hit a strategy as called for by the World (DFQF) market access for the least developed
record $6.3 billion, an increase of Bank’s Chief Economist Justin Lin. countries.
138% over the previous year.
In addition, the G20 should call for:
‣ Property rights
3 - Achieve greater financial ‣Eliminating rules of origins that
Reforms should respect communally-
inclusion through means such as: expanding restrict input sourcing to increase
held lands and the rights of women to
access to finance for vulnerable groups; reducing market access for LICs.
hold title to land. Large or speculative ‣Addressing impediments to market
barriers to flows of remittances; and increasing
purchases of land should be subject to
private investment in small and medium-sized access for developing countries that
conditions, including the Free, Prior,
enterprises. The G-20 SME Finance arise outside of the trade preference
Informed Consent of affected programs.
Challenge - a partnership between the G20,
communities and the mitigation of any ‣Ensuring that trade agreements
Ashoka Changemakers, and the Rockefeller
adverse impacts of the purchases on strengthen agriculture and food
Foundation, which would combine “the
food security, land ownership and security, curb global warming, and
political and legislative power of the world's
productivity.
leaders and the creativity and ambition of the support decent work for the poor.
private sector.” In response to the “call for ‣At the Civil G20 Dialogue in Korea,
‣ Sovereign Wealth Funds the Sherpas side-stepped the question
proposals,” hundreds of entrants entered the
The World Bank’s private sector arm, of why the G20 is urging member
competition by the deadline of August 25,
the International Finance Corporation countries to respect trade and
2010 (e.g., Affinity Macrofinance). Up to 15
(IFC) has an Asset Management winners will be invited to the November 2010 investment law, but not non-trade law
Company which has launched a model G-20 Summit in Korea to be recognized for (human rights, multilateral
for these funds to co-invest in IFC their innovative ideas. In addition, the G-20 environmental agreements, etc.) by
infrastructure and other transactions. has committed to mobilizing funding (about $1 saying that since the crisis is financial
Before scaling up engagement by SWFs in nature, they are applying financial
million per recipient) to scale them up.
in infrastructure operations (including instruments to address it.
those of financial intermediaries), Unless massively scaled up, this
analyses should determine that policies initiative is more appropriate for a
(economic, social, and environmental) philanthropic foundation than for the 5 - Develop human resources with
governing these transactions are applied twenty most powerful economies in the an emphasis on higher education and enhancing
and supervised effectively. world. If the G20 is to go beyond employment-related skills.
bandaids on the financial system, it
‣ PPPs should include an emphasis on ensuring This initiative should support
The government (rather than that macroeconomic policies do not effective, gender-sensitive health and
6

7. G20UPDATE education programs, including the knowledgeable investors who deal with Development in Context
Education for All challenge (namely, such instruments on the basis of
providing an education for 72 million expectations regarding market The Development Framework will
children in low-income countries who fundamentals, rather than mainly or be implemented in the context of
are out of school), basic health care, only by speculative motives.” another Framework adopted at the
and the Global Fund for HIV/AIDS, Pittsburgh Summit - the Framework for
TB and Malaria. ‣ Correct the bias against small-scale Strong, Balanced and Sustainable
and labor intensive forms of agriculture Growth – in which each G20 country
and in favor of intensive, large-scale implements specific policies. This
6 - Enhance resilience by erecting and input-intensive forms of farming; mutual assessment process (MAP) is
barriers to protect against adverse shocks, such and monitored by the International
as the food, fuel, and finance shocks witnessed Monetary Fund (IMF) with input from
in recent years. Risk mitigation instruments, ‣ Respond to climate change the World Bank, the OECD, the ILO
such as weather-based crop insurance, are cited adaptation needs as well as the needs of and the WTO. The November Summit
as one such “barrier.” women farmers (the majority of is scheduled to bring together individual
farmers in many countries). country plans designed through the
In general, risk mitigation efforts are MAP into a comprehensive G20
less important than efforts to: strategy that is intended to facilitate
‣ Minimize or prevent shocks by, 8 - Improve the governance, multi-polar growth.
among other things, sharply accountability and transparency.
diminishing speculative capital flows In this regard, the G20 may ramp up its efforts If implemented, the MAP could
(including commodity speculation, to curb tax avoidance and illegal capital flight undermine development because of
which can raise the price of food); which cost developing countries of an estimated four major problems:
‣ Effectively employing capital control $1 trillion per year in foregone resources.
to protect countries against boom, bust ‣ its call for coordinated and draconian
The G20 should: fiscal consolidation in the advanced
“Both the development framework ‣ Improve its representativeness economies (i.e., halving deficits by 2013)
and the framework for strong, (particularly of low-income countries) which will slow growth, exacerbate the
balanced and sustainable growth and its accountability for promises global demand deficit, and fuel even
made; elevate its engagement with civil higher unemployment levels.
largely ignore the potential for a
society as it already has with businesses;
green new deal, which could boost and increase its transparency, including ‣ the risk that emerging economies will
job creation through greening the by revealing the representatives on not significantly boost domestic
economy.” working groups and the nature and demand, which would be necessary to
and buy-out cycles, as for instance, content of their proceedings. offset the decline of demand in
South Korea and Indonesia have done. advanced economies.
‣ Recognize the links between illicit
outflows of capital from developing ‣ particularly for the advanced surplus
7 - Enhance food security by helping countries, absorption of those resources economies, the MAP calls for lowering
to close agricultural productivity gaps, including by tax havens and financial institutions non-wage costs (e.g., health insurance,
through technological advances; mitigating the in international financial centers, and pensions); reducing the minimum cost
effects of food price volatility; mobilizing the adverse impact those flows have on of labor; lowering hiring costs;
private sector investment in agriculture; and poverty alleviation and economic decentralizing wage bargaining; and,
clarifying the mandates of organizations development. limiting the extent of administrative
working in this area, such as the new Global extension of collective agreements.
Agriculture and Food Security Program ‣ Require that the beneficial ownership This will cause explosive unrest and
established by the World Bank and the of all companies, trusts, foundations exploitation of workers and lower
L’Aquila Initiative. and charities be a matter of public demand of workers for goods and
record. services. Such demand is critical to
These initiatives should: rebalance the global economy.
‣Fully engage civil ‣ Recommend that the International
society, including women and small- Accounting Standards Board adopt a Importantly, both the Development
scale producer groups, as full partners. standard that all multinational Framework and the Framework for
corporations report their income and Strong, Balanced and Sustainable
‣Eliminate speculation in commodities, taxes paid on a country-by-country Growth largely ignore the potential for
especially staple foods, which can raise basis. a global green new deal, which could
food prices, as called for in number 6, boost job creation through greening the
above. The United Nations Special economy. Without an ecological
Rapporteur recommended in 9 - Knowledge sharing dimension, the frameworks represent
September 2010 that “dealing with food This information was provided by the business as usual, thereby threatening
commodity derivatives is restricted as Ethiopian Sherpa the survivability of the planet in an
far as possible to qualified and attempt to increase short-term growth.
7

8. The G20: Where to next?
G20UPDATE
An experiment in institutional innovation
By Inge Kaul
The present G-20 was born out of and the promotion of “A lengthening of the agenda at G20
necessity and under pressure from private investment in Summits could have the effect of
the 2008 world financial crisis. developing countries. pressing assembled world leaders to
Although the emerging new world Some even suggest a new consider a broad gamut of concerns
powers, notably the BRICS states, development paradigm briefly - but without sufficient focus to
had for some time expressed of inclusive growth might generate concrete follow-up action
dissatisfaction with their marginal emerge from the Seoul and lead real change”
involvement in meetings like the summit.
G-8 summits, their concerns found The host country, Korea, has been a to realize and benefit from the many
a response only when it became strong advocate for the inclusion of promises that the world’s
more and more inevitable for the development into the G-20 agenda opportunities hold, has in recent
conventional major powers to reach because the country’s leaders are years been receding further and
the conclusion that many of today’s convinced that they have a lot of further into the background of
global policy challenges, including valuable development experience to policy dialogues.
international financial regulation, share. Additionally, addressing the There is thus a risk that the G-20
can no longer be resolved effectively existing global development gap will suffer from the same weakness
by any one nation or group of might enhance the Group’s that marks many other multilateral
nations acting alone. These legitimacy in the eyes of the 170 organizations and debates: that
challenges call for international some countries that are not everyone’s “pet topic” finds mention
cooperation. members of the G-20. - often without translating into new,
So, the present Leaders’ G-20 decisive policy action. The
started as a forum for fostering a Waning leadership? predecessor of the G-20, the G-8,
global response to the global No doubt, the recent summit suffered from such an agenda
financial crisis. meeting at the United Nations on overload.
the Millennium Development Goals
A lengthening agenda (MDGs) showed all too clearly how Towards G-20 Plus: Adding
Yet, when meeting in Seoul, South far away the world still is from Issue G’s
Korea, in November this year, the attaining the Goals by 2015. Let us assume that the G-20 leaders
G-20 leaders will consider a Development issues deserve decisive do in fact want to be world leaders
lengthened agenda. In addition to action and so do many other global and that the lengthening of the
financial stability issues, it will concerns, notably climate change, Group’s agenda is not just a way of
especially include a wide gamut of energy policies, food and cyber distracting our - the global public’s -
development concerns, ranging security, and migration. attention away from earlier
from reducing maternal mortality, But, a lengthening of the agenda to commitments. That is, unrealized
fostering education, developing be considered at G-20 summit promises are not simply abandoned
human resources for the private and meetings could have the effect of because the worst of the crisis that
public sectors, and assuring food pressing assembled world leaders to had put them on the agenda has
security to issues like physical and consider a broad gamut of concerns passed and a new crisis is grabbing
institutional infrastructure building briefly—but without sufficient focus the political and media spotlight.
to generate concrete follow-up If that is the case and the G-20 is at
action and lead real change. the same time to maintain its
With an expanded agenda, will leadership capacity, a way out of
leaders have enough time to check this agenda dilemma needs to be
whether they have lived up to past found. One possibility could be to
commitments? For example, will the complement the leaders’ G-20
Seoul meeting leave room for forum with several other G-type
assessing how far we have come in bodies each focused on a specific
forging a global, concerted response global challenge like mitigation and
to the 2008 financial crisis? adaptation to climate change,
Moreover, filling the leaders’ agenda fostering energy security, supporting
with too many concerns may leave failed and failing states and other
insufficient time for developing a development issues, enhancing
common, shared vision of a better global disaster preparedness and
world in the future, say by 2050, disease prevention, enabling conflict
and how we could get there. resolution and peace building,
CC-License by Image Zen Because of the many crises we have guaranteeing food security, and
faced lately, such envisioning of how
8

9. G20UPDATE
ensuring international financial stability be missing is precisely what is to be reform steps that still have to prove
(which, of course, was the topic that the added through the Issue G-20s: a more themselves viable.
original G-20 addressed before its productive balance between However, it is time to recognize that in
upgrading to the present leadership representativeness and decisiveness of today’s world fair and effective
forum). international decision-making - to international cooperation is often the
These issue Gs could meet at the resolve existing problems in an effective, best way to pursue one’s own self-
ministerial level with varying efficient and equitable manner. The interest. States and non-state actors,
compositions depending on the issue importance of such decision-making notably firms, will continue to compete
they consider. They could be tasked has grown with globalization, greater for market shares, investment funds,
with finding breakthrough agreements openness of national borders, and other resources. Competition has
deepening policy interdependence its place. But where global public good-
“These issue Gs could be tasked with among countries, and the emergence of type challenges are concerned, that is,
finding breakthrough agreements and new world powers. challenges that affect us all and are not
policy options on issues where More policy challenges are now global, resolvable by any one nation, we need
requiring cross-boarder cooperation; encouragement to cooperate from
international negotiations are stalled,
and more actors, both state and non- leadership bodies like those of a
wherever possible in close
state, expect to have a meaningful say in G-20 Plus - or the web of global crises
collaboration and consultation with all matters of global concern. The G-20 is will become ever more dense and
stakeholders.” an experiment in institutional ruinous for all.
on issues where international innovation, an effort to adjust to
negotiations are stalled. They could also today’s new and still evolving realities. “What the present multilateral system
explore new, neglected issues, but their Most innovations happen by fits and seems to be missing is precisely what
primary responsibility would be to find starts. Therefore, the present G-20 is to be added through the Issue-G20
breakthrough policy options, wherever should be allowed to evolve toward the Model: a more productive balance
possible in close collaboration and proposed G-20 Plus. Along the way, between representativeness and
consultation with all stakeholders, changes deemed desirable could be decisiveness of international decision-
especially existing multilateral technical explored, notably alternative making.”
agencies and advisory bodies, as well as membership formulas to foster the
processes such as the climate change Groups’ representativeness and So, returning to the forthcoming Seoul
legitimacy, and perhaps, ways to summit, the inclusion of development
negotiations.
institutionalize them. on the agenda could prove to be a
Only when issues cannot be resolved
A question that might arise in this major milestone in the emergence of a
without the special attention of G-20
context is the link between the various new system of multilateralism. It could
leaders should they be brought to their
Gs and other parts of the existing draw attention to the risks of agenda
attention - not to address nitty-gritty
multilateral system. Considering that crowding and thereby encourage the
technical details but for decision-
making on possible tipping points and several actor groups, public and private, exploration of a Issue G-20 model of
national and international are today global policy leadership that would
the opening of policy doors to possible
often involved in addressing global potentially benefit all, developed and
compromise solutions.
Put differently, it is important to avoid challenges, one could argue that the developing nations alike.
an over-centralization of policymaking G-20 Plus should exist as a new,
and an overloading of the leaders’ additional institutional arrangement,
agenda, lest their capacity to exercise separate from the many other entities
genuine leadership suffer. This could be that might have to act on a particular The author is adjunct
achieved by creating the proposed issue. Such leadership at arm’s length professor at the Hertie
could strengthen the Groups’ ability to School of Governance in
second-generation G-20: a G-20 Plus
nudge other actors forward. For Berlin, Germany and advisor
composed of the leadership G-20 plus
example, if a development G were to to various governmental,
issue-specific Gs to give the former a multilateral and non-profit
strong, solid support base and free its exist already, it could do what the
organizations on issues of
time and attention for the big current G-20 working group on international cooperation,
leadership issues. development does - but at the finance, public-private
ministerial level, and hence, perhaps partnerships and global-
with more clout and continuity. issue diplomacy.
Fitting the Issue G-20 Model into
She was the first director of
the Future Multilateral System
Conclusion UNDP’s Human
Although the existing multilateral Development Report Office
Given the incremental nature of most
agencies, like those of the UN system, from 1989 to 1994, and
innovations, the current search for new
have had their successes, and in many director of UNDP’s Office of
approaches to international cooperation
respects continue to play important Development Studies from
should be allowed to evolve at an
roles, it is nevertheless becoming 1995 to 2005.
appropriate pace. There is no need to
increasingly clear that the present
hasten into the institutionalization of
multilateral system requires
what are so far only first, tentative
fundamental reform. What it seems to
9

10. G20UPDATE
G20 Database & E-Mail Group
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