The two-day meeting of finance ministers and central bankers from the Group of 20 leading economies concluded on July 18 without a final communique due to disagreements over the war in Ukraine, DW reports.
Indian Finance Minister Nirmala Sitharaman explained that instead of a common communique, India issued a chair statement because there was no consensus on the Russia-Ukraine conflict. The chair summary revealed that China and Russia objected to language retained from the previous G20 declaration in Indonesia, particularly regarding the war's impact on global economic fragility and human suffering.
Despite the lack of a communique, Sitharaman noted that "several" countries condemned Russia's withdrawal from the Black Sea grain deal on July 17, a move that sparked outrage from the United Nations, warning of significant consequences for the world's poorest populations.
Throughout its G20 presidency, India emphasized the importance of addressing issues affecting developing countries, particularly debt relief. An independent panel's report for the G20 proposed that multilateral development banks (MDBs) create a new funding mechanism and triple sustainable lending by 2030 to combat poverty and achieve climate objectives.
However, China, a major lender to low-income countries in Asia and Africa, resisted a one-size-fits-all debt restructuring formula. IMF chief Kristalina Georgieva emphasized the need for a faster and more effective debt restructuring process, as delays disproportionately affect the most vulnerable countries.
World Bank president Ajay Banga expressed concerns about the growing divide between rich and poor nations, deepening the risk of poverty in developing countries. He stressed the importance of uniting and addressing the frustrations of the Global South, which faces challenges in education and employment opportunities for its young population.
Banga also emphasized the need for economic expansion to consider environmental sustainability, stating that emission-intensive growth cannot be sustained.
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