Global growth and stability are under threat from worldwide uncertainty, escalating tensions and the erosion of multilateralism.
That was South African President Cyril Ramaphosa’s stark warning during his opening address to the G20 summit of Finance Ministers and Central Bank Governors in Cape Town.
With the rainbow nation hosting Africa’s first ever G20 summit, Mr Ramaphosa said that it was now more important than ever that G20 members worked together.
Mr Ramaphosa stated that the grouping remained the premier forum for international economic cooperation.
He urged the G20 to take collective responsibility as effective stewards of the global economy, to encourage the conditions for sustainable, resilient and inclusive global growth.
Mr Ramaphosa spoke about the G20 Finance Track that had helped shepherd the global economy for 25 years – including engineering the world’s response to the 2008 global financial crisis, the Eurozone crisis and maintaining financial stability follow the pandemic.
This was why, at this time, G20 Finance Ministers and Central Bank Governors carried a weighty responsibility.
“It (the G20) needs to forge consensus on the actions we must take collectively to build a global economy that is more resilient, more sustainable and more equal,” he said.
Over the years, the success of the G20 had relied on alignment and collaboration between the Finance Track and Sherpa Track, Ramaphosa reflected. Each shared a common mission: to enable sustainable, resilient and inclusive global growth.
Now, the level of ambition of the two tracks needed to be raised, to achieve specific, concrete and impactful outcomes with lasting consequences, Ramaphosa urged, adding that the G20 had been founded on the principle of cooperation.
“The erosion of multilateralism presents a threat to global growth and stability,” he said. “At this time of global uncertainty and escalating tension, it is now more important than ever that the members of the G20 work together.”
Pathway to economic stability and sustained growth
Fairness, transparency and an inclusive rules-based international order was vital for economic stability and sustained growth, Ramaphosa emphasised. “It is vital to ensuring that the rights and interests of the vulnerable are not trampled beneath the ambitions of the powerful.”
He said multilateral cooperation was the only hope of overcoming unprecedented challenges. These included slow and uneven growth, rising debt burdens, persistent poverty and inequality, and the existential threat of climate change.
“We are not moving quickly enough or boldly enough to address these global challenges,” he said, advocating a collective step-change to improve lives and protect future generations.
He warned that the persistence of inequality within and between countries was “one of the greatest impediments to growth, development and stability.”
Pursuing the UN Sustainable Development Goal on reducing inequality was both an economic and social imperative, he stated.
Boosting poor nation income levels required coordinated G20 focus to ensure there was inclusive growth, based on responsive trade and investment, said Ramaphosa. Equal access to opportunities was also essential, especially for women and young people.
“For nations to flourish, equality and prosperity must be available to everyone – regardless of gender, race, religious beliefs or economic status,” he continued.
Placing solidarity, equality and sustainability at the centre of South Africa’s G20 Presidency, Ramaphosa said the host nation had identified four priorities during its term. These were:
- Taking action to strengthen disaster resilience and response.
- Ensuring debt sustainability for developing economies.
- Mobilising finance for a just energy transition.
- Harnessing critical minerals for inclusive growth and sustainable development.
Nations needed to work collectively to advance their shared goals, he added. “As the world navigates rapid technological changes, climate change and pressing development needs, the Finance Track must once again rise to the occasion,” he said.
Africa now home to some of the world’s fastest growing economies
Ramaphosa affirmed that the African continent was now of growing importance in global economic and political discussions – especially since it housed some of the world’s fastest-growing economies, embracing technology and innovation.
But Africa faced a number of challenges, including the effects of climate change, widespread poverty and high debt levels, he warned.
The Summit’s location had accentuated the need for African voices to be heard on critical global issues like sustainable growth, the digital economy and green industrialisation.
“We must focus the world’s attention on the opportunities for more rapid, inclusive and sustainable growth in Africa,” he concluded, adding that it was important “to deliver on the promise of growth and prosperity for all countries and for all people in the world.”
