This content was published on 16 Jul 2022 – 14 Jul: 17,
Senior financial officials of the Group of Twenty Countries closed their meeting in Indonesia on Saturday without issuing a joint statement, as it was not possible to reach a consensus on the way to the file of the Russian invasion of Ukraine to handle.
During the two-day meeting on the island of Bali, participants sought solutions to the international food and energy crises as inflation accelerated.
But the meetings witnessed a new confrontation between Westerners blaming the Russian invasion of Ukraine for the global economic crisis, and the Russians blaming the West for the deterioration of the world economy through the sanctions it imposed on Moscow.
US Treasury Secretary Janet Yellen on Friday condemned the Russian war against Ukraine, which “shocked the world economy”, while Western ministers accused Russian economic officials of complicity in the atrocities committed in Ukraine.
Instead of the usual joint statement, Indonesia, which hosted this year’s G20 meeting, proposed issuing a statement on behalf of the group’s presidency, according to its finance minister, Sri Mulyani Indrawati.
“We will issue a presidential summary explaining what we were able to achieve in the G20 (…),” the minister said at the closing press conference.
Of the 14 divisions, according to the Governor of the Central Bank of Indonesia, Piri Warjiu, it was not possible to reach a consensus of members on two issues related to “the repercussions of the war and how to respond to it.”
– Double risk –
The ruler called on the participants in the opening of the summit to redouble efforts to achieve coordinated economic policy, at a time when the risks facing the world economy are multiplying.
Despite the lack of consensus, Kristalina Georgieva, managing director of the International Monetary Fund, called on G20 member states to “do everything possible to reduce inflation,” adjust their monetary policy and work together. work, in a statement released after the meeting.
Georgieva warned that “the outlook is weakening” and noted that the risk of “social unrest” is increasing due to rising food and energy prices.
The warning comes just months after the IMF cut its global growth forecast for 2022 and 2023, and is expected to cut its forecast again in July.
With a higher-than-expected inflation rate in June, members of the US Federal Reserve Board of Governors (Central Bank) are considering raising interest rates at their next meeting.
This trend, especially after the Federal Reserve has repeatedly raised interest rates in recent months, would raise fears that the United States is entering an economic recession and raising concerns of developing countries fearing the exit of capital from their markets.
The ongoing war in Ukraine has overshadowed discussions, especially about its repercussions on markets, and has been exacerbated by the food and energy crises.
Indonesia pursues a non-binding foreign policy, and has not succumbed to pressure from Western countries demanding that it exclude Russia from the assembly.
Russian Finance Minister Anton Siluanov attended the meeting via video technology, while two Russian officials attended.
His Ukrainian counterpart, Sergei Marchenko, also addressed the participants via video link and called for the imposition of “worse sanctions” against Moscow.
The meeting is seen as a preparatory meeting for the Group of Twenty Summit, which will be attended by the leaders of the group’s countries, which will be hosted by Bali in November.
In particular, Yellen held bilateral meetings with the finance ministers of Saudi Arabia, Indonesia and Turkey as part of her country’s efforts to lower Russian oil prices, thus reducing the financial resources Moscow allocates for its military campaign in Ukraine, according to the U.S. Treasury.
But the Indonesian minister indicated that this issue was not raised during the G20 summit.
To address the growing threats to food security in the world, the IMF, the Bank, the World Food Program, the Food and Agriculture Organization and the World Trade Organization have called for a joint declaration on urgent action in four key areas.
Georgieva stressed in a tweet on Friday night that it is necessary to “provide support to the most vulnerable groups, improve food production and invest in climate-resistant crops.”
Indonesia plans to convene a joint meeting of agriculture and finance ministers to address food security threats.
The Indonesian Minister of Finance announced that “progress” has been made with the reform of the global tax system, including the imposition of a minimum tax of 15 percent on profits of international companies by 2024.