On the occasion of the 8th annual Toronto Global Forum, the B20 Coalition is releasing a series of recommendations aimed at addressing G20 policymakers on four key issues for the international business community. Perrin Beatty, President of the B20 Coalition, said on behalf of more than 6.7 million businesses of all sizes and from all sectors: “To boost the fragile economic recovery, we have identified four key areas where action is urgently required to nurture growth and job creation. Our members, across the globe, have selected the following priorities for coordinated policy action: trade and investment, fiscal responsibility, energy, and infrastructure and investment”. As they stress their concerns, the B20 Coalition Members call on G20 Leaders for strong action in each area so as to create an environment in which the private sector can contribute to the fullest extent to the rebound from recession. Addressing the G20 policymakers, Perrin Beatty, on behalf of Members of the B20 Coalition said: “We represent today’s job creators and it is important that the issues our members have identified as key priorities should be tackled head-on by our leaders. The private sector is part of the solution and it is essential that we are closely involved with the G20 process right from the selection of priorities to the implementation of the leaders’ decisions.” “We, as business leaders of the G20, have to continue to cooperate closely with governments to help build a stronger recovery across the globe,” he added.
TRADE AND INVESTMENT
International trade and investment are powerful tools for growth and job creation. Therefore they must be top priorities in the G20 efforts for the global recovery. Action on this front is critical because the global trade landscape is changing: global value chains are becoming more complex, smaller developing countries account for an increasing percentage of international trade, and “murky protectionism” is on the rise. B20 Coalition strongly urges G20 governments to reach a suitable compromise allowing implementation and ratification of the essentials of the Bali Trade Facilitation Agreement and to provide capacity-building assistance and financial support for developing countries. Additionally, the leaders should work to prevent new protectionisms and enhance openness on rules as well as on market access.
FISCAL RESPONSIBILITY
G20 countries must find the right balance between controlling expenditure and deficit while stimulating growth. Fiscal deficit should be controlled by the establishment of a time-bound deficit reduction plan integrated into a comprehensive economic policy. In situations where it is necessary to raise public revenues, it should be done in a manner that does not dampen overall demand in the economy or undermine incentives to invest. Sound fiscal policies are essential to sustain recovery, provide flexibility to respond to new shocks, ensure the capacity to meet the challenges of aging populations, and avoid leaving future generations with a legacy of deficits and debt. In addition, fiscal solutions must preserve the private sector’s capacity to be a source of growth and an indirect mechanism for addressing the main challenges.
ENERGY
As well as calling for sustainable energy at competitive prices, the B20 Coalition urges G20 leaders to find the political will to commit to the measurement, monitoring, reporting, control and reduction of greenhouse gas emissions under a new ambitious global agreement next year in Paris. The B20 Coalition also calls on policymakers to increase the role of the private sector in energy and for governments to encourage diversity in supply sources and accelerate innovation in energy technologies and solutions.
INFRASTRUCTURE AND INVESTMENT
Investment in infrastructure is a critical component of an overall sustainable development strategy and a key tool to enhance competitiveness and stimulate growth. In this context, the B20 Coalition proposes two strategies to stimulate infrastructure investment: recapitalize multilateral development banks (MDBs) to fund infrastructure; and develop G20 global infrastructure investment indices to equip investors with a tool for selecting viable infrastructure projects.