The UAE attended the first Framework Working Group (FWG) meeting that was held under the G20 finance track. The meeting was held in Bangalore, India, on 16 and 17 December. Some of the key points that were discussed in the meeting were price hikes related to food, and fuel, and the negative impacts of climate change.
These global economic issues were discussed and a detailed work plan has been created for the next year.
Global Economic Issues
The UAE delegates who attended the meeting were mainly from the Ministry of Finance (MoF) namely Ali Abdullah Sharafi, Acting Assistant Under-Secretary for the International Financial Relations Sector at MoF, and Thuraya Hamed Al Hashemi, who is the Director of the International Tax Department at MoF.
Other G20 member nations and their representatives, invited delegates and International organizations also attended the meeting.
The MoF representatives suggested that effective measures should be taken in order to increase food production on a global scale. They also recommended that more studies should be done on the finance and operations that will aid developing countries in increasing their agricultural production.
The research should also focus on key investment sectors that can improve production through technical advancement. The MoF team also appreciated the G20 group’s effort in analyzing the impacts of climate change and as part of the movement, invited FWG members to be part of the coordination of the COP28 summit happening in UAE next year.
The G20 finance meetings also looked at the economic distribution of important resources through macroeconomic policymaking. The food and energy problems faced by these low-income nations can be solved only through the combined effort and international interference.
Another aspect of the discussions was to look at global financial stability within the context of Covid-19 and the phase after. The pandemic has caused a larger scale of financial instability in different economies throughout the world. In order to address these issues, international coordination is paramount and in this aspect, the G20 framework can make a lasting impact.
The G20 also known as the Group of 20 was formed in 1999 to address broader macroeconomic issues but now it has widened its operations to areas like sustainability, climate change, anti-corruption, health, agriculture, etc.
The G20 consists of twenty countries namely Argentina, India, Australia, Brazil, Canada, China, France, Germany, Indonesia, Italy, Japan, Mexico, Russia, the Republic of Korea, the European Union, Saudi Arabia, South Africa, Turkiye, United Kingdom and the United States of America.
Apart from the main twenty members, there are Guest nations like Bangladesh, UAE, Egypt, Mauritius, Netherlands, Nigeria, Oman, Singapore, and Spain. The G20 presidency works on a rotational basis and this year it was conducted in India.
The G20 member nations represent over eighty-five percent of the global GDP, seventy-five percent of global trade, and two-thirds of the world population. Because of such a big-scale impact on these nations, the meeting acquires importance on a worldwide scale as sustainability and economic stability have been the hot topics of a world that is recovering from an economic slumber caused by the Covid-19 pandemic.
The finance track of the G20 will be mainly headed by the finance ministers and central bank governors and UAE being a guest nation has made considerable contributions to the meeting that happened this year in India.
As UAE is aiming to become a fully sustainable nation in terms of economy and environment, the strategies and policies followed by the Emirate nation can definitely help the G20 members in creating a roadmap for the coming year. It will also forge a global team-up of resourceful nations that can come in congruence to understand, deliberate, and execute high-level policies that can mitigate numerous economic issues of developing and low-income nations.