Business Leaders Call for Urgent Reforms
The world economy is in the “worst condition in a century”.
Leading business leaders say the global economy is facing its worst crisis in a century, and «downside risks remain elevated», if urgent reforms are not adopted during the G-20 summit hosted by Saudi Arabia in November.
«The global economy is at its worst in a century, warned Yousef Al-Benyan, Chairman of the Business Twenty (B20), a group of high-level executives from around the world. – The challenge is to build better, and this is urgently required from politicians and business leaders».
The B20 is an engagement group that seeks to represent the voice of the global business community across all G-20 member states and economic sectors.
The group urges G-20 leaders to take «bold and broad» policy measures to put the post-pandemic economic recovery on a stronger and more stable growth path. It says trade tensions, political uncertainty, geopolitical instability and increased financial vulnerability are key risks to the outlook as societies and economies weather the devastating impacts of the coronavirus pandemic..
«As the economic recovery progresses over the next two years, downside risks will remain heightened», – said Al-Benyan, expressing concern about low productivity growth and increasing inequality.
«Business has its share of responsibility and is instrumental in rebuilding an economy that is socially inclusive and environmentally sustainable», – he added.
Business leaders calling for economic reforms for ‘world-leading’ recovery
Saudi Arabia will be the first country in the Middle East and North Africa region to host a G-20 summit. The event brings together the leaders of the world’s largest economies to address financial and socio-economic issues.
Monday guide «big twenty» presented the group «twenty» 22 policy recommendations. Each recommendation is divided into three key areas: empowering people, protecting the planet, and shaping new boundaries..
In the area of empowering people, the B20 group has provided 10 recommendations aimed at strengthening efforts to empower women and youth, and to create work capacities that are resilient to technological, health and economic risks. The group also called for increased funding for sustainable development and economic diversification, including in job-generating sectors such as domestic tourism..
The group proposed to move to significant progress in trade cooperation.
In particular, «twenty» urged G20 countries to strengthen the multilateral trading and investment system by moving away from protectionism, supporting open markets and «enforcing and improving the set of rules to ensure the playing field globally» through institutions such as the World Trade Organization (WTO).
«The business community strongly supports a robust multilateral trading system enshrined in the WTO, the group said. – But the system faced a crisis that was exacerbated by the COVID-19 pandemic».
The recommendation comes as trade and technology tensions continue to drive a wedge between the United States and China. The recommendation expresses business concerns about the Trump administration’s efforts to use sanctions as an instrument of foreign policy pressure in its key trade relations.
Protecting the planet
B20 made three recommendations for «stimulating growth within the planet». In particular, the G-20 leaders are encouraged to adhere to carbon neutrality by 2050, and accelerate the implementation of policies aimed at achieving this goal.
«Our planet is under more pressure than ever before in human history.», – the group said.
Forming new boundaries
In shaping new boundaries, B20 has provided nine further recommendations, focusing on improving the financial technology environment and using technology to manage corruption and fraud risks.
B20 recommends investing in digital infrastructure such as next-generation wireless technology systems known as 5G, artificial intelligence and the Internet of Things, which refers to internet-connected devices such as home appliances and cars that can be controlled through apps.
In particular, it is recommended «a comprehensive, balanced WTO agreement with high standards» to stimulate the growth of e-commerce.
Policy recommendations will be formally presented to the G-20 members during the virtual summit on October 26-27, the theme of which this year will be «Transforming for Inclusive Growth».
B20 stated that the implementation of the policy recommendations «will remain stable in the short term and could increase the GDP of the G20 countries by more than four percent in the long term».
Each of the policy recommendations is said to contribute to the achievement of the United Nations Sustainable Development Goals, which, if met, could provide $ 12 trillion in market opportunities and 380 million new jobs..