New Lowy Institute book looks behind the G20 Summit to see what really goes on

With G20 Leaders to meet in Turkey in two weeks’ time, a new book launched tomorrow (Nov 4) from the Lowy Institute asks if the international forum which Australia hosted last year is improving global outcomes or whether it is just talk.

The publication The G20 and the Future of International Economic Governance says that despite problems and some inherent design flaws, such as a rotating presidency, the forum is the best that the world has for dealing with global economic policy challenges.

The G20 has given 'middle powers' such as Australia, Korea, Turkey, and Indonesia an unparalleled opportunity to be at the main decision-making table for economic policy.

Expert authors in the book examine the role of the G20 for growth, trade, international tax, financial regulation, international organisations, climate change, and energy. 

Book editor Lowy Institute Research Fellow Tristram Sainsbury says there are various, and at times conflicting, opinions on the many challenges that confront the global economy, the role and performance of the G20, and how the forum might evolve.

And he warns in many policy areas, it may take another global crisis such to spur the G20 into more decisive action.

“Although both multilateralism and the G20 have been seen as in decline, the G20 still offers the best prospect of advancing multilateral solutions to economic challenges,” he said.

“Despite strong efforts by the Australian Presidency last year, the G20 needs to do more to live up to its early promise as the ‘premier forum’ for economic cooperation.”

On other key areas such as tax he says it’s been great to see the OECD deliver the Base Erosion and Profit Shifting package, which will help governments crack down on tax avoidance behaviours.

With global growth too low and unemployment too high, the G20 needs to prove that it is taking the action necessary to deliver strong, sustainable and balanced growth and ensure that there are more jobs.
 
 And on areas like climate change, trade, and energy, the G20 needs to step up and take more of the initiative in driving positive global outcomes.  And Sainsbury is confident about next year, which will be hosted by China.
 
 “All eyes will be on the way China manages the forum in 2016. Expectations need to be realistic, but I am optimistic that the G20 can deliver next year, and build on the foundations of the Australian presidency and a solid Summit in Turkey,” he said.
 
The book will be launched by the Governor of the Reserve Bank of Australia Glenn Stevens at the Lowy Institute, Sydney on Wednesday at 11am.