Follow The 3 Wheels to Standardize the Economy

  

G20 Argentina

The 2018 G20 Buenos Aires summit, was the 13th meeting of G20, held on 30 November and 1 December 2018. Looking back in time; In the year 1999, an International forum was started to promote discussions on policy issues to build up the financial stability globally. This forum includes institutions such as “World Bank”, IMF (International Monetary Fund) and “World Trade Organization”. The forum includes 20 major economies, so it is called G-20 or “ A Group of Twenty”. The G-20 hosts meetings separately with its members. In March, 7th, in Beijing at National People's Congress press meeting, the finance minister of China expressed his view while hosts in a two-day, G-20 meeting.The meeting shaped their comments mainly on government support and on tax reforms. The finance minister also expressed that the government can face the problems, but cannot escape from them. At the end of the G-20 meeting all the leaders, along with the finance minister and Governor of People's Bank agreed to use all the combined available policy tools collectively to strengthen and stabilize the market situations. The finance minister in the G-20 negotiations on monetary policies, he opined generally that the largest economies take an optimistic part in the serious matters and risks. At last the finance minister said that the agreement is up to the expectations of the country.

The media company interviewed the Finance Minister, and inquired about the G-20 meeting about the global economy. The Finance Minister gave a statement , that the fluctuations which are occurring in the bullion market, are because of the pessimistic outlook of the global investors, the leaders vowed that, these factors do not reflect on the global economy and by collective usage of combined policy tools, the government can face the situations, but cannot escape from the situations. Regarding the disagreement on monetary policies, the Finance Minister explained that the negative interest rates may decrease the bank balance sheets which may further lead the economy to risks. Along with the monetary policy , fiscal policies and structural reforms, should be promoted to stabilize the price in the markets. The media asked the finance minister about the how different economic conditions meet the finalized consensus. The Finance Minister replied all the leaders of G-20 agreed to use the policy tools commonly according to their necessity and situation. As the expectations met by the policy tools there will be no scope for the capital flows. The media asked about the structural reforms and the Finance minister replied that the country has lots of opportunities and launched many short and long term measures. He expressed that smaller and mid sized companies have followed the administrative procedures and those were very simplified and innovate. They followed a pricing system and urbanization reforms. The most reason behind this is decentralization. This is the distortion problem. Decentralization may lead to lack of stabilization of the economy.
Targets of G-20:
To run the economy smoothly, every country has to keep in balance all the three wheels that are stability, progress and development. The International Monetary Fund reform has to regulate and strengthen the international coordination to control and stabilize the effects of monetary policies. The progress agenda has to look towards the global supply and demand. All the countries have the policy tools to regulate the institutional policies to increase the trade.The development agenda is the most important where the growth is to be more balanced in the long run. The environmental and many factors involved in the global development agenda. As the world economy started the recovery program, the G-20 started managing its growth and development crisis.
There are high expectations that the 2016, G-20, gives China an ownership to lead the global economic governance, China is preparing to contribute its share for the world's benefit. The main function of the G-20 is to manage the major economic policies and to support the smaller countries. The activities of G-20 are not concerned only within the country, as they are of multi- platform, where the whole china can participate and express their views and support the economic governance. In 2013, the State Counselor said that China is the Participator, supporter and contributor for G-20 consensus.

 

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