G20 EPG Report 2018

A thought-provoking discussion of a policy report by policy-makers, that is meant to be implemented in the next few years. The combination of political forces, forced migration, climate change effects, unpreparedness for the loss of agricultural land etc. could be profoundly destabilising. New ways to counter these challenges need to be explored. Capital flow should be directed to where it can be used most productively and support growth. A new multilateral order is required to adjust to new global multipolarity. Power, influence and decision-making are decentralised in today’s far more interconnected world. A new multilateralism that enhances coherence and complementarity among the many more institutions present today, is required. Financing for development has to be scaled up to achieve a lasting impact. Private investments have to be catalysed in a derisking and risk-diversifying environment.

Most jurisdictions are part of a system of automatic exchange of information on any kind of customer deposits. There are offshore jurisdictions that are not part of this system. With the help of this system, would it be possible trace migrant-trafficking networks and counter their activities? It would be interesting to know which states are not part of this system. More than a trillion dollars are required a year for infrastructure financing alone and this calls for urgent private financing to supplement multilateral public sector financing. This would mean developing countries are ill-placed to fund infrastructure development and they urgently require private investments. Before this is made possible, there should be the assurance of an environment of diversified risk in developing economies. This would be the role of the International Monetary Fund (IMF) and the World Bank in attracting and sustaining private investments in developing countries.

If capital flows are directed to the right destination at the right speed and the right time for the right purpose, there will be growth. In developing countries, growth could be translated to investment in human capital and infrastructure. This would mean that a more capable and a more mobile pool of labour is available for enhanced productivity within borders or across borders. We could possibly have migrants who are better equipped to take on jobs of the future. Let us look forward to the implementation of this policy report’s proposals with positivity.

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