G20 pledges to pull out all the stops

Date

11/15/2015 11:48:38 PM

(MENAFN- Khaleej Times)

The leaders of the world's 20 largest economies pledged to use all policy tools to address uneven economic growth that falls short of expectations according to a draft Group of 20 communique seen by Reuters on Sunday.

As the G20 leaders gather in Turkey for a two-day meeting on how to boost global growth much of the economic discussions has been overshadowed by the deadly attacks claimed by Daesh in Paris on Friday that left more than 120 people dead.

In a nod to jittery financial markets the leaders highlighted the need to "carefully calibrate" and clearly communicate policy decisions according to the draft the final version of which is due to be released today.

They also noted the scale of the refugee crisis saying all states need to share the burden including through refugee resettlement and other forms of humanitarian aid while underscoring the importance of a political solution.

They also endorsed the so-called "BEPS" measures to overhaul the global tax system.

They draft communique did not directly address the fight against terrorism which the G20 have highlighted in a separate document.

Inequality a threat

Also the G20 is set to list inequality as a threat to both global stability and economic growth as it urges more action against cross-border tax-dodging.

Draft summit conclusions called not just for "strong sustainable and balanced growth" but also for the world's largest economies to ensure that this growth is "inclusive job- rich and benefits all segments of our societies". They went on to call on the Organisation for Economic Cooperation and Development to bring developing countries into its tax cooperation project which is aimed at stopping companies from hiding profits.

This emphasis may reflect the location of the summit in Antalya on the south coast of Turkey which has the G20's 16th-largest economy but the group's 10th-largest population. The country is also coping with the consequences of conflict in neighbouring Syria with millions of refugees pouring into the country.

"A successful outcome in Turkey must include action on climate change tax reform and inequality as well as a bold new plan to tackle the refugee and migrant crisis" said Steve Price-Thomas deputy advocacy and campaigns director of aid agency Oxfam in an e-mailed statement.

He called for "deeper corporate tax reforms to stop multinational companies cheating rich and poor countries out of billions in tax revenues."

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