CHENNAI: The second meeting of the G20 Framework Working Group (FWG) was held under Indian presidency on March 25, and concluded with great success.
The two-day meeting, which was attended by 87 delegates from G20 member countries, invitees, and international organisations, was cochaired by V Anantha Nageswaran, Chief Economic Adviser, Ministry of Finance, and Clare Lombardelli, Chief Economic Adviser, UK Treasury.
The FWG, which focuses on global macroeconomic issues, deliberated on enhancing policy cooperation to achieve strong, sustainable, balanced, and inclusive growth. Discussions during the meeting centered on the global economic outlook and risks, with particular emphasis on inflation, macroeconomic implications of food and energy insecurity, climate change, and transition policies.
Deliverables discussed
In addition, several international organizations, including WBG, IMF, FAO, IEA, NGFS, and OECD, made detailed technical presentations on these issues to inform the FWG outcomes. Members discussed and agreed on important deliverables for the year, including macroeconomic consequences of food and energy insecurity, climate changes & transition pathways.
The need to manage global inflation and remain vigilant to emerging financial risks was also emphasized during the discussion on the global economic outlook and risks. Members deliberated on how food and energy prices remain elevated in many economies, disproportionately affecting vulnerable countries.
The discussions also highlighted the difficult trade-offs countries face as they balance short-term energy security with long-term structural reforms for the transition to cleaner energy. Issues related to ensuring the availability and accessibility of critical minerals to facilitate smoother transition and generating domestic savings to meet investment needs and boost economic growth for the transition were also discussed.
Climate change
The FWG also hosted a panel discussion on ‘Macroeconomic Impacts of Climate Change and Transition Pathways,’ in collaboration with the UAE, which will hold the Presidency of COP28. The session aimed to develop a collective understanding of the challenges facing countries due to climate transition and initiate a discussion on the macroeconomics around climate policy action and transition pathways.
In the run-up to the meeting, an outreach programme was held with IIT Chennai and Madras School of Economics. The CEA interacted with students and researchers working on India and the world economy.
Dinner diplomacy
As part of the cultural programme, the delegates experienced ‘Ratri Bhoj Par Samvad’ (Conversation over Dinner), where they experienced the rich cultural heritage of Tamil Nadu and enjoyed its diverse cuisine. The delegates also had the opportunity to experience the rich cultural heritage of Tamil Nadu during an excursion to a few landmark places in Chennai.
The Reserve Bank of India also conducted several ‘Jan Bhagidari’ events to drive home the point of people-centricity in Indian policymaking.
