G20 Work Programme for 2007 ‘Sharing – Influence, Responsibility and Knowledge'
The meeting of G-20 Finance Ministers and Central Bank Governors, Cape Town, South Africa will take place on 17 and 18 November 2007
The 2007 Work Programme
For 2007, South Africa intends to have a G20 work programme (available from the official website) that contains a mix of legacy issues which have been deliberated within the G20 at some stage since the forum’s inception, and a few new issues. Potential themes are:
1)Global and domestic economic developments
2)Reform of the Bretton Woods Institutions
3)Fiscal elements of growth and development
4)Commodities and financial stability
Each theme is now addressed in turn, apart from the first - Global and Domestic Economic Policies and Principles - for which there was little information available at the time of writing
Reform of the Bretton Woods Institutions
The G20 work programme will focus on both IMF and World Bank reform. Contributions will be made toward resolving challenges in achieving second stage of IMF governance reform. The following issues will be examined:
•The new quota formula
•Purpose of quotas and extent to which access to Fund resources should be a function of quotas or of access policy
•Meaning of economic weight options for best capturing economic weight, periods for assessing economic weight, and approaches to addressing the challenge of data availability
•A detailed assessment of options to achieve convergence on the quantum of increase of basic votes
In addition, the 2007 work programme could include an initial examination of options on the best way to achieve a significant further alignment of quotas with the relative economic positions of IMF member countries when the next round of ad hoc quota increases take place. The work programme will also include some elements of IMF mandated related reform.
Regarding the World Bank, a range of governance and policy/mandate issues could form part of the G20 work programme for 2007. These include the following:
•Accelerating governance reforms in the World Bank, including increasing voice and participation of low-income countries both at Board and senior management level
•Strengthening the World Bank’s role in middle income countries
•Possible selective capital increases
•Possible increases in basic votes
•The proposal submitted by Mexico regarding a multilateral reinsurance corporation located within the World Bank Group
•Improving the selection of the President of the World Bank; and
•Monitoring progress with and obtaining regular updates on the External Review Committee on Bank-Fund Collaboration
Fiscal Elements of Growth and Development
Fiscal Elements of growth and development, or fiscal space, is a new component of the G-20’s work programme. This theme incorporates two main elements: the role of public expenditure and macroeconomic perspectives on fiscal policy and fiscal space
Commodities and financial stability
The G20 will look at ways in which commodity prices in recent years have affected G-20 member economies, and the role played by financial markets and financial regulatory frameworks in accentuating positive economic outcomes and minimising (or exacerbating) negative effects. The economic effects of commodity price changes differ between commodity exporters and importers, and can include positive and negative developments including boosts to exports and growth, rising tax revenues, lower costs of capital, industrial change, financial instability, higher inflation and exchange rate volatility.
This theme will be broken in two parts: 1) overview of commodity price trends, and 2) the role of macroeconomic and financial sector policies in addressing price shocks
2007 African Policy Workshops
Two one-day African policy workshops on policy themes of significant interest to African policy-makers, will be held on the day preceeding each of the two G-20 deputies meetings, at the same venues as the deputies meetings. These workshops will not be held under the auspices of the G-20 and will take place on 23rd March 2007 and 7th September 2007.