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Policy Contribution

The G20 turns ten: what’s past is prologue

This Policy Contribution assesses the performance of the G20 since its first summit held in November 2008 to understand what could lie ahead for the institution.

By: and Date: November 15, 2018 Topic: Global economy and trade

The first G20 leaders’ summit was held in Washington DC in November 2008. This Policy Contribution assesses the performance of this informal but influential institution since then to understand what could lie ahead. We focus on the coordination of national economic policies as this has been at the core of the G20 leaders’ agenda throughout the decade.

The G20 leaders created a supportive political environment for strong national and global actions soon after they first met. This prevented a global depression but was followed by an uneven recovery. The leaders early on called for enhanced coordination of macroeconomic policies. This was clearly an ambitious undertaking given the limited success of earlier coordination efforts within the more homogeneous G7. Even after ten years such coordination remains a work in progress. The G20’s emerging and developing economy members, with the exception of China, have remained cautious in their engagement on macro policies. This caution could reflect emerging and developing economies’ discomfort at the obligations that could arise if they come to be considered systemically important despite lower levels of income, wealth and institutional capacity. Habits of cooperation among the newcomers are also less developed than within the G7. Coordination between the G7 members is reinforced by the G7 continuing to hold its own leaders’ meetings separate from the G20.

While emerging and developing economies are catching up with advanced economies in their contribution to real output and merchandise trade, the picture is very different where cross-border finance is concerned. Transactions on capital account are dominated by the advanced economies. Despite a shared concern for global financial stability, this asymmetry makes for different priorities in the reform of global finance. The G20’s emerging and developing economy members seek to insulate their less open and more vulnerable financial systems from shocks arising from policy measures taken by the advanced economies, and to make global liquidity less dependent on the US dollar. The leaders’ summit from 30 November to 1 December 2018 in Buenos Aires (concluding the Argentine G20 Presidency) and the summit to follow in Osaka in June 2019 (hosted by Japan) both provide opportunities for European G20 members to provide political leadership on this financial reform agenda, and on the important but hitherto neglected area of trade.

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External Publication

Global Economic Resilience: Building Forward Better

A roadmap for systemic economic reform calling for step-change in global economic governance to increase resilience and build forward better from economic shocks, prepared for the G7 Advisory Panel on Economic Resilience.

By: Thomas Wieser Topic: Global economy and trade, Macroeconomic policy Date: October 14, 2021
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Opinion

European governance

The inconsistency in global strategic relations

All of this talk on strategic retrenchment and autonomy is the language of escalation, not of appeasement and collaboration.

By: Maria Demertzis Topic: European governance, Global economy and trade Date: October 13, 2021
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Blog Post

European governance

Pandemic prevention: avoiding another cycle of ‘panic and neglect’

Agreement is needed at international level on mechanisms to ensure better preparedness for the next pandemic.

By: Anne Bucher Topic: European governance, Global economy and trade Date: October 7, 2021
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External Publication

A world recovery fund to overcome developing countries’ post-covid debt woes?

Proposal to set up a World Recovery Fund (WRF), aimed at addressing some of the key problems with the design of the DSSI and more generally the existing international financial architecture for dealing with debt problems in the developing world.

By: Alicia García-Herrero Topic: Global economy and trade Date: October 6, 2021
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Opinion

The geopolitical conquest of economics

Although economics and geopolitics have never been completely separate domains, international economic relations were shaped for 70 years by their own rules. But the rise of China and its growing rivalry with the United States have brought this era to an end.

By: Jean Pisani-Ferry Topic: Global economy and trade Date: October 4, 2021
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Blog Post

German elections: seizing the moral and economic opportunity of global health security

The new German government should play its part in global health security and preparedness.

By: Amanda Glassman and Guntram B. Wolff Topic: Global economy and trade Date: September 24, 2021
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Blog Post

Germany’s foreign economic policy: four essential steps

Germany and the EU need to develop a strong and proactive agenda to manage foreign economic relations, which are essential for German and European prosperity.

By: Guntram B. Wolff Topic: Macroeconomic policy Date: September 23, 2021
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Opinion

Making supply chains more resilient

After the current global semiconductor shortage, business leaders and policymakers must think now about how to minimise the effects of future exogenous shocks on production networks and the global economy.

By: Dalia Marin Topic: Global economy and trade Date: September 14, 2021
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External Publication

European governance

EU-India trade relations: assessment and perspectives

In-depth analysis prepared for the European Parliament's Committee on International Trade (INTA).

By: Suman Bery, Sonali Chowdhry, Alicia García-Herrero and Niclas Poitiers Topic: European governance, Global economy and trade Date: September 10, 2021
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Essay / Lecture

Global asymmetries strike back

This essay addresses an old question that international relations scholars view as fundamental, but which economists regard as secondary: that of asymmetries in international economic relations.

By: Jean Pisani-Ferry Topic: Global economy and trade Date: September 2, 2021
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Past Event

Past Event

Towards a new global trade regime: reform of the WTO

Bruegel Annual Meetings, Day 2 - the World Trade Organisation has been going through trying times, a phenomenon amplified by the pandemic. Why are we headed towards a new global trade regime? And what lies ahead for the WTO?

Speakers: Ngozi Okonjo-Iweala and Guntram B. Wolff Topic: Global economy and trade Location: Palais des Academies, Rue Ducale 1 Date: September 2, 2021
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Past Event

Past Event

The future of EU-Africa relations

Bruegel Annual Meetings, Day 1 - A discussion of the state of play and outlook of EU-Africa relations.

Speakers: Masood Ahmed, Amadou Hott, André Sapir, Vera Songwe and Jutta Urpilainen Topic: Global economy and trade Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: September 1, 2021
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