G20 ‘breakthrough’: finance chiefs agree to keep tabs on economic reform
Broad consensus on framework to assess structural improvements, but differences remain between US and China
The world’s top economic policymakers have agreed upon a set of indicators to monitor progress in structural reforms, a move that could lead to a mechanism to name and shame laggard nations on the global stage.
The deal was revealed at the end of a two-day meeting of finance ministers and central bank governors from the world’s top 20 economies, including the US, China, Japan, Germany and Britain, held in Chengdu in Sichuan province.
In light of the fragile world economic recovery and fresh uncertainties over Brexit, G20 officials reiterated that member countries would use monetary and fiscal policy tools – as well as structural changes – on an individual and collective basis to keep growth on track. They also reaffirmed they would refrain from competitive currency devaluations.
Finance Minister Lou Jiwei described the agreement on structural reforms as a “landmark” breakthrough for the G20. Every member had virtually agreed to a review system that would assess domestic reforms in areas from free trade to the labour market. Indicators agreed upon included workforce productivity, he said.
Every country is putting pressure on itself [in the area of structural reform], and it shows a sense of responsibility and accountability
“Every country is putting pressure on itself [in the area of structural reform], and it shows a sense of responsibility and accountability,” Lou said after the meeting.
