Even G20 countries cannot solve the problem of the deficit in infrastructural investments, which will be a major global challenge in the next 15 years, without closer cooperation between governments and business.
Thursday, April 16th. In the huge halls of the Ronald Reagan Building in Washington DC, the meeting of the B20 Group is about to start. The B20 Group consists of representatives of business (including the International Organization of Employers), who elaborate recommendations for the leaders of the world’s wealthiest countries, who meet within the framework of the G20 group. This year, the B20 is even more prestigious, as its meeting coincides with a session of the International Monetary Fund and the World Bank, attended by ministers of finance of G20 countries. One can say that almost everybody who decides the shape of global economic policy is present in the US capital.
President of Employers of Poland Andrzej Malinowski and Vicepresident of the Organization Janusz Pietkiewicz are among the participants.
Similarly to G20, the main topics of discussion are investments, integration and implementation – with particular focus on the latter.
As many as six task forces work at the meeting. They focus on: infrastructure and investments, trade, employment, SMEs and entrepreneurship, as well as corruption prevention and finances.
The most important initiative of this year’s summit is the establishment of the International Business Advisory, to be chaired by Muhtar Kenta – Chairman of Coca Cola Company. The institution (comprising at least one representative of each G20 state) will be tasked with advising world leaders, including elaborating recommendations which should be taken into consideration.
Another initiative is to assess the implementation of solutions regarding national employment plans, agreed to and accepted at last year’s conference in Melbourne. What recommendations were passed this year?
Participants were unanimous in their views on challenges facing infrastructure and investments – it should be more effective. It is estimated that the global investment deficit in the next 15 years will be 15-20 trillion dollars, as a result of a.o. savings made by some governments. In light of this, countries should facilitate investment, rather than restrict business in this regard.
What is more, B20 participants emphasized the need for governments to support investment. Obstacles which discourage business from investing should be removed. Clear and transparent procedures and easy access to information on the government’s infrastructural projects, as well as promotion and protection for private undertakings.
9 trillion dollars a year are spent on infrastructure. One should keep in mind that 85 percent of the global GDP is generated by G20 countries. Meanwhile – as all panelists underlined – the problem of global investment needs cannot be solved in any way other than by closer cooperation between governments and private capital.