The second meeting of G20 Framework Working Group (FWG) under the Indian G20 Presidency was successfully concluded in Chennai on March 25, 2023.
The two-day meeting was co-chaired by Dr V Anantha Nageswaran, Chief Economic Adviser to the Ministry of Finance, Government of India, and Ms Clare Lombardelli, Chief Economic Adviser to the UK Treasury. The meeting was attended by around 87 delegates from G20 member countries, guests and international organizations.
The Framework Working Group focuses on global macroeconomic issues and deliberates on how to enhance policy cooperation for strong, sustainable, balanced and inclusive growth (SSBIG). The meeting’s agenda included discussions on the global economic outlook and risks, with particular emphasis on inflation, the macroeconomic implications of food and energy insecurity, climate change, and transition policies.
During the debate, members discussed and agreed on the way forward for the year’s major outcomes, including those on the macroeconomic consequences of food and energy insecurity and climate change and transition pathways. In addition, several international organizations, including the WBG, IMF, FAO, IEA, GNFS and OECD, made detailed technical presentations on these issues to report on the FWG results.
The second meeting of the G20 Framework Working Group will be held
The debate on the outlook and risks for the world economy stressed the need to continue efforts to control global inflation and remain vigilant to emerging financial risks. Members also deliberated on how food and energy prices remain high in many economies, disproportionately affecting vulnerable countries.
The discussions also highlighted the difficult trade-offs countries face in balancing short-term energy security with long-term structural reforms for the transition to cleaner energy. Ensuring the availability and accessibility of essential minerals to facilitate a smoother transition, as well as generating internal savings to meet investment needs and thus boost economic growth for the transition, were other issues discussed.
parallel meetings
On the sidelines of this FWG meeting, a roundtable on “Macroeconomic Impacts of Climate Change and Transition Pathways” was also organized, in collaboration with the UAE, which will chair COP28. The aim of the session was to develop a collective understanding of the challenges countries face during the climate transition and initiate a macroeconomics discussion around climate policy measures and transition pathways.
An outreach program with IIT Chennai and Madras School of Economics was also held on the eve of the meeting. The Chief Economic Counselor interacted with students and researchers on India and the global economy, mainly focusing on the Indian G20 Presidency in 2023.
The debate on the outlook and risks for the world economy stressed the need to continue efforts to control world inflation
To learn about Tamil Nadu’s rich cultural heritage and diverse cuisine, delegates were treated to dinner and had the opportunity to experience Tamil Nadu’s rich cultural heritage during an excursion to some of Chennai’s iconic landmarks.
The Reserve Bank of India also organized a series of “Jan Bhagidari Events” which highlighted the importance of people in Indian policy making. Among them, a financial education program in which several organizations of agricultural producers, farmers and self-help groups participated, followed by an awareness program aimed at students, events to promote digital financial inclusion among street vendors and promote inclusive financing through the awareness of entrepreneurs and exporters of MiPyMES.
