The G20 Mutual Assessment Process (MAP)

April 20, 2017

Leaders of the Group of Twenty industrialized and emerging market economies (G20) pledged in 2009 to work together toward a lasting recovery from the global economic crisis. To meet this goal, they launched the Framework for Strong, Sustainable, and Balanced Growth. Through the G20 Mutual Assessment Process, a backbone of this framework, G20 countries identify objectives for the global economy, the policies needed to reach these shared objectives, and progress toward the objectives. At the request of the G20, the IMF provides technical analysis to evaluate key imbalances and how members' policies fit together—and whether, collectively, they can achieve the G20's goals. Information on the findings and recommendations of the MAP and IMF staff analysis can be found at http://www.imf.org/external/np/g20/index.htm

A Guide to Navigate the Global Recovery

The MAP is an approach to policy collaboration conceived by the members of the G20 at the 2009 Pittsburgh Summit. The G20 Leaders set the tone and substance of the initiative, with the goal of ensuring that collective policy action benefits all. The IMF, in turn, was asked by the G20 to provide technical analysis for the MAP.

IMF staff was tasked with analyzing—in collaboration with other international institutions—whether policies pursued by individual G20 countries are collectively consistent with the G20’s objective of strong, sustainable, and balanced growth. As part of this effort, IMF staff was asked to help the G-20 develop indicative guidelines to identify and evaluate large imbalances among members.

At the September 2013 St. Petersburg Summit, the G20 stressed the importance of cooperation as countries address the challenges of promoting global growth, jobs, and financial stability. It reiterated its commitment to ensuring sustainable public finances in advanced economies while taking into account near-term economic and budgetary conditions. Also, the G20 reaffirmed its pledge to cooperate to achieve a lasting reduction in global imbalances. At the November 2014 Brisbane Summit, the G20 committed to comprehensive growth strategies aimed at lifting their GDP by 2018 by more than 2 percent above the trajectory implied by policies in place before St. Petersburg. These growth strategies, which focus on increasing investment, lifting employment and participation, and enhancing trade and competition, in addition to macroeconomic policies, form the basis of the Brisbane Action Plan. At the November 2015 Antalya Summit, the G20 took stock of progress toward growth strategy commitments and countries enhanced their growth strategies with an added focus on promoting greater inclusiveness and reducing inequality. Growth strategies were further strengthened at the September 2016 Hangzhou Summit, building on an enhanced structural reform agenda and establishing a set of priorities and guiding principles as well as a new indicator system for monitoring progress. Under the Germany presidency, the G20 is developing resilience principles that will guide the update of the growth strategies. Further work is also focused on reinforcing the inclusiveness of growth. For the latest information on the G20, visit http://www.g20.org

Building Blocks to the Framework

Summit

Key steps

Description

Pittsburgh

September 2009

Policy and macroeconomic frameworks

All G20 members to share information—with each other and the IMF—about their policy plans and expected performance over next 3–5 years. IMF to examine global implications.

Toronto

June 2010

Assessment of members’ policies

IMF assessed the consistency of G20 members’ policies with growth objectives and simulated an “upside” scenario in which collective action contributes to better outcomes for all and global rebalancing.

Seoul

November 2010

Enhanced MAP with indicative guidelines

G20 leaders to gauge progress toward Framework goals via indicative guidelines to identify and assess imbalances. IMF was tasked to conduct assessment of members with large imbalances.

Policy commitments.

Each G20 member identified policy actions it would take to help achieve the common growth objectives.

Cannes

November 2011

 

Cannes Action Plan for Growth and Jobs

G20 leaders reiterated importance of  implementing measures announced by euro area leaders before the G20 Summit.

G20 leaders endorsed policy actions to correct imbalances over the medium term and ensure progress toward strong, sustainable, and balanced growth. They committed to working with greater resolve on social issues, such as unemployment and social safety nets. The G20 also committed to take significant strides toward a more stable and resilient international monetary system.

For seven countries identified as having large imbalances, sustainability reports by IMF staff provided analysis of the nature of imbalances, root causes, and impediments to adjustment.

Los Cabos

June 2012

 

Los Cabos Growth and Jobs Action Plan

G20 leaders committed to adopting policy measures to strengthen demand, support global growth, and restore confidence, address short- and medium-term risks, and enhance job creation.

G20 leaders agreed on enhancing an Accountability Assessment Framework to assess progress in meeting commitments toward the shared goal of strong, sustainable, and balanced growth, and conducted the first assessment under this framework.

Saint Petersburg

September 2013

 

St. Petersburg Action Plan

G20 leaders agreed on an Action Plan to cooperatively boost global growth, jobs, and financial stability and acknowledged the need for fiscal consolidation to reflect economic conditions.

Brisbane

November 2014

 

Brisbane Action Plan

G20 leaders committed to comprehensive growth strategies aimed at boosting their collective GDP by more than 2 percent above the trajectory in the October 2013 IMF WEO baseline by 2018.

Antalya

November 2015

 

Antalya Action Plan

G20 leaders took stock of progress toward the implementation of growth strategies and reiterated their commitment to a full and timely implementation of the growth strategies. The action plan also focused on promoting investment and greater inclusiveness.

Hangzhou

September 2016

Hangzhou Action Plan

G20 leaders enhanced growth strategies based on a new framework for structural reforms, including nine priority areas, guiding principles, and an indicator system for accountability.