Transcript of G-24 Press Briefing

IMF News, October 13, 2017

Source details

Ministers welcomed the increased momentum in global growth but expressed concern with medium-term downside risks.
Mitigating risks requires policy coordination to minimize adverse spillovers on developing countries and continued multilateral commitment to avert protectionism and maintain an open, rules-based trading system.
An adequate global financial safety net is essential; a quota-based, adequately resourced, and evenhanded IMF is central to that objective.
The G-24 looks forward to the results of the ongoing review of the IMF and of the IMF toolkit intended to address liquidity and precautionary needs of member countries.
The G-24 supports a more comprehensive IMF engagement with low-income countries.

Calls and requests:
- Completion of the IMF’s 15th General Review of Quotas and a revised quota formula.
- A revised quota formula to further shift quota shares from advanced economies to EMDCs to better reflect their growing weight in the global economy.
- On the World Bank, a shareholding review to achieve equitable voting power between developed and developing and transitioning countries.
- Safeguard and enhance the financial strengths of the World Bank.
Emphasis on mobilizing financing for development from public and private sources.
The IMF, World Bank, and United Nations efforts to strengthen assistance for domestic resource mobilization were welcomed.
Importance of effective international tax cooperation to address challenges of developing countries was underscored.
Multilateral development banks, including the World Bank, have a key role to play in supporting policy and institutional frameworks and catalyzing private financing.
Membership update: The G-24 welcomed two new member countries, Kenya and Ecuador.
The G-24 looks forward to continued collaboration with the G-20 and expressed support to Argentina, which will hold the G-20 presidency next year and is a G-24 member.

On the Paris Climate Agreement, the G-24 encourages countries to implement their commitments, which are key to meeting the sustainable development goals.
Extreme weather events have substantial adverse human and economic consequences in G-24 countries.
Emphasis on a strong global response and support for developing countries’ pursuit of adaptation and mitigation strategies, with special mention of Caribbean countries recently affected by devastating hurricanes.

Foundations for inclusive growth highlighted as a priority: transforming economies to improve job creation and reduce poverty and inequality.
Priority agendas include:
- Investment in quality education and skills development to empower youth to productively engage in economies.
- Job creation through private investment and promotion of formal private sector employment.
- Support for entrepreneurship and small businesses to absorb youth when formal jobs are insufficient.
- Gender equality as an important dimension of inclusive growth.
The membership has placed significant importance on job creation and employment; G-24 jointly convened a Geneva meeting with the ILO on these issues.

Technology trends noted: data analytics, artificial intelligence, robotics, 3-D printing — described as part of a “fourth industrial revolution.”
General assessment:
- Technological progress is welcomed for enhancing productivity and accelerating growth.
- The implications of new technologies depend on country context and economic feasibility.
- High premium on education, training, and skills development; those acquiring human capital will benefit most.
- Societies must adapt to capture opportunities and manage inclusion challenges.
Country perspectives:
- Ethiopia (low-income, young population): may still compete in labor-intensive activities; need to evaluate economic feasibility of adopting certain technologies.
- Sri Lanka (lower middle-income): must infuse new technology and drive innovation to remain competitive with regional peers; cannot compete on low wages with some neighbors.
Concern about job displacement in activities where technology advances; many countries are in early stages of addressing this.

Ethiopia:
- Close to 70 percent of the population is under the age of 30.
- Policy priorities: quality education and skills, formal private investment to create jobs, and support for youth entrepreneurship and small businesses.
Sri Lanka:
- Noted as an outlier in South Asia: on the cusp of aging despite being a lower middle-income country.
- Historical success in female education and voluntary family planning contributed to earlier demographic transition before economic transformation.
- Policy priorities: shift from labor-augmentation growth to productivity-driven growth; improve technical education and skills aligned with sectors of comparative advantage.
Regional observation: South Asia and many African countries have young populations that can be an advantage if education and skills are aligned to labor market needs; other regions face aging-related challenges.

The G-24 expressed concern about rising protectionist tendencies and the adverse global growth and employment consequences if protectionism advances.
Observations on trade dynamics:
- The impasse in the Doha Round and the rise of regional and bilateral trade agreements seen as second-best solutions.
- Countries are increasing market access via bilateral, regional, and plurilateral agreements.
- Sri Lanka examples: widening free-trade agreement in goods with India; negotiating economic partnership agreements with China and Singapore; GSP Plus with Europe.
The G-24 emphasized the importance of maintaining as much market access as possible amid limited multilateral progress.

Ethiopia:
- About 70 percent of the population is under the age of 30.
- Policy focus: quality education, skills development, private investment, entrepreneurship, promotion of small businesses.
Sri Lanka:
- Corrected per capita income: U.S. dollars 3,840 (Sri Lanka described as a lower middle-income country).
- Land area cited in question: 65,000 square kilometers (as referenced by a questioner).
- Population cited in question: 21 million (as referenced by a questioner).
- Policy focus: improve learning outcomes (particularly STEM), align education and skills with sectors of dynamic comparative advantage, emphasize technical education and skills development.

Transcript of G-24 Press Briefing — October 13, 2017. IMF Communications Department.