GANDHINAGAR, India: G20 finance chiefs ended talks in India Tuesday with disagreement over Russia’s war in Ukraine, limited progress on debt restructuring and warnings that divisions between rich and poor nations risked deepening poverty. Many countries are still recovering from the coronavirus pandemic and drastic commodity price surges triggered by Russia’s invasion of Ukraine, while climate change is affecting some of the poorest countries least able to cope.
The Group of 20 major economies failed to agree on a joint statement "because we still don’t have a common language on the Russia-Ukraine war”, but progress had been made on key issues, Indian Finance Minister Nirmala Sitharaman told reporters after the two-day summit of finance ministers and central bank governors in Gandhinagar. The conflict in Ukraine created a devastating global economic impact sending food prices soaring, with diplomatic loyalties torn between Russia and the West.
"Most members strongly condemned the war in Ukraine and stressed that it is causing immense human suffering and exacerbating existing fragilities in the global economy,” a G20 outcome document read. The war was "constraining growth, increasing inflation, disrupting supply chains, heightening energy and food insecurity, and elevating financial stability risks”, it added. ‘Impact poorer nations’ US Treasury Secretary Janet Yellen on Sunday insisted redoubling support for war-stricken Ukraine was the "single best” way to aid the global economy, saying she would "push back” on criticism there was a trade-off between aid to Kyiv and developing nations.
As talks took place, Russia refused to extend a deal on Monday allowing critical Ukrainian grain exports through the Black Sea, sparking outrage from the United Nations, which has warned millions of the world’s poorest would "pay the price”. German central bank chief Joachim Nagel told AFP it had been "really strange” to have been "discussing how to help the vulnerable countries” as Moscow withdrew from the grain deal. It will "likely to have an impact on food prices, which will more heavily impact poorer nations”, South African Finance Minister Enoch Godongwana said. Any discussion on Ukraine is awkward for India, which has not condemned Russia’s invasion but is also part of the Quad grouping alongside Australia, the United States and Japan.
‘Paying the price’ International Monetary Fund chief Kristalina Georgieva said that "the world today is more shock-prone and fragile, with climate change, pandemics, and Russia’s invasion of Ukraine all causing widespread turmoil”. The United States has said efforts to reform multilateral lenders such as the World Bank and other regional institutions could unlock $200 billion over the next decade. Debt distress G20 finance ministers also discussed multilateral development banks’ reform, tax, cryptocurrency regulations and climate change adaption finance.
Debt restructuring deals for low-income nations were also a key focus. China, the world’s second-largest economy and a major lender to several stressed, low-income countries in Asia and Africa, has so far resisted any one-size-fits-all debt restructuring formula. China’s finance ministry said multilateral creditors should handle debt "in accordance with the principle of common action and fair burden”, and that the G20 should "objectively analyze the causes of debt problems of vulnerable countries”. Several G20 countries suggested Beijing was reluctant on a deal. – AFP