July 27, 2009
G20 leaders face a number of challenges when they next meet in Pittsburgh in September. Not least is that they must not be over optimistic about the economic situation, since that could actually reignite the financial crisis with economic indicators still predicting declining global growth and contracting output.
They also face the threat of a drop in support for radical and necessary change, which could result in the global economy emerging from this recession looking much as it did before, only smaller and with more people unemployed. ACCA (the Association of the Chartered Certified Accountants)’ s position paper Complacency vs Reform released in advance of the next G20 summit calls on it to tackle a number of issues including:
· Reform of Bretton Woods institutions: This has to be implemented more quickly so that developing economies, such as China and Brazil, feel more represented and can efficiently pursue their primary objectives, i.e. stability of the international financial system and the fight against poverty.
· Supporting Small Businesses around the world: Small and Medium Sized Enterprises are vital to driving economic recovery. It is crucial that G20 Government leaders recognise their importance and work to improve their operating environment.
· Investing in a low carbon economy: The lack of concrete proposals to invest in a low carbon economy from the two previous G20 Summits is worrying. While politicians struggle to retain votes and work economies out of recession, it is crucial that they acknowledge the climate crisis as well.
· More information can be found on ACCA’s website http://www.accaglobal.com/about/public_affairs/unit/global_briefings:Author : cecilebonino