President Jacob Zuma will lead the South African delegation to the G20 Leaders’ Summit in St Petersburg, in the Russian Federation, scheduled for 5 to 6 September 2013. G20 countries account for 85 percent of global economic output, 80 percent of global trade, and two-thirds of the world's population.
The summit will take place at a time of increased turbulence in global financial markets, which has been brought about by speculation that the US Federal Reserve will soon cut back on the $85 billion it has been pumping into the financial markets every month. Emerging economies like South Africa have benefitted from the actions of the Federal Reserve, as foreign investors have bought huge amounts of South African government bonds at fairly low yields and equities. Therefore, the prospect that the Federal Reserve will cut-off these flows of funds has resulted in emerging market currency volatility, which has been yet another reminder of the risks and the potentially destabilising and negative effects that policies and shocks in major economies can have on other countries and regions.
The leaders of the G20 countries will also meet against the backdrop of a fragile and uneven economic recovery - hence the talk of the “three speed” global economy.
As the current volatility of emerging market currencies shows, decisions taken by countries based solely on their own national interest can have serious implication for other nations. There must be a greater recognition that we live in an interconnected world. "Decoupling" is not an option for either developing or developed economies. The solution to all these challenges - turbulence in financial markets, the fragile and uneven economic recovery - lies in better global coordination of efforts.
It is for this reason that South Africa joins a call by emerging markets and developing countries for:
- more carefully considered global collective action in response to the crisis; and
- more inclusive and representative governance arrangements in the management processes of international institutions.
It is envisaged that the Summit will focus on a set of measures aimed at boosting sustainable, inclusive and balanced global growth, including the creation of decent jobs. During its tenure as G20 President, Russia has focused its work on the interconnected issues on the G20 agenda around three priorities, which are intended to promote:
- growth through quality jobs and investment
- growth through trust and transparency and
- growth through effective regulation.
A BRICS Leaders’ meeting will also be held on the margins of the G20 Leaders Summit. The meeting will afford BRICS leaders an opportunity to reflect on the progress made with regards to the implementation of the Durban Declaration, especially as it pertains to the New Development Bank and the Currency Reserve Arrangement.
South Africa seeks to use its participation in the G20 to promote and strengthen the interests of Africa and of the South, on the understanding that, if managed carefully, the G20 does present meaningful opportunities for advancing much-needed global governance reforms and orienting the international development agenda.
President Zuma will be accompanied by the Minister of Finance, Mr Pravin Gordhan and the Minister of International Relations and Cooperation, Ms Maite Nkoana-Mashabane.
Enquiries:
Mac Maharaj
Cell: 079 879 3203
E-mail: macmaharaj@icloud.com
