President Jacob Zuma has arrived in Los Cabos, Baja California Sur, in Mexico for the meeting of the G20 Summit. President Zuma is accompanied by the Minister of Finance, Mr Pravin Gordhan.
The G20 is the leading forum for international cooperation on global economic and financial matters. It brings together the world’s major advanced and emerging economies.
The main objective of the G20 is to achieve global economic stability and, sustainable growth, through the promotion of global economic coordination between its members. It also promotes financial regulations to reduce risks and prevent future financial crises.
South Africa’s participation in the G20 is informed by the goal of promoting meaningful economic relations with the world that would enable the achievement of inclusive and sustainable growth, thereby contributing to the eradication of poverty, inequality and unemployment and creating a prosperous society. It is also informed by the goal of achieving a better Africa and contributing to a better and just world.
The summit takes place against the backdrop of a euro zone debt crisis which is threatening the European monetary union. The developments in Europe have already had a negative impact on global financial markets.
“The continuing vulnerability of several larger European economies presents serious negative implications for the global economy. European countries need to work together to resolve the debt problems which have created volatility and uncertainty in the world economy. The prolonged global crisis is placing pressure on national budgets, which would be to the detriment of the social spending that is much needed on the continent in the current environment. We will be urging G20 members to put the interest of the global economy ahead of short-term national interests. While understanding the impact of the crisis on the whole world, we also urge that the crisis in the Eurozone must not push development issues to the bottom of the G20 agenda,” said President Zuma.
South Africa attends the G20 against the background of encouraging growth in the African continent. Several economies in Africa and the developing world continue to grow quicker than the main developed economies. Sub-Saharan Africa is projected to grow at an average of 5%, which would make the continent only second to emerging Asia as the fastest growing region in the world.
“African governments have generally managed their economies prudently over the past decade, which has allowed for greater fiscal space in response to the global crises. Africa looks to this G20 summit in Los Cabos to help ensure economic stabilisation in Europe so that these growth trends can continue’’, said President Zuma.
South Africa will also raise the issue of the reform of the international financial architecture and the need for a greater voice and representation for developing countries, especially African countries, in global economic and financial governance.
South Africa will also promote equitable trade and the conclusion of the Doha development round, which can make an indispensable contribution to economic growth, reducing poverty and achieving the millennium development goals (MDGs) and job creation.
South Africa welcomes the inclusion of tourism, as a key item on the agenda at the G20 Leaders’ Summit. Tourism has been identified as one of the top six job drivers in the country, as part of the New Growth Path. The identified job drivers are infrastructure development, agriculture, mining and beneficiation, manufacturing, the green economy and tourism.
Preliminary research by the United Nations World Tourism Organisation and World Travel and Tourism Council shows that in 2011, 656 million international tourists visited G20 countries. Of these, an estimated 109 million tourists originated from source markets which required a visa. This represents 17% of the total international tourism market to the G20.
Improvements in visa facilitation could result in opportunities to stimulate wealth creation and job generation.
In addition, some donors have not met their 2010 development finance commitments. “We encourage donors to meet their targets and that those who have not developed assistance targets yet for sub-Saharan Africa to do so, with clear timetables," said the President.
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