The G20

Development

Strengthening development is central to the G20’s objective of achieving strong, sustainable and balanced growth and ensuring a more robust and resilient global economy. As G20 host and chair of the Development Working Group, Australia along with other G20 members, is focused on practical, high-impact development outcomes in areas that support the G20’s broader growth agenda, including in infrastructure, domestic resource mobilisation (including tax), and financial inclusion (including remittances).

Australia, with other G20 countries, is focused on boosting developing countries’ participation in, and contribution to, global growth by

  • helping to increase financing for infrastructure investment in developing countries and encouraging the right conditions to attract private sector investment
  • supporting the participation of developing countries in international tax arrangements so they can reap the benefits for domestic revenues
  • assisting, through the Global Partnership for Financial Inclusion, developing countries to expand the use of formal financial services and reducing the cost of transferring remittances into developing countries.

The G20 members are also continuing work on other priority areas outlined in the G20’s 2013 St Petersburg Development Outlook. These are:

  • food security, where we are considering what actions the G20 can take following consideration of a Review of Economic Growth and Job Creation in Relation to Food Security and Nutrition
  • human resource development, where we are helping developing countries to match education and training results with future job markets.

The G20 is also looking at the post-2015 development agenda and considering how the G20 can best support the UN-led process to define a new development framework to replace the Millennium Development Goals.

Australia is actively consulting with G20 and non-G20 countries, international organisations, civil society, business and other engagement groups on the 2014 development agenda.

For more information on the G20 development agenda in 2014 see the G20 website and watch an interview with Australia’s co-chair of the G20’s Development Working Group.

Update on Progress – Hobart Development Meetings 5-9 May

The world came to Tasmania in early May, when more than 100 senior G20 officials descended on Hobart to continue important discussions in the lead up to the G20 Leaders Summit in Brisbane in November.

Held from 5-9 May at the Hobart Function and Convention Centre, the meetings encompassed the second Development Working Group (DWG) meeting of the Australian G20 Presidency, a meeting of the Global Partnership for Financial Inclusion and a special forum hosted by the DWG on how the G20 might best contribute to the post-2015 development agenda led by the United Nations.

The meetings focussed on what the G20 can do to improve the lives of the poorest and most vulnerable. G20 officials were busy working on how G20 priorities such as boosting infrastructure investment, combatting tax avoidance and increasing access to financial services can benefit those living in developing countries. While accounting for around 85 per cent of the world's economy, G20 member countries themselves are also home to more than half of the world's poor.

Highlight:  Australia and the G20 – Global Partnership for Financial Inclusion

The Global Partnership for Financial Inclusion (GPFI) is the main implementing mechanism of the G20 Financial Inclusion Action Plan, which was endorsed by G20 Leaders at the 2010 G20 Summit in Seoul. The G20 recognises that access to finance for individuals and enterprises is one of the main pillars of the global development agenda of achieving strong, sustainable and balanced growth.

The GPFI functions as an inclusive platform for G20 countries, non-G20 countries and relevant stakeholders for peer learning, knowledge sharing, policy advocacy and coordination.

Spearheading the implementation of this work are the three key Implementing Partners: the Alliance for Financial Inclusion (AFI), the Consultative Group to Assist the Poor (CGAP) and the International Finance Corporation (IFC). The World Bank joined the GPFI as an Implementing Partner in 2012, followed by the OECD in 2013.

Two new implementing partners were joined to the GPFI at the May 5-6 meeting in Hobart, Australia:

During Australia’s G20 presidency the GPFI will update the Financial Inclusion Action Plan to focus on innovation and emerging technologies, remittances and other payment systems, women’s economic empowerment and strengthening engagement with the private sector.

The GPFI will also continue its work program through its subgroups:

Listen to the Australian co-chair of the GPFI talk about the work of this group, why Australia is involved and its priorities for 2014:

Banking the un-banked: G20 works to bring world's poorest into global economy

Hobart, 5-6 May, 2014

More than half the world's adult population (approx. 2.5 billion people) has no access to bank accounts or loans, and no insurance policy to cash in when crops fail or natural disasters hit. For the poorest and most vulnerable, access to financial services provides the only sustainable path out of poverty. These services allow them to save, set up businesses and help to secure incomes.

In 2010, in the wake of the global food, fuel and finance crisis, G20 Leaders endorsed the G20 Financial Inclusion Action Plan. This was followed by the establishment of the Global Partnership for Financial Inclusion(GPFI), an inclusive platform for G20 countries, non-G20 countries and relevant stakeholders for peer learning, knowledge sharing, policy advocacy and coordination. In 2013, the G20 extended the GPFI's mandate to look at how to reduce the costs of remittances, making it easier and cheaper for migrants to send money home to their families in developing countries.

Meeting in Hobart, the GPFI reviewed work to date and focused on how new technologies (such as mobile banking and other innovations) could help advance progress in many developing countries. Delegates also considered how the GPFI could help lower the cost of money transfers, which can attract fees of more than to 30 percent in low-income countries, and improve the availability of remittance services, including from non-bank remittance providers.

Members of the GPFI meeting in Hobart

Australia's GPFI co-chair Rebecca Bryant said remittances were an increasingly important financing flow for developing countries, accounting for up to six per cent of their gross domestic product and more than three times the value of aid (official development assistance).

"Remittances are an increasingly large source of financing for millions of recipient families and businesses in developing countries, with the total sent in 2013 equal to more than $400 billion," Ms Bryant said.