The importance of a new economic governance is a central theme in the international debate, especially in a period characterized by unprecedented economic and financial challenges.

These challenges include:

  • Ecological Transition and Climate Crisis:

Global warming and its irreversible impacts represent a huge challenge. An increase in temperatures of 1.5°C is expected in the next 20 years, with consequent risks to the safety of the world’s population. According to EY’s analysis, geopolitical uncertainty and the energy crisis have led to a slowdown in global economic growth, expected to be 1.3% in 2023.

  • Digital Transition and Technological Hyperconnectivity:

Technology offers opportunities for the development of new business models, but it can also increase social inequalities and put fundamental rights at risk. Klaus Schwab, founder and executive chairman of the World Economic Forum, has emphasized the importance of adopting new models and renewing cooperation to face these challenges.

  • Crisis of Democracies and Demographic Growth:

The crisis of democratic institutions and the increase in population influence economic and social stability.

  • Political and Regulatory Instability:

Companies must navigate a context of increasing competition, market fluctuations, changes in consumer preferences, and the ongoing impact of the pandemic.

  • Supply-Side Bottlenecks Post-Pandemic:

Global supply difficulties and the effects of the COVID-19 pandemic have created uncertainties and slowed economic growth.

  • High Borrowing Costs and Underinvestment:

Developing countries face high borrowing costs and there are insufficient investments in global public goods.

  • The Spread of Digital Currencies, Both Private and Public:

The current international monetary system may face a revolution in payment systems with the redefinition of power relations in the monetary and financial field at a global level.

The G20 plays a crucial role as the main forum for international economic cooperation, bringing together the world’s major economies to address issues ranging from financial stability to sustainable growth.

Institutionalized as the main forum for global economic and financial cooperation after the 2008 financial crisis, it has become increasingly relevant, representing over 80% of global GDP and 75% of world trade.

This group of nations (Saudi Arabia, Argentina, Australia, Brazil, Canada, China, South Korea, France, Germany, Japan, India, Indonesia, Italy, Mexico, United Kingdom, Russia, United States, South Africa, Turkey, European Union, actual members, and Spain, permanent guest) has the responsibility not only to lead the economic recovery but also to promote policies that ensure balanced and inclusive growth.

The G20 has the task of meeting the expectations of emerging and developing countries, promoting peace and development.

The G20 summit has recognized that the need to reform the economic governance framework is evident, as demonstrated by recent analyses that emphasize the importance of focusing on debt reduction and the transparency of economic policies and has highlighted crucial issues such as wars, sustainable growth, and financial sector reform.

Global economic governance requires a coordinated and integrated approach that takes into account the different economic and social realities of member countries.

The G20, with its ability to influence economic policies, has the power and responsibility to guide this process.

Its action can contribute to stabilizing financial markets, promoting sustainable investments, and reducing inequalities.

The inclusion of the African Union as a permanent member of the G20 is a significant step towards broader representation and more inclusive cooperation.

In conclusion, the G20, as a forum for international economic cooperation, plays a fundamental role in addressing current and future challenges, and its decisions will have a significant impact on the future of the world economy.

Its leadership and ability to adapt and respond to the needs of the times are crucial to ensuring sustainable and inclusive growth.

Now more than ever, it is imperative that the United Nations under the aegis of the G20 act with determination and foresight, not only to navigate through the turbulent waters of the current economic landscape but also to chart a course towards a horizon of balanced and inclusive growth.