The Korea Times close
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
Business
  • Tech
  • Bio
  • Companies
Finance
  • Companies
  • Economy
  • Markets
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
Entertainment
& Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
Sports
World
  • SCMP
  • Asia
Video
  • Culture
  • People
  • News
Photos
  • Photo News
  • Darkroom
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
Finance
  • Companies
  • Economy
  • Markets
Wed, May 25, 2022 | 04:16
G20 and global governance
Posted : 2013-09-29 16:28
Updated : 2013-09-29 16:28
Print Preview
Font Size Up
Font Size Down
By Mauro Guillen and Emilio Ontiveros

While the last summit meeting of the G20 in St. Petersburg was overshadowed by the conflict in Syria and how to react to it, governance of the global economy and financial system were at the top of the agenda. The G20 has not always made relevant decisions, but it has worked as the only coordinating forum dealing with the fallout from the crisis.


The G20 was born at the request of the G7 back in 1999, when the world was confronting the beginning of an episode of global financial turmoil in the emerging economies.

Its importance has grown since then, and it has served as a way for Brazil, Russia, India and China (BRICs) to become more actively involved in setting the global agenda and working out solutions to pressing problems.

One of the initiatives of BRICs has been to create a $100-billion fund to stabilize currency markets. This is a timely development in the wake of the likely tapering of the U.S. monetary stimulus, which has strengthened the dollar while putting downward pressure on other currencies, especially the Indian rupee.

Emerging economies are concerned about the potential departure of the massive funds that have reached their shores during the three rounds of quantitative easing implemented by the Federal Reserve.

The other relevant outcome from the G20 meeting had to do with international fiscal issues. Tax avoidance by multinational firms operating across borders, while legal in most cases, has introduced major distortions in international capital flow and deprived cash-strapped governments of much-needed revenue.

The public is increasingly sensitive to tax hikes. Reports about aggressive tax planning practices by household brand names have become a political issue.

G20 has essentially agreed to support the Action Plan formulated by the Organization of Economic Cooperation and Development, whose members include the world's most developed countries. The intention is to level the playing field by reducing tax avoidance and simultaneously lowering the corporate tax rate for all companies. New regulations will tax profits in the country in which the profit-generating activities take place. The case of taxing the mobile telecommunications sector has figured prominently on the agenda.

Other topics were also discussed, especially those concerning financial reforms aimed at reducing the too-big-to-fail problem, enhanced transparency, and shadow banking. The credibility of the G20 hinges on delivering results that go beyond a mere declaration of good intentions.

The global economy needs a legitimate body in which important topics beyond the control of single governments can be debated and solutions adopted. Now it is the turn of governments to facilitate the implementation of the agreements reached in St. Petersburg.

 
  • 75th Cannes Film Festival
  • Attention needed to end modern-day slavery
  • [INTERVIEW] How brewery waste turned into pizza dough, energy bars at RE:harvest
  • Ex-Gyeryong mayor found dead after losing nomination in local elections
  • Labor union opposes resumption of late-night subway operations
  • Gov't to ease tax burden that increased during previous administration
  • Mother charged with killing disabled daughter
  • [ANALYSIS] Internet-only K bank pressed to delay IPO plan
  • Samsung to invest 450 trillion won to cement lead in chip, bio sectors
  • Japan hosts Quad summit seeking unity on countering China
  • 'GOT7 has not disbanded' 'GOT7 has not disbanded'
  • Hollywood blockbuster sequels poised to hit theaters, streaming platforms Hollywood blockbuster sequels poised to hit theaters, streaming platforms
  • Girl group NiziU to begin 1st Japanese tour Girl group NiziU to begin 1st Japanese tour
  • Actor's short film 'Dark Yellow' nominated for Asia competition at Japan's film festival Actor's short film 'Dark Yellow' nominated for Asia competition at Japan's film festival
  • 'The Roundup' lures 2.5 million moviegoers over weekend 'The Roundup' lures 2.5 million moviegoers over weekend
DARKROOM
  • 75th Cannes Film Festival

    75th Cannes Film Festival

  • People in North Korea trapped in famine and pandemic

    People in North Korea trapped in famine and pandemic

  • 2022 Pulitzer Prize: Bearing witness to history

    2022 Pulitzer Prize: Bearing witness to history

  • Worsening drought puts millions at risk

    Worsening drought puts millions at risk

  • Our children deserve the best

    Our children deserve the best

The Korea Times
CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Location
  • Media Kit
  • Contact Us
  • Products & Service
  • Subscribe
  • E-paper
  • Mobile Service
  • RSS Service
  • Content Sales
  • Policy
  • Privacy Statement
  • Terms of Service
  • 고충처리인
  • Youth Protection Policy
  • Code of Ethics
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group