In a new Lowy Institute policy brief, G20 Studies Centre Director Mike Callaghan urges the development of a comprehensive G20 growth strategy outlining how member countries will work together to lift global growth and create jobs.
‘Australia’s priority for the G20 in 2014 is to help restore global growth and create jobs. This will require a comprehensive and agreed growth strategy. The G20 currently lacks such a strategy’, said Mike Callaghan.
In The G20 needs a growth strategy, Callaghan highlights the G20’s struggle to deliver a clear consistent message about how its members are or should be cooperating to restore growth. Australia, as the 2014 chair of the G20 and host of the Brisbane Leaders Summit, has an opportunity to rectify this problem by formulating a meaningful growth strategy.
Callaghan argues that alongside a comprehensive G20 growth strategy, each G20 member should release its own national growth strategy for public comment prior to the Brisbane Summit. Callaghan argues that directly engaging the public will create domestic pressure on G20 members to implement their policy commitments.
‘All leaders need to be directly involved, take ownership of the growth strategy, and be accountable for its implementation. The public need to be involved. For example, it is only appropriate that the Australian public have the opportunity to comment and provide input into the strategy to lift growth in Australia before it is presented at the Brisbane Summit’, said Callaghan.
Callaghan emphasises that the growth strategy should be comprehensive incorporating all aspects of policy − fiscal, monetary, financial, structural, tax, trade and development. Importantly, it should move away from a focus on rebalancing global growth and reducing external imbalances and embrace the reforms needed to lift potential growth in all countries.