Managing Director of the IMF urges Action to Deliver on G20’s Hangzhou Commitments
OREANDA-NEWS. Ms. Christine Lagarde, Managing Director of the International Monetary Fund (IMF), issued the following statement at the conclusion of the Group of 20 (G20) Summit in Hangzhou, China:
"I would like to warmly congratulate President Xi and the Chinese authorities on their leadership of the G20 this year and their excellent organization of the Leaders Summit meeting in the beautiful city of Hangzhou.
“We met against the backdrop of a global landscape characterized by major economic and technological shifts, and by growth that has been too low for too long--and which has benefitted too few. Through the Hangzhou Action Plan, the G20 leaders expressed their determination to address these challenges with a set of forceful policy actions.
“A first priority is a coordinated effort to raise growth. The G20 agreed that this will require making full use of all policy levers--monetary, fiscal, and structural--individually and collectively. The G20 also agreed to identify and prioritize reforms that provide the biggest growth impulse for each country, which is an area where the IMF is actively engaged. Pushing back against protectionism and pushing forward with free and fair trade is a vital component of this growth agenda.
“A second priority is a commitment that growth must be more widely shared. Again, countries should deploy proven tools to reduce excessive inequality and raise economic prospects, particularly for low-income groups and workers affected by rapid technological change--for example, through skills training and investments in education and health. We need increased growth, but it must be better balanced, more sustainable, and inclusive so as to benefit all people.
“The G20 endorsed several initiatives underway to support the stability and resilience of the international financial architecture. This included support for further strengthening of the global financial safety net, with an adequately financed IMF at its center and equipped with a more effective toolkit. This would also involve even greater cooperation between the IMF and regional financing arrangements, such as the Chiang Mai Initiative.