G20-OECD Task Force Holds Meeting on Investment
Under Saudi Arabia’s current presidency of the G-20, a meeting of the G20-Organization for Economic Cooperation and Development (OECD) Task Force on Long-term Investment was held recently. The virtual meeting aimed at promoting global infrastructure investment.
It may be recalled here that ‘The Group of Twenty’ (better known as G20), is a premier forum for international economic cooperation. It brings together the leaders of both developed and developing countries from every continent.
G20 members collectively represent around 80% of the world’s economic output, two-thirds of global population and three-quarters of international trade. Throughout the year, representatives from G20 countries gather to discuss financial and socioeconomic issues.
The attendees of the meeting discussed the importance of collaborating with institutional investors and asset managers to generate and promote investment. This is crucial in order to be able to meet the infrastructure financing gap which has been growing wider with the spread of the COVID-19 pandemic.
G20’s Infrastructure Working Group and some other G20 bodies work to address long-term financing and infrastructure funding issues. The G20-OECD Task Force aims to advance their work.
The impact of the COVID-19 pandemic has been severe and can be observed all across the globe. The entire world is on a standstill. Apart from the health dimension, it holds particularly true for the global economy. All economies of the world have suffered major setbacks and investments are declining, leading to the financing gap as mentioned earlier.
The current economic scenario, thus, calls for enhanced cooperation and coordination between the public and private spheres. Efforts are needed now, more than ever before, to explore all available methods of securing private investment in infrastructure. Realizing this, in order to improve the climate for investment, Saudi leaders along with OECD are proactively interacting and following up with investors, asset owners and managers to be able to appreciate their point of view. The group is also trying to understand clearly the key issues and challenges to be able to come up with a set of recommendations. This could pave the way for future investments that can propel growth.
During this uncertain time, the various meetings of the G20, including that of the Finance Ministers, have been able to achieve some milestones. The recent announcement on debt relief agreement, which is a case in point, comes as a big boost for the developing countries.
Difficult times require redoubled efforts. With concerted efforts by all stakeholders, the global economy is expected to bounce back soon. It will show signs of growth for sure.