Made Nagi | AFP | Getty Images BALI, Indonesia — Finance chiefs at the Group of 20 meeting in Bali “strongly condemned” the war in Ukraine and expressed concern about an “alarming increase in food and energy insecurity.” This was according to a statement issued by Indonesia which is hosting the G-20 on Sunday. The group, which met for two days in the island resort of Bali, was unable to reach consensus on several issues and did not issue a joint statement. The previous meeting of G-20 economic leaders in Washington in April also ended without a joint communique. Instead, a statement issued by Bank Indonesia on Sunday summarized the main points of discussion of several rounds of meetings held privately. Specifically, finance chiefs and central bank leaders from the group pledged to fight food insecurity and high prices that continue to “disproportionately” affect vulnerable countries. “Many members agreed that the recovery of the world economy has slowed down and is facing a significant setback as a result of Russia’s war against Ukraine, which has been strongly condemned, and they called for an end to the war,” the Indonesian central agency said in a statement. the bank said. Many members are ready to take immediate collective action on food security, including by collaborating with other initiatives. Bank of Indonesia host of the G-20 “Members noted that existing challenges have worsened, including supply-demand mismatches, supply disruptions and rising commodity and energy prices, which have added to rising inflationary pressures and contributed to the growing risk of food insecurity.” “Many members noted the importance of continued action on climate change, as well as addressing debt vulnerabilities,” it said. All members at the meeting — which almost included Russia and Ukraine — pledged to use all available policy tools to address the food crisis. However, there was no indication that commitments were made to avoid future sanctions against Russia involving food and essential supplies. The upheaval of supply chains during the pandemic – now exacerbated by the Russia-Ukraine crisis – has delayed and limited the delivery of food, fertilizer and fuel to many parts of the world, including countries in Africa and the Middle East. “Many members are ready to take timely collective action on food security, including by cooperating with other initiatives,” the statement said. By and large, all G-20 central banks agreed to tackle inflation and calibrate monetary policies that would limit rising prices.
From climate change to digital currencies
Central bank chiefs and finance ministers also reaffirmed their commitment to getting the Covid-19 pandemic under control. “We welcome the establishment of an Interim Financial Fund (FIF) for Pandemic Prevention, Preparedness and Response as developed by the G20 Joint Group on Finance and Health and hosted by the World Bank,” the statement from Indonesia said. The FIF — funded voluntarily by members — will ensure adequate, sustainable and better coordinated funding to respond to the pandemic. Climate change was discussed and members pledged to meet their COP26 commitments to achieve carbon neutrality and net zero goals. The group promised to phase out and rationalize, in the medium term, “inefficient fossil fuel subsidies that encourage wasteful consumption”. “We continue to remind and reaffirm the commitment made by developed countries to the goal of jointly mobilizing $100 billion in climate finance annually by 2020 and annually by 2025 to address the needs of developing countries, in the framework of meaningful actions mitigation”. the statement said. The group recognized that progress has been made in the use of digitization in financial transactions worldwide and agreed to make efforts to combat money laundering and terrorist financing. “We welcome the ongoing discussions on Central Bank digital currencies, as these may be designed to facilitate cross-border payments while maintaining the stability of the international monetary and financial system,” the statement said.
