G20 Hangzhou

Re-igniting the engine of growth through innovation

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The recently concluded G20 meeting of the world's greatest leaders in Hangzhou, China, has turned the rhetoric calling for fiscal discipline on its head. The major powers said that innovation should be an "engine of growth" to revive the global economy.
 
D’Typically at such summits, leaders call for monetary easing and spending cuts to support a global economy at half-mast. On Monday the G20 called instead for greater reliance on public spending. At a time when the global economy remains mired in the crisis, the G20 for the first time puts innovative growth high on its agenda.
 
As the host country of this year's G20, China chose to focus the summit on the theme "Towards an innovative, reinvigorated, interconnected and inclusive global economy".
This theme clearly set out the path that growth in the world economy should follow and encouraged countries "to seize the historic opportunities offered by the new technological and industrial revolution", in the words of the statement of Chinese opening.
 
According to the final communiqué of the Hangzhou summit, this public spending policy would boost innovation to become an "engine of growth". « Our fiscal strategies are just as important (as monetary policy). We are making fiscal policy and public spending more supportive of growth. ", said the French version of the statement, while Chinese President Xi Jinping called for " rekindling the engine of growth through innovation ".
 
The G20 leaders no doubt observed that the momentum generated by the latest scientific and industrial revolution is losing momentum and that the growth potential of the traditional economic system and development model is diminishing. On the Chinese side, the credo for innovation is clearly stated: "History has shown us that the dynamism and creativity resulting from institutional reforms and the new industries and products brought about by scientific and technological progress are indispensable for the recovery of the world economy, which has been shaken by crises. Fully aware of the obsolescence of the old growth model, China is shifting to a development model characterized by innovation, coordination, green economy, openness and sharing," he said.. »
 
At the same time, the world's largest economies have agreed to "to oppose protectionism "said Xi Jinping. « We are committed to revitalizing international trade and investment. ", he added. IMF Managing Director Christine Lagarde said that the G20 is determined to fight "the global financial crisis". populist attacks The government has also been working "against globalization by placing greater emphasis in its speeches on the benefits of world trade for the population. The IMF managing director has responded to speeches challenging international trade agreements such as the TAFTA, particularly in the United States, where Republican candidate Donald Trump, but also his Democratic rival Hillary Clinton, have said they are opposed to the ongoing negotiations for a free trade treaty between the United States and the European Union.

READ IN UP' : Is the TAFTA really dead and buried?

 
With AFP
 

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