G20 Radio Bulletin 86 - The G20 is currently discussing a joint action plan to reduce global economic inequalities
During the Global Economy Working Group meeting, member countries of the forum unanimously acknowledged the pressing need for effective economic policies. The discussions encompassed critical topics including taxation strategies targeting super-rich individuals and the synchronization of social and economic metrics. Listen to the coverage and learn more.
Reporter: The main focus of discussion during the G20 Global Economy Working Group meetings held during the last week of March, in Brasília, included the socioeconomic ramifications of inequalities, public policies aimed at fostering economic growth and equitable income distribution, and international collaboration concerning taxation of super-rich individuals. Cyntia Azevedo, Deputy Head of the Department of International Affairs at Banco Central do Brasil (BCB), noted that the deliberations were productive, with member countries already strategizing on key outcomes for the leaders' summit scheduled for November of this year.
Cyntia Azevedo: The meeting opened in the customary manner, with extensive deliberations on the global economic scenario and the macroeconomic implications of inequality. Addressing inequality stands out as a primary focus of the Brazilian presidency within this global economy group. The discussion was highly insightful, featuring contributions from various countries concerning policy recommendations aimed at tackling inequality, implementing structural reforms, and addressing issues related to the impact of productivity on inequality. Overall, the debate proved to be exceptionally fruitful.
Reporter: Julia Braga, Undersecretary for Macroeconomic Monitoring and Trade Policy at the Ministry of Finance (MF), highlighted that countries expressed their perspectives on integrating inequality as a criterion for crafting economic policies, especially fiscal policies. Julia elaborated that there was a widespread agreement that such measures should prioritize sustainable growth and equitable income distribution.
Julia Braga: Considering the distributional aspect of growth is crucial. Growth rates of 3%, 4%, 5% that primarily benefit the affluent segments of society differ significantly from growth rates of 3%, 4%, 5% that have broad societal benefits. Thus, there was consensus on recognizing the significance of addressing inequality. Various measures exist to tackle inequality, encompassing both income disparities and addressing disparities among the wealthiest individuals at the top of the social hierarchy, i.e., the millionaires.
Reporter: The experts highlight that the Working Group receives support from international organizations in its endeavor to identify global indicators on inequalities, even throughout Brasil's tenure in the G20.