World Economy

G20 Summit to Focus on Promoting Growth

G20 Summit to Focus on Promoting Growth G20 Summit to Focus on Promoting Growth

World leaders are arriving in Australia for the G20 summit in the Queensland city of Brisbane. The two-day summit, the ninth meeting of the G-20 heads of government, attended by the US, Chinese and Russian leaders among others, will focus on promoting growth.

The challenge for G20 leaders is clear – to lift growth, boost jobs, strengthen financial resilience and to ward off the deflation that threatens the major economies of Europe, BBC reported.

Leaders are expected to expand on plans agreed in February at the G20 finance ministers’ meeting to boost global economic growth by 2% in five years. Tax avoidance by major multinationals will also be discussed.

But the Organization for Economic Cooperation and Development (OECD)cautioned that if such a level playing field is achieved, it will only make competition heat up to attract revenue from digital companies like Apple and Google as tax havens are shut down, AFP said.

Leaders of the world’s most powerful economies want to ensure companies pay taxes where they make their profits, instead of using complex financial structures that allow them to slash their liabilities, depriving governments of billions in revenue.

  Putin Berates US

President Vladimir Putin accused the United States on Friday of undermining the very trade institutions it created by imposing sanctions on Russia, a “mistake” he hoped would be overcome in the “final count”.

In an interview with Russian state news agency Itar Tass before a meeting of the G20 major and developing economies, Putin said sanctions imposed by the United States and the European Union on Russia over Ukraine harmed not only Russia, but the global economy as a whole.

The Russian leader said the asset freezes, visa bans and measures preventing Russian companies accessing Western financial markets and technology went against international law because only the United Nations had the right to impose them.

They also went against trade agreements, including the General Agreement on Tariffs and Trade, which the United States created, he said.

“The United States itself created that organization at a certain point. Now it is crudely violating its principles,” he said. “I do hope... that in the final count, the awareness of this will prevail and bygones will be bygones.”

Putin said he would not bring up sanctions at the G20 meeting, which starts on Saturday in Australia, as “it’ll make no sense”.

  Turkey to Takeover

 Turkey aims to use its approaching presidency of the G20 to promote its image as a global economic power and alleviate a sense of a country increasingly isolated on the world stage and buffeted by conflict on its southern frontiers.

Ankara takes over the G20 presidency in December, its relations with Washington and Europe strained by its reluctance to take a frontline role against Islamic State militants in Syria and Iraq. President Tayyip Erdogan’s tightening grip on power has also raised concern in Europe and the United States.

Deputy Prime Minister Ali Babacan, in charge of the economy and one of the figures spearheading Turkey’s G20 strategy, said tackling sluggish global growth and increasing the voice of low income countries would be among Turkey’s priorities.

“During its term as G20 chair, Turkey will become a bridge between the low-income, emerging countries and developed nations. Our aim is to enhance the interaction,” he told Reuters in emailed comments, en route to the G20 summit in Brisbane.