Editor’s Note: The 19th G20 Summit is held in Rio de Janeiro, Brazil from November 18-19, 2024. In a time of change and turbulence, how will the G20 work to improve global economic governance and drive global growth? What role will emerging economies like China and Brazil play in advancing multilateralism and international cooperation? Marcos Cordeiro Pires, Professor of International Political Economy, São Paulo State University, Brazil, shares his insights into these issues in an interview with China Focus. The excerpt of the interview follows:
China Focus: The theme of this year’s summit is “Building a Just World and a Sustainable Planet.” In your opinion, how has the G20 advanced the governance of the international economic system?
Marcos Cordeiro Pires: First of all, it is essential to note that the creation of the G20 was initiated by the G7 during the summit in Cologne, Germany, in June 1999. Months later, in December, the group’s first formal meeting took place in Berlin. At that time, the group’s greatest concern was the impact of the financial and exchange rate crises that hit Asia, Russia, Brazil, and other countries on the system’s periphery. Between 1999 and 2008, the forum brought together only the ministers of economy and the presidents of central banks from the 19 largest economies in the world, plus the European Union.
The G20 sought to coordinate actions to mitigate the effects of financial globalization’s instability. Neoliberalism was the predominant vision in the group’s proposals, such as the elimination of restrictions on the movement of international capital, the deregulation of markets, the relaxation of labor rights, the privatization of public companies, the defense of intellectual property rights and other private property rights, and the liberalization of global trade. Many side effects of these policies contributed to the great financial crisis of 2008.
Given the enormous coordination challenges, the G20 was elevated to a meeting of Heads of State. New concerns were included in the list of debates, such as taxation at a global level, climate change, women’s rights, Internet management, etc. In practical terms, we can mention the agreements established at the Seoul Summit in 2010, when a timid reform in the distribution of IMF quotas was approved. Other summits facilitated communication between the Heads of State, which is an excellent fact because it creates direct channels of dialogue between nations.
Unfortunately, many proposed actions are not implemented, as the consensus among leaders is not always reached within each country. Taxing billionaires, for example, may receive positive approval from G20 members, but it is unlikely to be approved by the parliaments of most countries, where big business exerts a strong influence on the political system. Another aspect that deserves attention is that the G20 has not taken any action against the paralysis of the WTO Dispute Settlement Body. As we know, the United States government paralyzed the Organization since Donald Trump’s first administration. Without the WTO fully functioning, protectionist policies are becoming the rule, not the exception.
China Focus: With the global economy facing growth challenges, in what areas could G20 members cooperate to promote global economic recovery?
Marcos Cordeiro Pires: The problems affecting the global economy are immense and not just related to economic regulation. The globalization process is facing many difficulties due to protectionist policies and the trade-off between efficiency and security. Within the scope of the G20, the resumption of WTO activities is essential for the normalization of trade relations worldwide.
On the other hand, it is necessary to consider the need to deal with extreme weather events, which, in addition to the dramatic impacts on family lives, cause profound economic damage. In 2024, only Brazil suffered from floods that damaged the country’s South. The large floodplain of the Pantanal suffered from drought and forest fires. Even the Amazon River basin, which concentrates enormous fresh water outside glaciers, faces historic droughts. The extreme climate events hit the Caribbean, Spain, the United States, and India. Therefore, it is essential for G20 countries to take joint action by implementing measures to mitigate global warming and adopting practices to ensure resilient cities.
Finally, combating hunger and poverty is the central theme of the Brazilian presidency of the G20. The launch of the Global Alliance against Hunger and Poverty received unanimous support from participants in the G20 preparatory meetings and will be ratified by the Heads of State who will participate in the Summit. This point is the first on the list of UN Sustainable Development Goals.
The Alliance aims to reach 500 million people with cash transfers and social protection systems programs in low and lower-middle-income countries by 2030. It also plans to expand high-quality school meals to another 150 million children in countries facing endemic child poverty and hunger. Further, with a focus on early childhood and maternal health interventions, the Alliance aims to reach another 200 million women and children from ages 0-6 and includes programs that will seek to get another 100 million people, with a focus on women.
In conclusion, it is not enough to identify the many global needs; practical actions must also be organized to advance initiatives such as the Global Alliance. In this regard, Brazil and China can make a decisive contribution, whether through China’s experience in eradicating extreme poverty, which has improved living conditions for 700 million Chinese, or Brazil’s Bolsa Família Program, which has organized an efficient strategy to identify and transfer income to the poorest families.
China Focus: China is Brazil’s largest trading partner, and Brazil was the first Latin American country to exceed US$100 billion in exports to China. What contributions has Brazil-China cooperation made to the global economy? Could their relationship serve as a model for other Latin American countries?
Marcos Cordeiro Pires: Specifically, regarding the relationship between Brazil and China, it is essential to consider that the strategic partnership, signed in 1993, is based not only on trade but also on political coordination in international forums, a shared commitment to development agendas to overcome poverty and inequality, and cooperation in science and technology. This is a comprehensive partnership between the largest developing countries in the Western and Eastern hemispheres.
It is also worth noting that Brazil is the Latin American country that receives the most direct investment from China, mainly in the energy, mining, and manufacturing sectors. This cooperation has regional impacts. One of the significant bets is the construction of the Port of Chancay in Peru, which is the creation of a sizeable bi-oceanic corridor that will allow the flow of Brazilian production across the Pacific Ocean. In addition, expanding clean energy infrastructure could offer greater competitiveness to South America. Another essential aspect is the advancement of the digital economy, a sector in which China has excellent expertise to advance productivity and improve public management quality.
