The G7 Economic Resilience Panel has called for significant changes in economic governance to better prepare global economies for the next crisis.
Britain’s G7 chaired by the Prime Minister boris johnson Lord Sedville, former cabinet secretary and national security adviser, as chairman of an independent G7 panel on economic resilience.
The panel, consisting of eight experts appointed by G7 leaders, was asked to report on the challenges of the global economic system and assess policies to strengthen resilience against future shocks.
Lord Sedville presents preliminary set of panel recommendations to the G7 at a summit cornwall in June and this latest report aims to inform discussions on the upcoming G-20 Leaders’ Summit and Cop26 Climate Dialogue in Glasgow.
Key recommendations of the panel include:
Promote international and domestic investment in economic resilience to deliver the new infrastructure and research needed to respond to the challenges of the coming decade.
– Ensuring that international trade rules enable the green transition by demonstrating leadership by the G7 and allies through small agreements and alliances within WTO membership
Committed to information sharing, locating and improving environmental, social and governance for minerals critical to the green transition.
Lord Sedville said: “Globalization has seen the greatest increase in prosperity and reduction in poverty in human history. But the Fourth Industrial Revolution, the rise of China, and environmental, economic and geopolitical events have overtaken global economic governance.
“Economic resilience is delivered by good governance, diversification, co-dependence and public-private partnerships within open and integrated global markets.
“The ‘Cornwall Consensus’ reflects that insight and recommends investment, and inclusive governance, to meet the challenges and opportunities of the mid-21st century.”
Preparing for the next crisis requires a radically different approach to economic policy and international cooperation.
Climate change, loss of biodiversity and the next health crisis are set to destabilize domestic and global economies, the report said.
It further added: “Preparing for the next crisis requires a radically different approach to economic policy and international cooperation. The decade of 2020 is an important decade for building economic resilience.
“With the first in-person meeting of G7 and G20 leaders since the start of the pandemic, we have the opportunity to learn many lessons from each other’s responses to the respective shocks.”
Panel member Thomas Weiser, former chairman of the Euro Working Group and the European Financial Committee, said: “The The European Union The pandemic is relatively well-tended, but it is a wake-up call: internal and external disruptions to established ways of life, trade, travel and production have shown the fragility of national and global systems.
“The recommendations of our G7 Panel on Economic Resilience provide a clear road map towards global cooperation and a new socially and ecologically responsible way of governing open societies.”
Another panel member, Professor Thomas Philippone, economic adviser to the French President Emmanuel Macron Added: “Free market, pro-growth views formed the ‘Washington Consensus’, but the challenges before us – from climate change to global health – require a set of new principles to guide and promote policymakers It is a common commodity.
“The ‘Cornwall Consensus’ is our contribution to this ongoing effort.”