G20 presidency an opportunity to address poverty and inequality

The developing world will close 2024 on a high when Brazil hands over its G20 Presidency to South Africa on Monday, December 2.

As the country navigates through some serious economic challenges, its president, Cyril Ramaphosa will have much to think about in terms of what exactly will be South Africa’s primary objectives as the incoming G20 president.

The presidency does not just speak for South Africa but also represents the African continent as a whole. As the first African country to host the G20 Summit next year, Ramaphosa will have his hands full in ensuring that the interests and concerns of the continent are adequately represented on the global stage.

As things stand, the global economy is facing numerous challenges, including inflation, climate change and inequality. For South Africa, the problem of inequality takes centre stage. The nation’s wealth gap ratio is one of the highest in the world and our people continue to be at the margins of lucrative economic opportunities.

The eradication of poverty continues to dominate government policies, coupled with severe unemployment challenges, as a large section of our society still do not have access to basic services such as adequate healthcare facilities and quality education. In recent years, the G20 has been criticised for not adequately addressing the needs of developing countries.

South Africa’s presidency will have the mammoth task of implementing initiatives that will address some of these challenges and reduce inequality and eradicate poverty. In his address at this year’s summit in Brazil, China’s President Xi Jinping reiterated calls to end global hunger and alleviate poverty. In his address, he urged G20 leaders to elevate their vision beyond temporary setbacks and to view the world as a singular community with shared responsibilities.

“As custodians of history, we must take the initiative to move it forward,” he said, reiterating the mandate of the G20 to work collectively towards the eradication of hunger and poverty.

The 2024 G20 Summit resonated with China’s commitment to global prosperity. This was evidenced by the establishment of the Global Alliance Against Hunger and Poverty which marks a pivotal step in fostering unity and collaborative efforts among nations.

In addressing the challenges of the modern world, Xi articulated the importance of channelling resources into trade, investment, and development efforts, encouraging the dismantling of barriers which restrict co-operation.

In addition, he called for enhanced support for developing nations in adopting sustainable practices while simultaneously tackling pressing issues such as climate change and environmental degradation.

In a post-Summit interview, I also had the pleasure of engaging Laura Carvalho, a renowned Brazilian economist and Associate Professor of Economics at the University of São Paulo.

She is of the view that when South Africa takes the presidency of the G20, Global South leadership will be at the core, and the G20 offers an opportunity to put pressing issues for developing countries on the agenda.

She explained that South Africa’s presidency of the G20 comes at an even more challenging moment, with political shifts taking place across the membership.

“The new Trump administration with its stated America first approach to foreign policy, and the disintegration of the governing coalition in Germany, will add to geopolitical tension. National interests of many countries including in those part of the G20 in the guise of national security played out in different fronts including energy, trade, supply chain regulation, technology, strategic minerals and the like will continue to gain momentum. South Africa’s G20 presidency also comes in the aftermath of CP29’s failure to deliver an adequate commitment on climate finance for the developing countries,” she says.

In view of this, she further highlighted that South Africa had an opportunity to push a progressive agenda that goes beyond the usual finance conversation.

“It can work towards delivering better co-operation around trade, sustainability, technology, and other systemic issues that would facilitate a better integration of developing countries into the global economy and benefiting from it,” she explained.

“South Africa stated its interest to pursue topics related to just energy transition and better governance of resources and particularly the opportunities around critical minerals. South Africa has also announced its plan to focus on inclusive growth, an agenda that can bring together fragmented conversations currently happening on the different crises the world faces including climate change, growing inequality, and poverty.”

Commenting on the Brazilian experience, she revealed that Brazil was successful in taking inequalities within and between countries to the core of the G20 agenda.

She added that in spite of a very difficult geopolitical context, it succeeded in negotiating a commitment by all G20 countries to effectively tax ultrahigh-net-worth individuals, to agree on a concrete roadmap for Multilateral Development Bank (DB) reform to substantially increase concessional lending to developing countries, and to get 82 countries to join the Global Alliance Against Hunger and Poverty.

“On climate, the G20 declaration goes beyond the standard call for climate action and commits to support developing countries in their ambitious green industrial planning and strategies, and to better integrate into the global industrial, value and supply chains. This is the first time the connection between the climate transition and industrialisation in the Global South has been made in a G20 communiqué, and even more prominently, in the experts report of the G20 Task Force on climate. While not enforceable, G20 statements open up room for taking these agendas forward in other multilateral fora and to put pressure on policymakers at the national level,” she said.

In conclusion, the G20 offers a platform and leadership space to set the agenda, convene the most important players and drive ambitious outcomes.

The Brazilian G20 has succeeded in placing hunger and poverty on the table. As an institution borne out of necessity to find solutions for global crisis, the G20 might be a good place to find a global solution for the poverty challenge.

When Ramaphosa launches SA’s G20 Presidency next month, what must be on the table is a long-term and sustainable solution to poverty, and the president must be steadfast in addressing systemic challenges the G20 is known for, including better financing, debt, a fair trading system, co-operation around technology, agriculture, and food systems.

Specific focus must be placed on eradicating poverty and ensuring that no one is left behind in pursuit of a shared future for all mankind, thus ensuring peace, security, prosperity and stability.

Mdluli is currently on a fellowship programme with the China International Press Communication Centre (CIPCC) in Beijing.

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