Leaders of different nations are sitting at tables, some with headphones on and with their countries’ in front of them. The third session of the G20 Leaders' Meeting in Rio de Janeiro, Brazil last month. South Africa took over the G20 presidency from Brazil on Sunday. Picture: AFP
South Africa’s presidency of the G20 is an opportunity for the country to push for progress on policy areas crucial to the continent’s development, although this will be complicated by polarising trade wars, conflict and diplomatic tensions.
The G20 consists of many of the world's largest developing and developed economies, and South Africa’s presidency comes a year after the African Union was admitted as a permanent member of the G20.
The United States will take over in December next year under the leadership of Donald Trump, whose administration has already threatened to introduce restrictive trade tariffs on China, Canada and Mexico.
Member countries also hold polarising views on the conflict between Russia and Ukraine and Israel and Palestine, with fears that this will complicate the G20’s mission to tackle pressing global economic and financial issues.
South Africa assumed the presidency on Sunday taking over from Brazil and President Cyril Ramaphosa yesterday said a key obstacle to inclusive growth in developing economies is unsustainable debt.
He said that for these countries, including many in Africa, this is an unsustainable level of debt that limits their ability to invest in infrastructure, healthcare, education and other development needs.
“Building on G20 initiatives undertaken in recent years, we will seek to advance sustainable solutions to tackle high structural deficits and liquidity challenges and extend debt relief to developing economies.
“We will also seek to ensure that the sovereign credit ratings are fair and transparent and to address high risk premiums for developing economies.”
He said the outlook for global economic growth remains subdued and many economies carry the burden of unsustainable levels of debt.
“Across the world, billions of people are affected by underdevelopment, inequality, poverty, hunger and unemployment.
He said geopolitical instability, conflict and war are causing further hardship and suffering.
“This is all happening at a time of great technological change, which presents both opportunities and risks.While the challenges we face are common, their causes and consequences are unevenly distributed across and between countries,” Ramaphosa said.
He said South Africa would also prioritise the climate change crisis, which he said is worsening.
However, there are already challenges to this as Trump has rejected the scientific debate on the impact of human activity on climate change and has vowed to take apart the previous administration’s climate-related policies.
Ramaphosa has invited Trump on a state visit next year where the key challenges facing developing economies are expected to be discussed.
“We must seek to avert the worst effects of climate change and to preserve our planet for future generations; we must mobilise finance for a just energy transition and seek to secure agreement on increasing the quality and quantity of climate finance flows to developing countries.
“This would include strengthening multilateral development banks, enhancing and streamlining support for country platforms such as the Just Energy Transition Partnership and more effectively leveraging private capital.”
Laura Rubidge, a foreign policy researcher at the South African Institute of International Affairs, said Ramaphosa would push one of Africa's main priorities, the debt issue, but would have to be pragmatic about what can be done within a year.
“It is about laying the seeds for what can be reaped in the future years and obviously thinking about who is taking over in the following year.
“I think the country will use the G20 presidency to create some kind of sufficient consensus of what they have been trying to push now and then bring that into the broader platforms.”
Another international relations expert, Unisa Professor Emeritus of International Law Andre Thomashausen, said Trump is unlikely to consider whatever South Africa might want to suggest as his “absolute priority is the well being of his American voters and everything else will be secondary”.
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