The G20 Summit will not have direct effects on the Brazilian or global economy, but the discussions raised during the event could affect the design of economic policies in the long term, say economists interviewed by CNN.
Presiding over the G20 this year, Brazil will coordinate discussions on important topics for the global economy, such as taxation of large fortunes, digitalization of governments and expansion of the supply of credit in international organizations.
The Summit that brings together the twenty largest economies in the world will take place between the 18th and 19th of November, in Rio de Janeiro.
In total, there will be 271 activities including debates, conversations and thematic tables organized by social movements, engagement groups, international organizations, councils, universities, governments, the private sector, among others, from Brazil and abroad.
Mauro Rochlin, economist at Fundação Getulio Vargas (FGV), says that the summit will not have direct or short-term effects on the economy, despite addressing important topics for the formulation of public policies.
“We will not see developments in the job market, GDP or inflation. The discussions are related to agendas defined by the presidency and how they can be implemented to help the global economy”, he explains.
The economist highlights that the event’s debates are expected to lead to cooperation to promote equal development between developed and emerging countries.
“The relevant impact of the event will only be felt in the medium to long term”, he highlights.
Henrique Dau, executive director of the Fernand Braudel Institute of Economics, states that economic impacts will only be felt if there is cooperation and commitment from summit members to the debates and their conclusions.
“Originally it was a meeting to discuss investments and efforts in the economy, including trade agreements, and ended up adding social agendas. The emergence of leaders who question this model of cooperation means that the outcome of the summit depends on commitment”, he explains.
The executive director believes that discussions that discourage protectionism are in focus at this G20 summit.
Carlos Primo Braga, associate professor at Fundação Dom Cabral (FDC), adds that the event, as well as the agenda defined by the Brazilian presidency, focuses on promoting greater government participation in developments in global governance.
According to him, this positioning aims for greater participation in world bodies and reflects the search for changes in the structure of distribution of economic power.
“An example is the search for greater representation in terms of quotas, whether in the World Bank or the International Monetary Fund, which are typically topics that the presidency is very prepared to discuss”, he explains.
