Source: Nikkei Chinese website
Author: Kato Crystal also
The Seventh -way Group (G7) Finance Minister and the Central Bank President Meeting, which closed on May 13, discussed issues such as China with digitalization, climate change, and increasing influence.On the issue that developed countries cannot be solved, cooperation with emerging market countries has been advocated.The G7, which has always been leading the world economy, is being forced to turn to a "cooperative" in changes in global structure.
The main topic at this meeting is the ideal state of responding to financial supervision and supervision in the digital age.In the discussion on May 12, the participants said that "strengthening the financial system is the top priority."On the occasion of Silicon Valley Bank (SVB) in March, funds flowed out through online banking.
The statistics of the US Federal deposit Insurance Corporation (FDIC) show that in American families with bank accounts, the proportion of "mobile banking" based on applications such as smartphones rose from 15.1%in 2017 to 43.5 in 2021%.Fund transfer becomes easier.
If the financial system spreads, it will also affect the economy of emerging market countries.When the Silicon Valley Bank went bankrupt, funds flowed out of emerging market countries.The spread of information spread on social media (SNS) exacerbates uneasy side.
On the other hand, there are also many sounds that emphasize the current financial system.It implies the intention that does not want the uneasiness of the United States and Europe.
The emphasis on financial ministers of various countries attach attention to the comments of cooperation with emerging market countries and developing countries."Not only G7, but also partners other than G7, which are gathered here, have a common goal outside the G7, which are gathered here," US Finance Minister Yellen said at the press conference.
Its background is a change in the world economy and geopolitical structure.As of 1990, G7 accounted for 70 % of the world's GDP (GDP), but now only about 40 %.This is because emerging market countries such as China and India have risen.
The status quo is the largest economy in the United States and the second place in China for dominance.Due to the invasion of Ukraine, the cracks of Russia and Western countries have also expanded significantly.
In Western countries, the situation represented by manufacturing and seeking to change the situation of excessive dependence on China has strengthened.However, relying on the limit of the G7 alone, a framework, including emerging market countries, needs to be established.
This time it proposes to rebuild the supply chain of de -carbonization and renewable energy fields including developing countries and emerging market countries.G7 will provide funds to the World Bank to provide financial support for low -income countries.Japanese finance Nakashi Kunjun said, "It will provide assistance to promote the player of low and middle -income countries."
In response to Russia, countries other than G7 also required countries to cooperate with sanctions and block "loopholes".No matter how strict export control is launched in G7, it is limited.This is because if supplies flow into Russia through third countries or increase trade with Russia, the effect of sanctions will be weakened.
The expansion meeting on May 12 invited India, South Korea, Singapore, and the African Alliance (AU) rotating chairman Guo Moro, etc., to attract emerging market countries.
South Korea's Deputy Prime Minister and Minister of Planning Qiu Qinghao Qiu Qinghao said, "developed countries should share technology and policy experience from developing countries."Huang Xuncai, Deputy Prime Minister and Minister of Finance of Singapore, posted on his social media saying that "it is honored to be able to cooperate and create sustainable future exchange opinions on how developed countries and developing countries."
The Indian Minister of Finance, Sitraman, emphasized the importance of investing in energy transformation, etc., and achieved certain results with the construction of the supply chain.
However, many problems cannot be solved by opposing China and Russia on one side.This is the change of climate change.China is the country with the largest gas emissions of greenhouses in the world, accounting for about 30 % of total emissions.G7 is not as good as China.If China is absent, it is difficult to promote countermeasures to respond to climate warming.
In addition, the debt issues of emerging market countries and developing countries, which are increasingly interesting in the United States and Europe, are similar.Sri Lanka, which was in a state of debt default in May 2022, relied on China's debt.China is the largest debt country for bilateral loans in the country.
The "Paris Club (Main Credit State Conference)" consisting of developed countries such as Japan and the United States and Europe has always dominated debt issues, but the focus is to transfer to emerging market countries including China.
Japan and France held the Council Conference, including India in April, and also called on China to participate.But China only participated as an observer.
At the lunch on the 12th, the Nobel Prize winner of Economics Joseph Stiglitz was invited to discuss an ideal state that cannot be measured by GDP.
Can GDP really bring happiness to people?Participants actively exchanged their opinions and started a "novel discussion" as G7 (Japanese finance Ya Sujunji), but this also reflects the leading role of the G7 that the G7 can no longer play the economy.
