What the developing world needs to see emerge from the G20 summit.
Too few of the many words written about the G20 have focused on the poor. According to a report by ActionAid and the Overseas Development Institute, the global downturn will cost developing countries €566 billion in lost output.
First, the G20 should agree upon a stimulus package for poor countries. Billions are needed but the package would almost pay for itself by boosting exports from developed countries and lifting global growth. Furthermore, the rescue packages for banks have shown that many billions can be found.
Last week, the International Monetary Fund put things into perspective by reporting that financial bail-outs have so far cost the equivalent of 154 years of aid provided to countries by the Organisation for Economic Co-operation and Development.
The G20 must also take this chance to make the financial system work better for the poor. They must start by moving to reform financial institutions to make them more representative and remove toxic free-market conditions from their lending.
Finally, the G20 need to work on specific measures to combat tax avoidance and tax evasion. The G20 has a chance to lift the secrecy that veils tax havens so that developing countries can claim back some of the tax they are owed.
If these three points are not in the G20’s closing communiqué, the world’s leaders will have failed the poor.