G-20 remains an effective forum to address global challenges even without Russia’s active participation, says Yellen

US Treasury Secretary Janet Yellen on Friday said that G20 has been effective even without Russia’s active participation. She also offered help to draft a communique at the end of G20 Leadership Summit under India’s Presidency taking place in the national capital.

“I believe the G-20, in spite of obvious problems due to Russia’s war against Ukraine, and Russia’s general absence from G-20 initiatives, I believe that G-20 has been extremely effective, and especially under India’s leadership. Our goals for the G-20 have coincided closely with those of India and we have tackled very important challenges,” Yellen said while addressing a press conference here after her arrival to take part in the summit. Russian President Vladimir Putin is not coming to take part in leadership summit and his country will be represented by Foreign Minister Sergei Lavrov.

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Apart from Putin, Chinese President Xi Jinping is also not coming. There have been reports that because of differences over wordings on Russia-Ukraine war and also on Black Sea issue affecting food grain prices, the leadership summit, there could be issues in finalising communique.

Yellen also admitted that drafting a communique would be challenging. But she said: “I know the negotiators are discussing it, and working hard to do so and we stand ready certainly to work with India to try to craft a communique that successfully addresses this concern.”

Further, Yellen said that she will seek to build G20 support for an “equi-proportional” increase in IMF quota funds paid-in by member countries, which would increase IMF lending resources, but not immediately change its shareholding structure. She also said that there was significant progress made on international debt relief efforts.

“International debt and providing relief to countries that are overindebted partly because of the impact of Russia’s war against Ukraine, but also the high interest rate environment, I believe we’re beginning to make significant progress there. So, I do see the G20 as a very effective forum,” she said while adding that the US has asked the US Congress for permission to lend $21 billion to IMF trust funds, including one for the poorest countries, which “desperately needs more resources.”

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Lending resources

She highlighted progress on efforts over the past year by the World Bank and other multilateral development banks to vastly expand lending resources and help tackle climate change, pandemics and other global crises. Near-term balance sheet changes under consideration could unlock an additional $200 billion over the next decade, she said.

More resources could come from medium-term steps recommended by a G20 capital adequacy review, including the use of callable capital that is pledged, but not paid-in, to back lending. “Those are crucial additional resources for reducing poverty, advancing global health security and combating climate change,” Yellen said.

The US Treasury chief also said she will work to strengthen international support for Ukraine at the G20 gathering, saying it was “critical that we continue to provide timely economic assistance” through such measures as the IMF’s $15.5-billion Ukraine loan programme and the European Union’s proposed €50-billion support package through 2027.

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