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G20 2014: Perspectives from Mike Callaghan Business, Civil Society, Labour, Tim Costello Robert Milliner Think Tanks and Youth Holly Ransom Heather Smith

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G20 2014: Perspectives from Mike Callaghan Business, Civil Society, Labour, Tim Costello Robert Milliner Think Tanks and Youth Holly Ransom Heather Smith Sharan Burrow G20 2014: Perspectives from Mike Callaghan business, civil society, labour, Tim Costello Robert Milliner think tanks and youth Holly Ransom Heather Smith Number 9 | March 2014 G20 2014: PERSPECTIVES FROM BUSINESS, CIVIL SOCIETY, LABOUR, THINK TANKS AND YOUTH The Lowy Institute for International Policy is an independent policy think tank. Its mandate ranges across all the dimensions of international policy debate in Australia – economic, political and strategic – and it is not limited to a particular geographic region. Its two core tasks are to: • produce distinctive research and fresh policy options for Australia’s international policy and to contribute to the wider international debate. • promote discussion of Australia’s role in the world by providing an accessible and high quality forum for discussion of Australian international relations through debates, seminars, lectures, dialogues and conferences. Funding to establish the G20 Studies Centre at the Lowy Institute for International Policy has been provided by the Australian Government. The views expressed in the contributions to this Monitor are entirely the authors’ own and not those of the Lowy Institute for International Policy or of the G20 Studies Centre. G20 2014: PERSPECTIVES FROM BUSINESS, CIVIL SOCIETY, LABOUR, THINK TANKS AND YOUTH TABLE OF CONTENTS Overview 3 Mike Callaghan Opening comments from the Australian sherpa 5 Dr Heather Smith Unlocking private sector led growth and investment 7 Robert Milliner The G20 as part of a wider community 16 Tim Costello L20 objectives in the run up to Brisbane: jobs, fair wages and responsible investment 22 Sharan Burrow The Think20 contribution to the Brisbane G20 Summit 27 Mike Callaghan Think20 meeting – summary report to sherpas 33 Mike Callaghan The Y20 in 2014: ‘engaging the present, shaping the future’ 40 Holly Ransom Contributors 1 G20 2014: PERSPECTIVES FROM BUSINESS, CIVIL SOCIETY, LABOUR, THINK TANKS AND YOUTH OVERVIEW MIKE CALLAGHAN1 This issue of the Monitor brings together policy contributions from a wide cross-section of society interested in feeding into the G20 process. It also contains an opening comment from the Australian sherpa, Dr Heather Smith, on how outreach to members of society has deepened as the G20 has evolved. This outreach is now centred upon five groups: • Business representatives – B20 • Representatives from civil society – C20 • The labour movement – L20 • Think tanks and the academic community – T20 • Young people – Y20 The G20 first sought to formalise its outreach with the broader community at the Toronto Summit in 2009, holding consultations with business representatives from member economies of the G20. Since then, the consultation process has expanded and become more organised. The G20 chair now appoints a lead coordinator for each of the five groups, or to use the terminology of the Australian chair for 2014, the ‘engagement partners’. The appointed coordinator then pulls together contributions from that segment of society in both G20 and non- G20 countries. The objective is to identify policy priorities for the G20. The coordinators for the engagement groups in 2014 are: • B20 – Mr Richard Goyder, Managing Director of Wesfarmers • C20 – Reverend Tim Costello, CEO of World Vision • L20 – Ms Ged Kearney, President of the Australian Council of Trade Unions • T20 – Mr Mike Callaghan, Lowy Institute for International Policy • Y20 – Ms Holly Ransom, Holly Ransom Enterprises Each of the G20 engagement partners has provided a paper for this issue of the Monitor. The papers canvas a range of issues, including how the groups are organising their contribution to the G20 process in 2014, what they consider to be some of the priorities for the G20, and 1 Director, G20 Studies Centre, Lowy Institute for International Policy. 3 G20 2014: PERSPECTIVES FROM BUSINESS, CIVIL SOCIETY, LABOUR, THINK TANKS AND YOUTH thoughts on what would constitute ‘success’ in terms of possible outcomes from the Brisbane Summit. Heather Smith notes that the work of the B20, L20, C20, Y20 and T20 ‘will have maximum impact if it is targeted, actionable and pursues real outcomes’. One characteristic that all engagement partners share is their recognition of the importance of strengthening the G20. And all are working to achieve such an outcome. 4 G20 2014: PERSPECTIVES FROM BUSINESS, CIVIL SOCIETY, LABOUR, THINK TANKS AND YOUTH OPENING COMMENTS FROM THE AUSTRALIAN SHERPA DR HEATHER SMITH When G20 leaders first met in Washington D.C. five years ago they were spurred by the looming financial crisis, and a realisation that the existing avenues of cooperation no longer reflected modern global economic and political realities. A leader-level dialogue between the largest developed and emerging economies has allowed us to deal with pressing global challenges quickly, with all the major parties at the table. The strength of the G20 is that representativeness – the inclusive mix of countries and people that it brings together. As Australia’s Prime Minister Tony Abbott has made clear, ultimately the G20 exists to serve people, not governments. The G20’s decisions affect the 4.6 billion citizens across its membership, and many more beyond. It is only natural then that the G20 should consult widely beyond governments, and listen to the people whose lives, opportunities and livelihoods we want to improve. Business and labour representatives have been involved in dialogue with the G20 from the time of the first summit in Washington – informally at first, but later in a more structured way under the B20 and L20. The more recent emergence of the Civil Society 20, Youth 20 and Think 20 is an explicit acknowledgement of the G20’s wide impact, and the need to engage with those who feel that impact. As G20 President for 2014, Australia fully supports this process of dialogue. It is essential for a range of reasons. In particular, while G20 governments may have different views from the groups on some issues, the process of dialogue around those views is vital to creating robust, workable policy for the real world. These groups are partners in the G20’s efforts, and our collaboration will strengthen outcomes at the Brisbane summit this November and beyond. The G20 is an economic forum, so it is important that we listen to people on the economic frontline in order to craft good policy that addresses real issues. The ‘20s’ provide an excellent channel for bringing together the range of non-government opinions to inform G20 priorities and leaders’ decisions, and we want to hear their perspectives. At the same time, we look to those outside government not just to inform policy, but to help make it successful. As major economic actors the views of these groups have weight in their home countries, and they can call on their governments to act on the G20 agenda. They can also 5 G20 2014: PERSPECTIVES FROM BUSINESS, CIVIL SOCIETY, LABOUR, THINK TANKS AND YOUTH strengthen reform efforts by formulating their own actions and commitments that support G20 goals. Engagement with the ‘20s’ and others is also vital in communicating the G20’s work to the wider public for greater understanding and support. They can use their networks to help convey what the G20 is doing, and why the involvement of the non-government sector is so important. The Australian G20 Presidency is already working closely with the B20, L20, C20, Y20 and T20. Our agenda this year is focussed, and we appreciate the groups’ focus too. Like the G20, their work will have maximum impact if it is targeted, actionable and pursues real outcomes. Together we can ensure the G20 will strengthen opportunity for people and business, lift living standards and deliver strong, sustainable and balanced growth. 6 G20 2014: PERSPECTIVES FROM BUSINESS, CIVIL SOCIETY, LABOUR, THINK TANKS AND YOUTH UNLOCKING PRIVATE SECTOR LED GROWTH AND INVESTMENT ROBERT MILLINER1 INTRODUCTION The B20 has played an increasingly active role in G20 deliberations The B20 provides a real since its first formal dialogue with G20 governments at the G20 Summit economy perspective to in Toronto in June 2010. The B20 provides a real economy perspective to G20 deliberations, and contributes practical recommendations to help G20 deliberations, and guide G20 commitments from year to year. contributes practical As 2014 develops, the global economic outlook gives reason for recommendations to help optimism. Economic growth is set to rise in the United States to 3 per guide G20 commitments cent from under 2 per cent and growth in China is likely to remain above 7 per cent. The significant financial risks facing Europe have eased. But from year to year. while the global economic outlook is improving, recovery remains volatile and fragile. High unemployment persists across the developed world and emerging economies are confronting challenges of their own, including the need for structural reform.2 Prime Minister Abbott has committed Australia’s presidency to promoting stronger economic growth and making the global economy more resilient to deal with future shocks.3 The first Meeting of G20 Finance Ministers and Central Bank Governors committed to collective action to lift GDP by 2 per cent above the trajectory implied by current policies over the coming five years. Proposed action includes increasing investment, lifting employment and participation, enhancing trade and promoting competition, in addition to macroeconomic policies.4 The B20 strongly 5 supports these objectives. 1 B20 Sherpa. 2 IMF, “Is the Tide Rising? (21 January, 2014),” http://www.imf.org/external/pubs/ft/weo/2014/update/01/pdf/0114.pdf; OECD, Economic Policy Reforms 2014: Going for Growth Interim Report (Paris: OECD Publishing, 2014). 3 Tony Abbott, “Prime Minister’s Address to the World Economic Forum, Davos, Switzerland (23 January, 2014),” http://www.pm.gov.au/media/2014-01-23/address- world-economic-forum-davos-switzerland-0. 4 G20, “Communiqué of Meeting of the G20 Finance Ministers and Central Bank Governors, Sydney, Australia, February 23, 2014,” http://www.g20.utoronto.ca/2014/2014-0223-finance.html.
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