Plans for the Fourth G20 Summit: Co-chaired by Canada and Korea in Toronto, June 26-27, 2010 Jenilee Guebert Director of Research, G20 Research Group June 21, 2010 List of Acronyms and Abbreviations 2 7. Appendices 96 Preface 3 List of Meetings 96 1. Background 3 Leaders 96 2. Agenda and Priorities 4 Ministerials 96 Global Imbalances 13 Sherpas 97 Economic Growth 14 Deputies 97 Stimulus and Exit Strategies 17 Workshops 97 Regulation and Supervision 22 Other 98 Debts 32 G20 Leaders’ Experience 98 Accounting 36 List of G20 Finance Ministers and Central Bank Offshore Jurisdictions and Tax Havens 38 Governors, 1999-2009 98 Executive Compensation 43 G20 Sherpas 103 Levies on Banks 47 Members of G20, Gleneagles Dialogue and Major Currencies and Exchange Rates 53 Economies Forum 104 Hedge Funds 61 G20 Leaders’ Biographies 104 Reform of the International Financial Institutions 63 Outreach Participant Countries 109 Trade 65 International Organization Participants 110 Climate Change 68 Statistical Profiles 112 Energy 70 Argentina 112 Employment 71 Australia 113 Development 71 Brazil 115 3. Participants 72 Canada 116 4. Implementation and Preparations 74 China 117 Implementation 74 France 119 Preparatory Meetings 78 Germany 120 Preparations 78 India 121 Other Meetings 85 Indonesia 123 5. Site 87 Italy 124 Next Summit 88 Japan 126 6. Civil Society and Other G20 Related Activities 94 Mexico 127 Republic of Korea 129 Russia 130 Saudi Arabia 131 South Africa 133 Turkey 134 United Kingdom 136 United States 137 European Union 139 Key sources 140 List of Acronyms and Abbreviations AIMA Alternative Investment Management Association APEC Asian Pacific Economic Cooperation ASEAN Association of South East Asian Nations BCBS Basel Committee on Banking Supervision BIS Bank for International Settlements BRIC Brazil, Russia, India and China CDS credit default swap DPRK Democratic People’s Republic of Korea DTA double taxation agreement ECB European Central Bank FSB Financial Stability Board FSF Financial Stability Forum GDP gross domestic product IADB Inter-American Development Bank IASB International Accounting Standards Board IDA International Development Association IEA International Energy Agency IFIs international financial institutions IFRS International Financial Reporting Standard IMFC International Monetary and Finance Committee IMF International Monetary Fund MEF Major Economies Forum MEM Major Economies Meeting NEPAD New Partnership for Africa’s Development OECD Organisation for Economic Co-operation and Development OPEC Organization of Petroleum Exporting Countries UNCTAD United Nations Convention on Trade and Development UNFCCC United Nations Framework Convention on Climate Change WTO World Trade Organization Fourth G20 Summit Plans as of June 21/10 2 Preface This report on the “Plans for the Fourth G20 Summit” is compiled by the G20 Research Group largely from public sources as an aid to researchers and other stakeholders interested in the meetings of G20 leaders and their invited guests. It is updated periodically. Note that this document refers to the G20 leaders’ meeting (or summit), which had its first gathering on November 14-15, 2008, in Washington DC (as opposed to the G20 finance ministers forum, which was founded in 1999, and other groupings such as the G20 developing countries formed in response to the agricultural negotiations at the World Trade Organization). Bolded sections indicate new information. 1. Background The Group of Twenty (G20) leaders met for the first time in 2008, initially on November 14 for a working dinner and then on November 15 for a working meeting in Washington’s National Building Museum. The official name of the meeting was the “Summit on Financial Markets and the World Economy.” Participants from the G20 systematically significant developing and emerging countries gathered to discuss the global economic and financial crisis affecting the world. The G20’s members are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Republic of Korea, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States and the European Union. Spain and the Netherlands also participated in the first meeting as part of the French delegation, under the auspices of the EU. The second summit took place on April 1-2, 2009. The United Kingdom hosted the meeting in London. Spain and the Netherlands again participated and representatives from ASEAN, the Financial Stability Forum, the International Monetary Fund, NEPAD, the United Nations, the World Bank and the WTO were also included. The third G20 meeting took place in Pittsburgh on September 24-25, 2009, with the United States as host. The fourth G20 summit (and the first institutionalized one) will take place in Toronto, Ontario, Canada, on June 26-27, 2010. It will be co-hosted by Canada and the Republic of Korea. The fifth summit is scheduled to take place in Korea in November 2010. In 2011, France will take over as chair. The G20 finance ministers’ and central bank governors’ group first met in 1999. They met for their tenth annual meeting on November 8-9, 2008, in Sao Paulo, Brazil. They have started meeting more frequently since the G20 leaders first met in Washington, including during the leaders’ meetings. They met on April 24, 2009, in Washington on the margins of the annual spring meeting of the IMF and World Bank, on September 4-5 to prepare for the Pittsburgh Summit and again for their annual meeting on November 6- 7, 2009, in St. Andrews, Scotland, which was be hosted by the UK (which held the chair of the G20 for 2009). Under the Gleneagles Dialogue, since 2005 a group of 20 ministers in the fields of Fourth G20 Summit Plans as of June 21/10 3 environment and energy have met, including in Japan in 2008, to discuss issues associated with climate change. On the margins of the G8 Hokkaido Summit in Japan in July 2008, the 16 Major Economies Meeting (MEM-16) was held at the summit level, following official-level meetings of this forum started by the United States in 2007. President Barack Obama co-chaired the second summit-level meeting of the renamed Major Economies Forum (MEF) as part of the G8 L’Aquila Summit in Italy on July 9, 2009. In both cases, membership largely overlaps that of the G20. 2. Agenda and Priorities U.S. president Barack Obama appealed to G20 members not to waver in their efforts to support the economic recovery. “We must act together to strengthen the recovery,” Obama said in a letter to other leaders of the G20. “Our highest priority in Toronto must be to safeguard and strengthen the recovery,” he said. “We worked exceptionally hard to restore growth; we cannot let it falter or lose strength now.” Obama called on the other nations to “reaffirm our unity of purpose to provide the policy support necessary to keep economic growth strong.” The president noted that “significant weaknesses” linger among the major and developing economic powers. He told his summit partners “it is essential that we have a self-sustaining recovery that creates the good jobs that our people need.” Obama said that the June 26-27 summit should also focus on efforts to stabilize public deficits in the “medium term.” Several European nations including Germany, France and Britain are already moving to attack high deficits in an effort to calm global financial markets. Obama said “I am committed to the restoration of fiscal sustainability in the United States and believe that all G-20 countries should put in place credible and growth- friendly plans to restore sustainable public finances … But it is critical that the timing and pace of consolidation in each economy suit the needs of the global economy, the momentum of private sector demand and national circumstances.” The recovery from recession in the United States has been erratic and uneven. Obama also called on his G20 partners to promote “balanced global demand” and said he remained concerned about the “continued heavy reliance on exports by some countries with already large external surpluses.” While not mentioning China by name, that comment was an obvious reference China’s trade surpluses and continued resistance to U.S. demands that allow the renminbi to rise in value against the dollar.1 (June 18, 2010, Associated Press Newswires) At the G20 meeting in Korea on June 4-5, the finance ministers agreed that the economic recovery has been faster than anticipated, “although at an uneven pace across countries and regions.” They agreed that the Framework for Strong, Sustainable and Balanced Growth is a key mechanism and they will submit a basket of alternative policy options that have been recommended to their leaders to consider at the June summit. The ministers “committed to reach agreement expeditiously on stronger capital and liquidity standards as the core of [their] reform agenda.” The leaders will receive reports and recommendations from the FSB and IMF to deliberate on when they meet in Toronto in 1 Associated Press Newswires (June 18, 2010), “Obama tells G-20 nations to seal economic recovery.” Fourth G20 Summit Plans as of June 21/10 4 June. The finance ministers “welcomed the agreements for substantial capital increases and institutional reforms at the World Bank, Inter American Development Bank, European Bank for Reconstruction and Development, and African Development Bank.” They called for an “acceleration of the substantial work still needed for the IMF to complete the quote reform by the Seoul Summit” and they committed to ensuring that