The club of the richest countries, the G-7which brings together the seven largest economic powers on the planet, is exploring ways to provide greater flexibility to its policies and diversify risks with the support of countries outside the bloc, in matters such as financial digitization or the reduction of China’s current dependence on supply chains.
During the second of the three days of the meeting of finance ministers and central bank governors of the G-7 that is being held in the Japanese city of Niigata, on the country’s west coast, the financial managers of the major global powers invited the dialogue table to countries like Indonesia, India, Brazil or the African Union in search of a greater capacity to respond to common challenges.
Among them is the high dependence on certain countries such as China in the supply chains of key global products such as electronic components, a paradigm that the partners seek to transform with the help of emerging economies, according to Japanese government sources.
The block of richest countries seeks to continue expanding its alliances and considers that a partnership with emerging countries can respond to their internal concerns while said powers benefit from the investment and job creation that this development entails.
Low- and middle-income country debt
A common point of concern that has been raised in the talks was the issues of debt of low- and middle-income countrieswhich require a common framework of action to guarantee their integration in the global sphere and their development.
The participants also exchanged views on transparency when discussing their own debt and the US side explained in more detail its current problems with the debt ceiling, said the aforementioned sources on an unscheduled issue that is attracting a lot of attention.
The G-7 believes that the flexibility is paramount at a time marked by instability linked to the Russian invasion of Ukraine, still high inflationthe recent bankruptcies of financial institutions that have convulsed the markets and the transformation of banking with the expansion of its digitization.
The normalization of online financial institutions and the flight of deposits that it is causing is one of the current concerns of the G-7, which seeks greater coordination in its regulation and a general strengthening of the financial system.
The financial authorities did not neglect even the time of the meal to continue addressing economic issues. During the same they talked about the situation of the world economy in the company of the Nobel Prize in Economics Joseph Stiglitz.
Also on the table were issues such as the mitigation of climate change through financial initiatives and the need for a global and not one-off transition to clean energyand an active exchange of opinions on crypto assets.
During the day, the Ukrainian Finance Minister, Sergii Marchenko, who spoke today about the current economic situation of the country at war after having also intervened on the opening day the day before, was telematically present.
The participants in the session actively talked about Ukraine and confirmed their commitment to maintain assistance to kyiv for as long as it is needed, according to Japanese officials.
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It is expected that support for Ukraine and pressure on Russia will be one of the key points of the joint statement that the G7 heads of Bonds plan to adopt at the end of their meeting tomorrow, Saturday, in which it is expected to focus on seeking measures for Moscow to avoid circumvention of its sanctions.
In the absence of a last session, the Japanese presidency sees a consensus on many of the issues discussed.