Next Steps for the G20: Turkey 2015

About the series

CIGI experts offer commentary and analysis in advance of the G20 summit to be held in Antalya, Turkey from November 15-16, 2015

In the Series

They gathered because they want to be permanent members of the United Nations Security Council. But the show of unity in New York by the leaders of Brazil, Germany, India and Japan in September stood out because it was a rare image of what geopolitical affairs should look like. The meeting of the “Group of Four” (G4) had an equal number of men and women, just as one would expect in a world where the proportion of males and females is roughly equal.
Cross-border investment is an increasingly important part of the global economy. In the last two decades, foreign direct investment (FDI) inflow has grown from about 10 percent to 35 percent of the global GDP (see Figure 1). However, the governance of international investment remains highly fragmented and contested. Unlike international trade, which has been governed by a global framework since the end of World War II — first under the General Agreement on Tariffs and Trade (GATT) and then the World Trade Organization (WTO) — FDI has been governed by nearly 3,000 bilateral investment treaties (BITs) and over 300 other international investment agreements.
The Governor of the Bank of England Mark Carney recently delivered a well-received speech in London, United Kingdom, to a community of financial sector representatives emphasizing the impact that climate change could have on financial sector stability. The impact could be threefold. The first type of risk is direct — the increasing frequency of extreme weather events such as floods could have impacts on the insurance sector in particular, which will have to pay for the damage to insured property caused by these events. A second type of risk will be the liability risk for insurance firms from claims made by parties suffering damage due to climate change caused by others. If such claims are successful, they could be passed to insurance firms that would then have to pay.
At their 2014 summit in Brisbane, Australia, G20 leaders adopted the Brisbane Action Plan, which was intended to raise potential world growth by two percent over the subsequent five years. Australia’s G20 presidency worked mightily for this result, recognizing that the credibility of the G20 to deliver was being questioned by many who saw the G20 increasingly as little more than a talk shop.
Just as the Korean summit in 2010 was the first time the G20 leaders were hosted by an Asian country, and the 2012 Mexican summit the first time they were hosted by a Latin American nation, this year’s summit in Turkey will be the first held by a Muslim majority country, which reinforces the fact that the greatest opportunity and challenge the G20 faces with its many cultures, religions and political systems is how to make globalization work in a world of differences.