The failure of the G20 finance chiefs to agree on a communique reflects the weaknesses of the once-powerful economic grouping. Yellen said the differences between the group’s leaders prevented the drafting of an official statement, but that there was broad agreement on tackling global ills such as inflation and food crises. But she noted that the leaders of the Group of Twenty failed to make any significant policy breakthroughs.
In spite of the failure of the G20 finance chiefs to agree on a communique, Indonesia’s Finance Minister Sri Mulyani said that “the war in Ukraine should not prevent us from making progress on global issues”. She compared the absence of Russian officials to that of an arsonist who joined firemen. However, the war in Ukraine should not prevent progress on pressing issues, including food insecurity and trade protectionism.
The war in Ukraine has slowed global growth and sanctions have further complicated matters. The war in Ukraine has heightened supply-demand mismatches, raising the price of food and fuel. These factors have led to increasing inflation and food insecurity. Many members highlighted the need to address debt vulnerabilities and climate change. The G20 also encouraged further progress on a Common Framework for Debt Treatment.
The two-day meeting of G20 finance ministers in Indonesia on 15-16 July 2022 produced no joint communique. The meeting was marred by political division over Russia’s invasion of Ukraine. Although G-20 leaders converged on other global challenges, there was a sense of enmity over the conflict. Despite the acrimonious climate and geopolitical crisis, the G20 finance chiefs did not make any policy breakthroughs.