By Christopher Murphy, current student of the University of Sydney Business School MBA program. Christopher is an active commentator on bilateral economic relations in the Asia-Pacific, and is an Australian delegate to the APEC CEO Summit in Beijing 8-10 November 2014.
As most readers of this blog are no doubt aware, on 15 and 16 November 2014, Australia will host the G20 Leaders Summit in Brisbane. What is less apparent, however, is why the gathering of dozens of political leaders, finance ministers and central bank governors is directly relevant to business school students. Using a Sherpa, a sous Sherpa and a yak, let us explore why the G20 is so important to every business student in Australia.
The G20 describes itself as “the premier forum for international cooperation on the most important issues of the global economic and financial agenda”. G20 members account for 85% of the world economy, more than 80% of global trade and two-thirds of the world’s population. As an organisation, the G20 endeavours to harmonise all geographic regions of the world; and act as a global discussion group. What is said in Brisbane on 15 and 16 November will, literally, reverberate through much of the global economy.
Despite common misconceptions, the G20 is not actually a “summit”; rather it is a series of meetings, which culminates in the Leaders Summit. On 22 and 23 February 2014 finance ministers and treasurers met in Sydney, and then again in Cairns on September 20 and 21. These central meetings are also surrounded by dozens of satellite meetings. The G20 process is held together by sherpas, who lead the “sherpa track negotiations”, and help G20 members reach the leaders summit (no pun intended). The Australian Sherpa is Dr Gordon de Brouwer PSM. The sous Sherpa and yak are senior public officials who assist the Sherpa in facilitating the meetings, and preparing the G20 resolution (a document that encapsulates the G20 Leaders Summit).
If business school graduates want good jobs, then G20 member economies need to continue to implement the reforms that will achieve the G20 growth targets (currently set at 2% of global GDP). If business school graduates want to improve their own standard of living, and be able to buy cheaper food and vegetables at the grocery store, then the G20 member economies must renew their efforts for greater multilateral trade liberalisation. If business school graduates want to enjoy world-class infrastructure, healthcare and educational facilities than, G20 member economies must take determined steps toward modernizing the international taxation system.
What is more exciting than the G20 Leaders Summit? Pretty much everything. There is very little, however, that could be more relevant to our collective futures.