Bringing the voice of the Least Developed Countries into the G20 policy agenda
This report is divided into four sections: Chapter 1 addresses the role of African countries within the G20 decision making processes. Starting with a reflection on the impact of COVID-19 for Africa, the section then focuses on the role and agency of LDCs and African countries in the G20 policy mechanisms. It outlines key themes (e.g. trade, green transition, fair financial architecture) and new actors (e.g. the African Standing Group within the T20) that could be brought to the table to ensure a more decisive and impactful role for LDCs and African countries in the G20 decision making processes.
Chapter 2 analyses the role of quality and climate-resilient infrastructure to boost sustainable and long-term recovery and development for LDCs. The section first addresses why these investments are crucial for sustainable development, showing the impact and costs that inaction could cause. In addition, it discusses the current gaps and obstacles (e.g. financial, technical, institutional) that still hamper the development of new infrastructural models that aim to shift from a “do not harm” to a “net benefits” principle. Finally, it draws some policy recommendations from the T20.
Chapter 3 focuses on development finance with the aim to reflect on how the G20 can support and identify innovative mechanisms to mobilize financial resources for the LDCs. The section begins with assessing the financial needs of LDCs, showing how COVID-19 has exacerbated existing vulnerabilities; and then focuses on three main areas where the G20 could play a key role in bringing forward a more effective architecture for development finance: blended finance, special drawing rights (SDRs) reallocation, and sustainable bonds. The section concludes with a series of proposals and conclusions for G20 decision makers.
Finally, the report presents some conclusions, summarizes the main proposals addressed by the different sections, and identifies key priorities of immediate interest to African and LDC countries, on which current and future G20 Presidencies should continue working on in the next years.
Report prepared as part of the ongoing work programme of the Division for Africa, Least Developed Countries and Special Programmes at the United Nations Conference on Trade and Development (UNCTAD) and produced as part of a collaboration between UNCTAD and IAI as national Co-Chair of the Think 20 (T20).
Abbreviations and Acronyms
Chapter 1. Boosting Africa’s and LDCs’ Agency in the G20
1. Introduction and background
2. Impact of COVID-19 on Africa and LDCs
3. The need for a greater agency
4. Role of G20 in highlighting African and LDC developmental imperatives
5. T20 Africa Standing Group support and South-South Cooperation
6. Crucial themes for Africa and LDCs
Chapter 2. Boosting Quality and Climate-resilient Infrastructures in Developing Countries: Policy Proposals from the T20
2. Climate-resilient infrastructures: The costs of inaction
3. The main obstacles to develop climate-resilient infrastructures
4. Financing new infrastructural models for the post-COVID world: shifting from do not harm to net benefits
Chapter 3. How Can the G20 Support Innovative Mechanisms to Mobilise Financial Resources for LDCs in a Post-Pandemic World?
1. Financial needs in LDCs in the wake of the COVID-19 crisis
2. The role of the G20 in promoting innovative finance in LDCs
2.1 Blended finance
2.2 Redistributive new allocation of Special Drawing Rights
2.3 Sustainable bonds
3. Conclusion and policy recommendations for the G20