Innovative, invigorated, interconnected and inclusive: Chinese experts analyze G20 themes

The Group of Twenty, or G20, is the premier forum for international economic cooperation. It is also an important mechanism for global economic governance. China, having assumed the G20 presidency for 2016, stands ready to work together with all members toward an “Innovative, Invigorated, Interconnected and Inclusive World Economy." Those four adjectives also comprise the theme of the 2016 G20 Summit.

Chen Xiaochen and Li Zhen, researchers at the Chongyang Institute for Financial Studies affiliated to Renmin University of China, wrote an analysis of the theme of this year’s G20.

To be specific, "innovative" refers to innovation-driven development, including innovation in science and technology, as well as innovation in development concepts, systems and institutions, business models and structural reform, all of which will help to locate new sources of growth for the world economy. The biggest problem for the global economy now is a lack of growth drivers, and the key lies in innovation, reform and adjustment. Many agree that the world is currently on the cusp of a new scientific and industrial revolution, and innovation is of crucial importance for facilitating productivity and strong economic growth during this time. China has decided to make "forging a new path for growth" a priority of the Hangzhou summit. What is being advocated is innovation in a broader sense--innovation in science and technology and, beyond that, in development concepts, institutions and mechanisms, business models and a whole range of areas. China hopes that the summit will reach a consensus on innovation, structural reform, the new industrial revolution and the digital economy.

"Invigorated" means lending impetus to the sluggish world economy by exploring new paths and tapping new forces for improved vitality. It is also about achieving more efficient global economic and financial governance.

Since the global financial crisis, G20 has played an important role in improving the international financial system and increasing the voice and representation of emerging markets, which has been well received by the international community. China hopes that G20 members will build on what has already been achieved to further enhance the reform of international financial institutions, improve the international monetary system and strengthen cooperation on financial regulation, international taxation, green finance, energy governance and anti-corruption. All of this will help to balance the global economic governance structure, as well as to make its mechanisms more reliable and its actions more effective.

File photo taken on April 27, 2016 shows an aerial view of the West Lake in Hangzhou, east China's Zhejiang Province.

"Interconnected" indicates a community with shared interests and a common future. The term calls for closer international economic cooperation, the sharing of opportunities through connectivity and the creation of synergy through sound interactions.

For some time now, protectionism has been on the rise, and the multilateral trading system has encountered difficulties and setbacks. China has therefore pushed for regular meetings of trade ministers and the creation of a trade and investment working group. This year’s summit agenda will highlight trade and investment so as to reverse the current situation. China hopes that during the Hangzhou summit, G20 members will reiterate their opposition to protectionism and reach a consensus on promoting the coordinated development of a multilateral trading system and regional trade arrangements, propelling global trade growth, supporting global value chain development and enhancing cooperation on international investment policies.

"Inclusive" aims to narrow the developmental gaps between countries. Use of the term means focusing more on developing countries and all groups of people, and allowing all people to benefit from the growth of the world economy. G20 strongly supports the 2030 Agenda for Sustainable Development, and has achieved significant results in infrastructure investment, food security, taxation, financial inclusion, human resource development and more. In 2015, while continuing to make progress on these issues, G20 accorded special attention to low-income and developing countries, SMEs, energy access in Africa as well as women’s and youth employment. Such focus demonstrates G20’s determination to implement the 2030 Agenda for Sustainable Development and deepen developmental cooperation.