Korea should bring can-do approach to G20

This interview is part of a package of articles highlighting Korea’s preparations for the Nov. 11 to 12 G20 Summit slated for Seoul, marking today’s D-90 day for the summit. — ED.

By Kim Jae-kyoung

Following the Toronto Summit in June, there have been growing doubts about the legitimacy of the G20 Summit, as most of the previous gatherings were only slogan-oriented with no workable agreements and solutions.

Leaders around the world are now paying attention to the G20 Seoul Summit slated for Nov. 11 and 12. They believe the G20 is now at a crucial juncture on whether it should remain as the world’s policy forum and that the outcome of the Seoul Summit can determine its future.

A noted global consultant suggests that in order to make the summit a success and keep the G20 afloat, Korea take a different approach from its predecessors in its role, noting that it is the first G20 meeting to take place in a non-G8 state in Asia.

“Korea’s role at the summit should be action-oriented. It should bring a ‘can-do’ approach to the meeting, ensuring that the G20 makes concrete progress on its ambitious agenda,” McKinsey & Company Chairman Dominic Barton said in an interview with The Korea Times.

The Canadian consultant pointed out that there are a wide range of issues in which Korea can take the initiative in bridging the perspectives between advanced and emerging economies, such as reform of international financial systems and environmental protection.

“One such area requiring action is reforming the global financial architecture, with the G20 discussions needing to review a wide range of models and perspectives rather than just a ‘Western’ or developed market view of regulations,” he said.

“Climate change might also be a priority, given the attention that the Korean government is focusing on the topic. Korea might also continue its push for greater trade liberalization to support global economic recovery, even perhaps a move toward a multilateral trade deal,” he added.

The veteran consultant stressed that Korea should capitalize on the G20 Business Summit in order to lead the G20 into producing meaningful deliverables that will help the global economy achieve a sustainable and balanced growth.

“Korea should strive to bring G20 business leaders into the heart of the G20 discussions, seeking their input on specific topics such as youth unemployment, healthcare and reducing the cost of renewable energy,” he said.

Barton, who is also chairman of the International Advisory Committee to President Lee Myung-bak on National Future and Vision, said that Korea’s move to introduce plans for global financial safety nets and development issues as new agendas is a step in the right direction.

“This combination of moves matters because financial markets in emerging economies are critical to the development of the real economy. Before the economic crisis, there were excesses in the developed market financial system,” he said.

“Seeking to address those excesses with a safety net is right, but there is also a clear need to ensure that crisis prevention does not constrain the broadening and deepening of financial markets in emerging economies, nor the utilization of a range of financial products including derivatives,” he added.

McKinsey and its research arm McKinsey Global Institute are knowledge partners of the G20 Seoul Summit.