SINGAPORE'S INTERESTS IN G20 MEETINGS

SINGAPORE'S INTERESTS IN G20 MEETINGS

22.

Miss Penny Low asked the Minister for Foreign Affairs (a) what is Singapore's interest(s) in the G20 proceedings and in spearheading the 3G process; (b) what direct benefits do they bring; and (c) what is their impact on Singapore's position and image in the global arena.

Mr George Yong-Boon Yeo: Prime Minister Lee Hsien Loong participated in the G20 Summit in Seoul at the invitation of the host, the Republic of Korea, as a representative of the Global Governance Group (3G) and as the Prime Minister from a major financial centre in Asia. Singapore is honoured to have participated in the Seoul Summit and add to the Asian voice in the G20, which is important given Asia's place in the global economy.

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The Seoul Summit discussed the pressing challenges facing the global economy. The leaders also discussed measures to promote strong, sustainable and balanced global growth. These included taking coordinated actions to promote sustainable external balances, ensure free trade, reform the International Monetary Fund, achieve financial regulatory reform, and establish global financial safety nets.

Singapore is a key node in the global financial system and has a huge interest in its proper functioning. Our public and private financial institutions have a responsibility to contribute positively to discussions in the G20 on global financial reforms. It is also important for the G20 to keep markets open, resist protectionism, advance the global trade agenda and work for the attainment of the Millennium Development Goals.

Since November 2008, the G20 has coordinated a global response to the financial crisis. The designation of the G20 process as the "premier forum for international economic cooperation" at the G20 Summit in Pittsburgh in September 2009 means that the G20 has replaced the G7 as the premier economic forum in the world. By coming together to take swift and decisive actions, the G20 helped avert a global economic depression last year. However, the G20 is self-appointed and needs to engage all countries. Even though the G20 collectively accounts for about 80% of the global economy, there are over 170 countries which are not members of the G20, but whose economic prospects are affected by the actions of the G20.

Global governance structures need to strike the right balance between effectiveness and inclusiveness. For different issues there are different sets of committed stakeholders who can contribute constructively. It is therefore important that the G20 operates on the principle of "variable geometry", so that non-G20 countries can participate at different levels on issues of particular concern to them. And while we need to coordinate globally, our responses are carried out nationally and regionally. There is therefore a need to create space for national and regional approaches, even as we work towards global solutions.

Going forward, we need a framework that encourages national, regional and global efforts to be aligned in the same direction, allowing for national and regional differences. Such a framework will involve countries in the G20, regional groupings like APEC and ASEAN in our region as well as global institutions like the International Monetary Fund and the World Bank. To be effective, indeed for the entire process to be considered legitimate, the entire membership of the UN has to be engaged and the views of different countries and regions taken into account.

With these concerns in mind, Singapore took the initiative to form the 3G to support the G20. The name Global Governance Group was coined by the Foreign Minister of Liechtenstein. The 3G membership currently comprises 27 small and medium-sized UN member states from all parts of the globe. The 3G strongly supports the G20 process, provided its actions and decisions strengthen and complement the work of the UN. To this end, the 3G has been engaging the G20 with a view to building a bridge between the G20 and the UN. The 3G has emphasised the need for the various G20 Summit hosts to consult the wider UN membership before each Summit and to brief the UN membership after each Summit on its deliberations and outcomes.

As a result of these efforts by the 3G, we have seen G20 hosts reach out to the UN membership to obtain feedback before and after G20 Summits. The Canadians, who hosted the Toronto Summit, as well as Korea, which hosted the recent Summit, have

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made it a point to brief the UN member states on their G20 initiatives. Likewise, the French, who will be chairing the G20 Summit next year, have also been engaging the UN membership early, for which they should be commended. An area of great concern to many countries is development, in particular, meeting the UN Millennium Development Goals.

Although Singapore is a small state, we try our best to play a responsible role in the global system, offering our views and proposing solutions when appropriate, always working with other members of the UN in a constructive way. In this way, we serve best our own national interest.