L20 Statement for the Brisbane Leaders' Summit
CREATING QUALITY JOBS AND
INCLUSIVE GROWTH: THE ROLE
OF G20 LEADERSHIP
The global economy is faced with weak growth, high unemployment, low investment levels, a rising jobs gap and soaring income inequality. Financial markets are volatile and the climate change and development challenges remain unresolved. The mounting crises such as conflict in the Middle East and the Ebola outbreak in West Africa are only the most obvious reflections of the interconnected nature of economies and societies irrespective of geography or level of development. The global labour movement represented through the L20 calls on the G20 Leaders to show leadership and political will at this crucial time to press forward with a practical set of policy actions to support demand, create quality jobs and ensure inclusive and sustainable development.
G20 Leaders should:
- Agree on a balanced policy mix in the Brisbane Action Plan to stimulate demand, raise low incomes and create jobs;
- Bring forward investments in public infrastructure and commit to five year investment targets;
- Follow up past commitments to create quality employment and training for young people;
- Commit to an ambitious plan to invest in low-carbon growth and reduce greenhouse gas emissions;
- Step up momentum to ensure fair taxation and implement the BEPS Action Plan;
- Move ahead on the past commitments on financial regulation and ending “too big to fail” banks;
- Ensure that trade and supply chains contribute to decent job creation and safe workplaces;
- Deliver on past policy commitments, increase coordination especially between the G20 Finance and Labour Tracks and bring in the voice of working people in G20 and national policy processes to restore public trust in economic recovery.
The case for a Balanced Policy Mix –
The L20 Modelling Results
The L20 simulations suggest that “A coordinated policy mix in the G20 targeted to
increase the share of wages in GDP by 1%-5% in the next 5 years and public investment
in social and physical infrastructure by 1% of GDP in each country can create up
to 5.84% more growth in the G20 showing the strong internal demand effects of wageled
recovery offsetting any negative effects on net exports or private investment”. This
strategy could surpass the 2% target and actually halve the G20 Jobs Gap that is anticipated
to be 64 million in 2018 on unchanged policies.