1. G20 Growth Agenda:
Framework for Strong, Sustainable, and
Balanced Growth
Lecture Slides
Zia Qureshi
KDI, Seoul: July 2-3, 2014

2. Part I: Context and Overview

3. G20: overview of structure and work
G20: 0rganization of work
• G20 processes are country led
• Work is typically organized in
working groups
• Working groups are co-chaired
by G20 members
• International institutions serve
in an advisory and technical role
• The World Bank is working with
several international institutions
(IMF, OECD, BIS, others) in
supporting G20
Leaders
Sherpas
Finance Ministers
& Central Bank
Governors
Working
Group
Working
Group
Working
Group
International Institutions

4. “We designated the G20 to be the premier forum for our
international economic cooperation.”
“We agreed to launch a framework that lays out the policies and
the way we act together to generate strong, sustainable and
balanced growth.”
“Our Framework for Strong, Sustainable and Balanced Growth is
a compact that commits us to work together to assess how our
policies fit together, to evaluate whether they are collectively
consistent with more sustainable and balanced growth, and to
act as necessary to meet our common objectives.”
…………Leaders’ Statement, The Pittsburgh Summit, September 2009

5. Framework for Strong, Sustainable, and Balanced Growth
Mutual Assessment Process (MAP)
• The Framework for Strong, Sustainable, and Balanced Growth forms the
core of the G20 process for economic policy coordination
• The Framework incorporates a Mutual Assessment Process for assessing
the consistency of G20 national policies and collective actions with the
shared objectives of strong, sustainable, and balanced growth
• Spanning the agenda for growth, the Framework plays an integrative
role in the G20 process, bringing together the work of different G20
work streams for a unified discussion of macroeconomic, financial, and
structural policies
• Establishment of the Framework reflected G20 resolve to work together
not only on immediate crisis response but also on medium-term policy
challenges
• The Framework Working Group is assisted by technical inputs from IMF,
OECD, World Bank, and other IOs (WTO, UNCTAD, ILO)

6. Framework/MAP: building blocks and progress
Summit Key Steps
Pittsburgh, September 2009 Establishment of Framework for Strong, Sustainable, and Balanced Growth
and the Mutual Assessment Process (MAP)
Toronto, June 2010 Fiscal consolidation plans
Financial sector reform
Seoul, November 2010 Indicative guidelines to identify and assess imbalances
MAP policy commitments
Seoul Development Consensus for Shared Growth
Cannes, November 2011 Near-term actions to respond to Euro area crisis
Sustainability Reports on countries with large imbalances
MAP policy commitments
Los Cabos, June 2012 Growth and Jobs Action Plan
Accountability Assessment Framework
St. Petersburg, September 2013 Medium-term fiscal strategies to enhance fiscal sustainability
Call for preparation of comprehensive growth strategies
Brisbane, November 2014 Assessment and adoption of growth strategies: four areas of focus –
investment and infrastructure, employment, competition, and trade

7. G20 structural reform commitments: more progress in
financial sector reform, less in other areas
21%
10%
4%
7%
24%
34%
St. Petersburg Commitments
Product market
regulation
Labor market
regulation
Taxation
Human capital
Financial
regulation
Other areas
10%
9%
8%
4%
43%
26%
Los Cabos Commitments
Source: OECD/World Bank

8. Need for more vigor in implementation of structural
reform commitments
0 10 20 30 40 50 60 70 80 90 100
Other
Financial regulation
Human capital
Taxation
Labour market regulations
Product market regulation
%
Pending Ongoing Completed
Source: OECD/World Bank
Implementation status of Los Cabos structural reform commitments

9. G20: from crisis management to promotion of growth and
development
• G20 has done relatively well in its crisis-response role, taking early
concerted action to restore market confidence and providing a forum for
coordination of macro-financial policies to restore economic stability
• Less attention has been paid to the policy agenda for growth and job
creation, but the current effort on growth strategies is helping to shift the
focus to the medium-term agenda of structural reforms and investment
• Development issues are addressed through various initiatives but this
effort needs better focus and closer integration with mainstream G20 work
• There is a need to improve coordination across G20 workstreams,
especially between Development Working Group and Framework Working
Group
• Successfully addressing this agenda will be essential to G20’s ability to act
as a premier global forum not just for crisis response but for the promotion
of longer-term growth and development

10. Part II: Challenges

11. Framework for Strong, Sustainable, and Balanced Growth
Challenges
• Restoring strong growth – and job creation
• Fostering sustainable growth
• Promoting balanced growth

12. -6
-4
-2
0
2
4
6
8
10
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
World
Low-income
Middle-income
High-income
Real GDP growth (% p.a.)
Source: WDI; World Bank staff projections
Global growth outlook: weak recovery and slower
medium-term growth prospects than pre-crisis

13. Recovery in advanced economies is weak―even by the
standards of past crises
Source: OECD, Haver Analytics, Rogoff and Reinhart (2008), and staff calculations.
* Big Five financial crises include Spain (1977), Norway (1987), Finland (1991), Sweden (1991) and Japan (1992). ** Recessions (i.e.,
two straight quarters of contraction) in G20 advanced economies since 1960. *** Range limits are average of best/worst three AE
recessions 1960-2006.
Recovery from financial crisis
(100 = First quarter of real GDP contraction)

14. Growth has slowed also in emerging economies that have
been the driver of global growth
Source: World Bank
-10
-5
0
5
10
15
20
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Brazil Russia India
China South Africa BRICS
Growth rate (%)

15. Sustainability of strong growth in emerging economies is
important for global growth
15
0
10
20
30
40
50
60
70
80
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Percent
DCs' contribution to world GDP growth
DCs' constant US$ share of world GDP
DCs' PPP share of world GDP
Note: 5-year moving average used for calculation of developing
countries' (DCs') contribution to world GDP growth.
Source: World Bank WDI and staff calculations
Developing countries' rising share in global growth
0
10
20
30
40
50
60
70
80
90
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012
Exports(%ofexportinggroup'stotalexports)
Advanced to Advanced Advanced to Developing
Developing to Advanced Developing to Developing
... and rising role as markets for exports
Source: International Monetary Fund DOTS.

16. … and for their own development
16
0
10,000
20,000
30,000
40,000
50,000
60,000
United States Russia Brazil South Africa China India
CurrentUSDollars,2012
Source: World Bank WDI
Gross national income per capita
BRICS

17. Emerging economies need to sustain structural reforms to avoid
“middle-income traps”
Few countries have escaped middle-
income trap in past half century … and none in Latin America
Hong Kong
SAR
Singapore Ireland
JapanEq. Guinea
Taiwan, China
Spain
Rep. of Korea
Israel
Greece
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
1.1
1.2
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1
2008percapitaGDPrelativetoUS(ratio)
1960 per capita GDP relative to US (ratio)
Source: Staff calculations based on Maddison data. 17
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
1900
1906
1912
1918
1924
1930
1936
1942
1948
1954
1960
1966
1972
1978
1984
1990
1996
2002
2008
Argentina
Brazil
Chile
Mexico
Peru
LAC
Ratio of per capita GDP relative to US (1990 US$)

18. Countries that have successfully transitioned from middle- to high-
income status typically show stronger performance on:
• Structural transformation―more rapid transformation from
agriculture to industry
• Higher total factor productivity growth―three times faster than
others at upper middle-income levels
• Human capital and innovation―higher quality of education, more
patents
• Openness―greater export orientation; some had more undervalued
exchange rates at lower middle-income levels than others but not at
upper middle-income levels
• Macroeconomic stability―inflation over 10% rare at middle-income
levels
• Equity―less likely to experience significant increases in inequality at
middle-income levels
18
Source: Bulman, David, Maya Eden, and Ha Nguyen, 2012. Transitioning from Low-Income Growth to High-Income Growth: Is
there a Middle-Income Trap?” World Bank.

19. The jobs challenge: persistently high unemployment
reflects both weak growth and structural factors
Source: OECD
0
2
4
6
8
10
12
14
2007 2008 2009 2010 2011 2012 2013
Unemployment Rates
United States United Kingdom OECD Total Euro Area
Percent

20. Framework for Strong, Sustainable, and Balanced Growth
Challenges
• Restoring strong growth – and job creation
• Fostering sustainable growth
• Promoting balanced growth

21. Fiscal imbalances and public debt: the challenge of restoring
fiscal sustainability, especially in advanced economies
21
-
50
100
150
200
250
Euro Area USA Japan Middle-income
countries
Low-income countries
2007 2009 2012
Government debt/GDP (%)
Much of the fiscal reform agenda is structural, with reform of tax
systems and entitlement programs being central in many countries
Source: IMF GFS; World Bank WDI

22. Need to integrate environmental sustainability in the growth agenda
Aggregate
Fossil fuel
Agriculture
Water
0
200
400
600
800
1000
1200
1400
Costofsubsidies,$billion
Source: World Bank, 2012: Inclusive Green Growth: The Pathways to
Sustainable Development.
Fossil fuel and other environmentally harmful subsides
Post-tax
Pre-tax
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Costofsubsidies,$billion
Energy Subsidies
Source: IMF.
Large win-win potential from removal of environmentally harmful subsides

23. Combating climate change: a challenge, but also a spur to
innovation and investment
1ST WAVE
Industrial
(1770-1830)
2ND WAVE
Steam & Railways
(1830-1870) 3RD WAVE
Steel, Electricity
& Heavy Engineering
(1875-1920) 4TH WAVE
Oil, Automobiles
& Mass Production
(1910-1975)
5TH WAVE
Information
& Telecom
(1971-)
INNOVATION
1800 1850 1900 1950 2000
Cleantech
& Biotech (2009-)
6TH WAVE
Source: Nicholas Stern (2014): Fostering the Transition to the New Climate Economy – Policies, Political Economy, Innovation, and Growth

24. Framework for Strong, Sustainable, and Balanced Growth
Challenges
• Restoring strong growth – and job creation
• Fostering sustainable growth
• Promoting balanced growth

25. Global imbalances and the challenge of rebalancing growth
-3
-2
-1
0
1
2
3
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15
G-20 Large Oil Exporters ROW Deficit ROW Surplus
G-20 Deficit Emg G-20 Deficit Adv G-20 Surplus Emg
G-20 Surplus Adv WORLD SUM G-20
Current Account Balances
(2000-15; percent of World GDP)
Source: IMF data and projections
After narrowing during the recession, external imbalances could
widen again as growth recovers

26. Emerging and developing economies’ balance of payments
A decade of “capital flowing uphill”
-10
-8
-6
-4
-2
0
2
4
6
8
10
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012
Current account balance
Net private inflows
Net private outflows
Change in reserves (- = increase)
% of GDP
Source: IMF BOP Statistics; World Bank staff estimates
In the decade to 2010, average current account surplus of 2.6% of GDP and cumulative
surplus of $3.8 trillion, implying a sizable net outflow of capital to advanced economies

27. Emerging economies now hold two-thirds of total
international reserves
Source: IMF International Financial Statistics.
0
2
4
6
8
10
12
14
TrillionUS$
Advanced Economies Emerging Economies excl. China China
International Reserves

28. Rising inequality: the challenge of inclusive growth
Source: World Bank All the Ginis dataset Note: Data on Saudi Arabia are not available.
0 10 20 30 40 50 60 70
Germany
Japan
Australia
France
Canada
Korea
Italy
India
Russia
United Kingdom
Indonesia
Turkey
Argentina
United States
China
Mexico
Brazil
South Africa
Gini coefficient
1980 or earliest
2012 or latest
Income Inequality has been rising in most countries

29. Inclusive Growth
• For growth to be strong, sustainable, and balanced in the
longer run, it needs to be inclusive
• Increased inequality can hurt growth also in the short run by
lowering aggregate demand
• Recent research links increased inequality to economic
instability
• There are important synergies between the policy agenda
for strong and inclusive growth
• Recent research also finds that well-designed redistributive
policies to reduce inequality may not harm growth
• Promoting inclusive growth―shared prosperity―needs to
be an integral part of the agenda and strategies for strong,
sustainable, and balanced growth

30. Part III: Growth Strategies

31. Framework for Strong, Sustainable, and Balanced Growth
G20 Growth Strategies

32. Development of G20 Growth Strategies
• Growing concerns in the G20 about prospects for medium-term growth and
job creation
• The St. Petersburg Leaders’ Declaration called for development of
comprehensive growth strategies for presentation to the Brisbane summit
• At their meeting in Sydney in February 2014, G20 Finance Ministers and
Central Bank Governors adopted the objective to lift G20’s collective GDP by
more that 2% in the next five years (by 2018) above the trajectory implied
by current policies
• G20 members submitted draft growth strategies in May and these were
peer reviewed in June, supported by assessments provided by international
organizations (IMF, OECD, World Bank)
• Initial assessment showed that the new policies set out in the draft
strategies add up only to about half of the 2% target
• G20 members asked to submit stronger, final growth strategies in July-
August. These will be subject to further discussion and eventually feed into
the Brisbane Action Plan to be adopted by G20 Leaders at the summit
• Work on the growth strategies being coordinated by the Framework
Working Group

33. Four key reform areas
• There are four key areas of focus in the growth strategies
being prepared by G20 members:
̶ Investment and infrastructure
̶ Competition and business environment
̶ Trade policies
̶ Employment policies
• Presentation that follows focuses on these four areas of
reform

34. Output gaps are largely closed in most emerging economies;
higher future growth will depend on raising potential growth
0
1
2
3
4
5
6
7
8
9
2003–07 2007–10 2010–13 2013–16
Actual growth
Potential growth
(Percent)
Actual GDP Growth vs. Potential Growth in Emerging Economies
Source: World Bank, Global Economic Prospects, January 2014.

35. Declining potential growth in emerging economies mainly
reflects lower TFP growth
0
1
2
3
4
5
6
7
2003–07 2007–10 2010–13 2013–16
TFP growth
Capital growth
Labor growth
(Percent) Contributions to Potential Growth in Emerging Economies
Source: World Bank, Global Economic Prospects, January 2014.

36. Declining investment in advanced economies
17
19
21
23
25
27
1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013
Source: World Bank Group: World Development Indicators
Advanced economies’ investment-to-GDP ratio (%)

37. A mixed picture on investment in emerging and
developing economies
0
5
10
15
20
25
30
35
40
45
50
1980 1985 1990 1995 2000 2005 2010
China
East Asia ex. China
Europe & C. Asia
L. America & Car.
South Asia
Sub-Saharan
Africa
Source: World Bank Group: Global Economic Prospects.
Investment as % of GDP

38. Central to raising potential growth are TFP-enhancing
structural reforms
-0.35
-0.3
-0.25
-0.2
-0.15
-0.1
-0.05
0
0.05
0.1
0.15
Barriers to competition and market entry Barriers to trade and FDI Labor market rigidities
Countries with higher TFP growth Countries with Lower TFP growth
Note: Analysis covers 38 upper middle-income emerging economies, including all G20 emerging economies.
Source: Penn World Tables, World Economic Forum Global Competitiveness Report, World Bank Doing Business Database.
(Change in TFP growth and structural barriers measured between pre-crisis (pre-2007)
and post-crisis (post-2010) multi-year averages)
TFP growth recovered beyond pre-crisis levels in emerging economies that reduced product
and labor market barriers but not in those where the barriers increased

39. Infrastructure investment is a key part of G20 agenda for strong,
sustainable, and balanced growth: an illustration
GDP: % deviation Trade balance: % GDP deviation
-5
0
5
10
15
20
25
30
35
2010 2012 2014 2016 2018 2020 2022
World High Income Developing
-6
-4
-2
0
2
4
6
8
2010 2012 2014 2016 2018 2020 2022
United States China
Source: Simulations with G-cubed model. All results are expressed as percent deviations from baseline.
Scenario showing gains from fiscal consolidation in advanced economies and redirection of
global savings to investment in infrastructure in developing countries
Channeling more global savings to infrastructure investment in developing countries would raise
global growth and reduce imbalances. Infrastructure modernization is important for longer-term
growth in advanced economies as well.

40. Infrastructure investment needs are large
$36 trillion
$57 trillion
0
10
20
30
40
50
60
70
Actual Requirements
$ trillion, 2010 prices
1994–2011 2013–2030
Source: McKinsey Global Institute: Infrastructure Productivity: How to Save $1 Trillion a Year, 2013.
Global Infrastructure Investment
• Infrastructure investment needs of $57 trillion over 2013-2030 ($3.2 trillion p.a.). This is
60% higher than over preceding 18 years.
• These are very conservative estimates of needed investment.

41. Infrastructure investment needs are especially large in
emerging and developing economies
Current investment and financing Future investment requirements
2008
South-South financing ($10–$20)
MDB financing ($20–$30)
Concessional ODA ($20–$30)
Private sector ($150–$250)
Govt. budgets ($500–$600)
$0.8–$0.9
2020
EAP (35–50%)
ECA (5–15%)
LAC (10–15%)
MENA (5–10%)
SA (20–25%)
SSA (5–15%)
$1.8–$2.3
By region
2020
Water (15–30%)
Electricity (45–60%)
Telecom (10–15%)
Transport (15–25%)
$1.8–$2.3
By sector
Source: World Bank Group staff estimates; “Infrastructure for Development: Meeting the Challenge”, G-24 and London School of Economics
and Political Science, 2012.
Incremental infrastructure investment needs of $1-1.5 trillion p.a. in medium term
($ trillion per year, 2008 constant prices – financing figures in $ billion)

42. -0.5
0.0
0.5
1.0
1.5
2.0
2.5
-1 0 1 2 3 4 5 6 7 8 9 10
Baseline 1/ Optimistic scenario 2/ Pessimistic scenario 3/
-5
-4
-3
-2
-1
0
1
2
3
4
5
6
-1 0 1 2 3 4 5 6 7 8 9 10
Debt-to-GDP Ratio
(percentage point deviation from baseline)
GDP
(percent deviation from baseline)
1/ Output elasticity of public capital = 0.10.
2/ Output elasticity of public capital = 0.19.
3/ Output elasticity of public capital = 0.
It’s not just the quantity; quality matters greatly
• Raising the quality of infrastructure investment reduces costs and increases productivity
• Greater efficiency can reduce infrastructure investment requirements by as much as 40 percent
Raising public infrastructure capital stock by 5 percent over 5 years: an illustration

43. Tighter and costlier capital will make the financing of
needed infrastructure investment a challenge
Source: World Bank Group staff estimates.
Net private capital flows to emerging and developing economies
0
1
2
3
4
5
6
7
8
-0.2
0
0.2
0.4
0.6
0.8
1
1.2
1.4
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013e 2014f 2015f 2016f
FDI Inflows Portfolio Equity Bond Flows Bank Lending ST Debt
$ trillion
As share of GDP (RHS)
Percent

44. Access to long-term finance for infrastructure has become
especially tighter since the global financial crisis
0
10
20
30
40
50
60
70
80
90
2000 2002 2004 2006 2008 2010 2012
Resource Related
Finance
Infrastructure
Government
Other
$ billion (gross)
Source: World Bank Group staff estimates; Dealogic.
Long-term cross-border bank lending to emerging and developing economies

45. Infrastructure agenda: a summing-up
• Large infrastructure investment needs in emerging economies.
Infrastructure modernization also important in advanced economies.
• Increased investment must be accompanied by efficiency
improvements―better planning & implementation, effective O&M.
• Improvements needed in regulatory and institutional framework for
private investment. Promoting competition in network industries.
• Mobilization of long-term financing: capital market development,
institutional investors, innovative finance, MDBs.
• Development of policies and financing tools to encourage
investment in “climate smart” infrastructure.
• G20 country-specific actions to be identified and discussed by the
Investment and Infrastructure Working Group and integrated into
growth strategies being prepared by the Framework Working Group.
• Need to better integrate the work of the G20 Development Working
Group, with a focus on lower income countries, into this agenda.

46. There is progress on competition and business
environment reforms but much remains to be done
UnitedKingdom
UnitedStates
Korea,Rep.
Canada
Australia
Germany
Japan
SouthAfrica
Mexico
France
SaudiArabia
Italy
Turkey
RussianFederation
China
Indonesia
Argentina
India
Brazil
40
50
60
70
80
90
100
DistancetoFrontier(percentagepoints)
2013
2008
2005
Source: World Bank Group: Doing Business 2014 database.
Distance to Frontier on Overall Doing Business Index

47. Specific priorities differ, but all G20 economies can improve
competition and business environment
0 100 200 300 400 500 600 700 800
Brazil
India
Argentina
Indonesia
China
Russian Federation
Turkey
Italy
Saudi Arabia
France
Mexico
South Africa
Japan
Germany
Australia
Canada
Korea, Rep.
United States
United Kingdom
Starting a business Dealing with construction permits Registering property
Paying taxes Trading across borders Getting credit
Protecting investors Enforcing contracts Resolving insolvency
Source: World Bank Group: Doing Business 2014 database.
Distance to Frontier on Key Dimensions of Business Environment
Percentage points

48. Reforms to improve the business environment should be
guided by an assessment of underlying policy gaps
0 10 20 30 40 50 60 70 80 90 100
Turkey
South Africa
Russian Federation
Mexico
Indonesia
India
China
Brazil
Argentina
Tax rates Access to Finance Labor regulations
Political instability Practices of the informal sector Inadequately educated workforce
Electricity Corruption Customs and trade regulations
Tax administration Crime, theft and disorder Transportation
Access to land Courts Business licenses and permits
Other
Percent of firms
Source: World Bank Enterprise Surveys (latest years).
Top ten business constraints reported by firms in G20 emerging economies

49. Lack of G20 leadership on trade reform
• G20 trade reform agenda characterized by low ambition
• Minimalist approach: a focus on avoidance of new
protectionist measures post-crisis rather than a proactive
agenda to further trade reform
• Even this minimalist objective not fully met
• Lack of will to push through the Doha Agenda or take on new
issues in trade
• Trade reform holds much untapped potential to boost global
growth
• Renewed focus on trade reform under Australia’s G20
presidency presents an opportunity

50. G20 has not adhered to its commitment to a standstill on
new protectionist measures
2009 2010 2011 2012 2013
0
100
200
300
400
500
600
World G20 Advanced G20 Emerging
Source: Global Trade Alert database.
Trade distorting measures implemented since the onset of the global financial crisis
Number of measures

51. All G20 members have taken trade distorting measures
since the crisis―some more than others
Note: Individual measures may have large or small trade coverage. These data on number of trade measures, therefore, are not necessarily
reflective of trade coverage. Figures for the European Commission include only EC-level measures and those for France, Germany, Italy, and UK
only national-level measures.
Source: Global Trade Alert database.
Number of trade measures implemented by G20 between November 2008 and December 2013
0
50
100
150
200
250
300
350
Trade liberalizing measures
Measures that may discriminate
Measures that are discriminatory

52. G20 use of antidumping actions, countervailing duties,
and safeguards
0
0.5
1
1.5
2
2.5
3
3.5
2005 2006 2007 2008 2009 2010 2011 2012
Percentofnon-oilimportedproductscoveredby
antidumpingactions,countervailingduties,andsafeguards
G20 emerging economies (stock) G20 advanced economies (stock)
G20 emerging economies (new actions) G20 advanced economies (new actions)
Source: World Bank Temporary Trade Barriers Database.
Increase in use of opaque, less transparent measures

53. Sizable coverage of imports by antidumping actions,
countervailing duties, and safeguards in some G20 economies
0
1
2
3
4
5
6
7
8
IND
(12.6)
TUR
(9.6)
USA
(3.5)
ARG
(13.6)
EUN
(5.3)
BRA
(13.7)
IDN
(7.0)
CHN
(9.6)
CAN
(4.5)
MEX
(8.3)
AUS
(2.8)
KOR
(12.1)
ZAF
(7.7)
JPN
(5.3)
Product lines
Weighted by
value of imports
Note: In parentheses is the country's simple average applied MFN tariff according to WTO (2012), in percent.
Source: World Bank Temporary Trade Barriers Database.
Percent of non-oil imports
Imports covered by stock of G20 antidumping actions, countervailing duties, and safeguards, 2012

54. Potential for gain from services trade liberalization is especially large
OECD Services Trade Restrictiveness Index (STRI)
Note: "G20 figure does not include Saudi Arabia and Argentina. Air transport and road freight
currently cover only commercial establishment (with accompanying movement of people).
Source: OECD STRI

55. How can G20 provide stronger leadership on trade reform?
• Integrate trade better into the G20 growth agenda.
• Restore credibility to G20 commitment to a standstill on new
protectionist measures. Institute effective monitoring and
accountability. Review and unwind measures already put in place.
• Build on Bali Agreement: trade facilitation; agricultural trade.
• Encourage and empower WTO to address key elements of the new,
“twenty-first century” trade agenda: issues relating to the rise of
GVCs― services liberalization, deep integration (regulatory
harmonization, competition policies, investment disciplines);
intersection of climate change and trade policies.
• Ensure that plurilateral initiatives complement and support an open
multilateral trading system.
• Lay the ground for WTO reform.

56. PRIORITIES
•Jobs challenges vary across countries
•Know your job challenge
•Remove or offset the constraints
LABOR POLICIES
•Stay on the “efficiency plateau”
•Avoid misguided interventions
•Build inclusive and sustainable social protection
FUNDAMENTALS
•Macroeconomic stability
•Supportive investment climate
•Human capital
Source: World Bank. World Development Report 2013: Jobs
Growth-enhancing structural reforms are central to job creation
A three-layered policy approach to job creation

57. Labor policies off the “efficiency plateau”
The “missing middle” in the distribution of manufacturing firms in India
Source: World Bank. World Development Report 2013: Jobs
0
5
10
15
20
25
30
1-4
5-10
11-20
21-50
51-100
101-200
>200
Jobs(millions)
0
1
2
3
4
5
1-4
5-10
11-20
21-50
51-100
101-200
>200
Jobs(millions)
— Employment size —

58. Meeting the jobs challenge
Three layers of an effective jobs strategy:
• At the foundation are fundamentals that drive economic growth:
sound macroeconomic management; an open and competitive
business environment supported by adequate infrastructure that
promotes private investment; and skill development aligned with
demand. This is a common agenda for all G20 economies.
• Balanced labor market policies: an important issue for those G20
economies with more rigid/distorted labor markets―some advanced
European economies, some emerging economies such as Brazil, India,
South Africa.
• Tailoring policies to country-specific challenges: aging societies,
economies with high youth unemployment, urbanizing economies,
economies with large informal employment, resource-rich
economies, economies with low women’s participation.