G20 china_web

Structural reform and SMEs
G20 leaders have agreed to monitor
and be accountable for growth
The G20 summit in China should focus
on planning and implementation
ISTOCK IMAGES
Bernhard
Welschke
Secretary General
Business and Industry
Advisory Committee
Several of these reform priorities,
particularly those that enhance trade and
foreign direct investment, are good for
growth and social inclusion. They enhance
the ability of firms and individuals to
participate in markets. For example, the
financing of small- and medium-sized
enterprises benefits from better access to
global value chains. In cases where negative
side effects of some structural reforms
are apparent, flanking policies could be
introduced to offset these effects.
Ensuring implementation
The next step is implementation. G20
leaders have agreed to “monitor and
hold each other to account” for the
implementation of their growth strategies
in the coming years, based on continued
analysis by the OECD and the International
Monetary Fund. Business agrees with a
great majority of the OECD’s structural
policy recommendations. However, BIAC’s
economic survey found that more than
70 per cent are perceived as only partly
implemented. Reasons for the current
lack of implementation include political
economy factors or social concerns. Another
possible reason may be shortcomings in
regulatory policymaking procedures.
Consultation processes on new policies
and regulations often appear insufficient.
This could undermine stakeholder support
for new reforms. Many governments do not
make sufficient use of impact assessments
to help make the case for reform.
G20 leaders have made commitments
to place structural reform at the centre of
the global growth agenda. The focus at
China’s G20 summit should be on their
implementation. This will call for strategic
planning, consultation and communication
over the next years to make a strong case to
G20 citizens and stakeholders. International
cooperation is needed more than ever.
The OECD – together with the business
community, through BIAC – is well placed
to support the G20 in this endeavour. G20
Bernhard Welschke has been
Secretary General of the Business
and Industry Advisory Committee
(BIAC) to the Organisation for
Economic Co-operation and
Development (OECD) since 2013.
An economist, he joined BIAC
after a successful career in the
Federation of German Industries
(BDI), leading the departments
for European affairs and global
governance, among other
assignments. He represented
German industry and trade in
Washington DC from 2006 to 2010.
Prior to that, he was a member of
the European Union’s Economic
and Social Committee.
@BIACOECD
www.biac.org
G7G20.com September 2016 • G20 China: The Hangzhou Summit 115