G20 china_web

Stories from inside summitry
The G20 encourages countries to take
difficult decisions in a global context
34
Number of sherpas attending
the Hangzhou Summit
Caroline
Atkinson
Sherpas managed
to take the first
steps towards
an agreement
on curbing
hydroflurocarbons
In 2012, under Mexico’s G20 presidency,
there was a decisive moment. All eyes were
on the financial crisis in Europe that had
spread beyond Greece, Ireland and Portugal
to threaten Spain and Italy as interest rates
shot up and financial markets wondered if
the eurozone would break apart. In a heated
session, sherpas brokered a deal between
Germany and its southern European
neighbours, and backed by emerging
markets, to have the leaders’ communiqué
refer to the dangers of financial instability
in Europe and the importance of breaking
the feedback loop between bank debt
and sovereign debt. This was code for
supporting the rescue of troubled banks
that would alleviate some pressure on
their sovereign governments.
G20 leaders outside Europe made clear
their concerns that if Europe’s problems
were not resolved effectively, the rest of the
world economy would suffer. Overnight, the
agreement almost broke down when those
Europeans not at the summit complained.
Some emergency tweaking of the language
enabled leaders to agree. This did not
resolve the European crisis, but it helped
pave the way to the actions in Europe that
did calm markets.
At each subsequent summit, leaders
grew closer to agreement that the recovery
needed to be bolstered, although gaps on
fiscal policy remained.
Historic agreements
Other important agreements helped to set
the world on a better path than would have
been possible without the G20.
In 2013, in Saint Petersburg, while
leaders grappled with Syria, their sherpas
discussed issues such as climate and
managed to take the first steps towards
an agreement on curbing the use of
hydrofluorocarbons. There had hitherto
been disagreement and distrust between
Head of Global Policy
Google
Caroline Atkinson is the Head of
Global Policy at Google. Prior to
joining Google, Caroline served
as President Barack Obama’s
Deputy National Security Adviser
for International Economics.
She supported the President at
international economic summits
and coordinated the policymaking
process for international economic
affairs. Before working directly for
President Obama, she held senior
roles at the International Monetary
Fund, the US Treasury and the
Bank of England. Atkinson was
also previously a journalist for The
Washington Post, The Economist
and The Times of London.
many emerging markets and advanced
economies, including the United States
and Europe.
Officials from countries with differing
views huddled for several hours, using the
the leaders’ meeting to drive compromise.
The stage was set for a successful outcome
on trade at the Bali ministerial meeting of
the World Trade Organization later that
year, when one sherpa from a key emerging
market broke into the tired debate to say
“let's take off our trade negotiator hats and
put on our G20 hats” to find agreement.
The following year at the G20 summit
in Brisbane, India – the last remaining
holdout on the Bali deal – announced that
its conditions for joining the consensus
were met. This was another example of the
G20’s power to encourage governments to
take difficult decisions in the context of a
global agreement that compromise is in the
interests of all.
Leaders responded to the Ebola
crisis by agreeing to a special statement
and actions to support better health
systems in vulnerable African countries.
Sherpas worked on the statement in the
understanding that it was for health experts
to take the work forward, but with the
support of G20 leaders to help to get action.
Bringing countries together
The 2015 G20 summit in Antalya, Turkey,
ahead of the Paris climate meetings, proved
important for bringing together India and
the United States, China and Argentina,
Europe and Korea – countries that among
them account for the bulk of carbon
emissions. The experts on climate were
not there but were mostly on the end of a
telephone line. The determination to forge
agreement expressed by leaders when
they met enabled sherpas to find a path
to support a good outcome in Paris a
week later. G20
G7G20.com September 2016 • G20 China: The Hangzhou Summit 241