Recommendations of the Civil 20 on the G20 and Post-2015 Development Agenda1 A. PREAMBLE 1. We, representatives of international civil society, united within the “Civil Twenty” process (ะก-20), believe that the G20, as a forum for international cooperation on the most important global economic and financial issues - and its individual member governments - should support the UN-member led process to create a post-2015 development agenda, while also accelerating progress to achieving the Millennium Development Goals (MDGs). 2. Although progress towards reaching the goals has been uneven, the MDGs have greatly contributed to freeing people from extreme poverty and multiple deprivations. Extreme poverty is reported to be falling in many regions. The target of halving the proportion of people without access to improved sources of water has been met. The parity between girls and boys in primary education has also improved significantly, although the quality of education remains a pressing concern. 3. However, many of the MDGs are still set to fall short of reaching their targets by 2015. The continued support of G20 countries will be crucial in order to accelerate progress on these remaining important goals. 4. Since the Millennium Declaration and the creation of the MDGs in 2001, the world has changed a lot. Most of the world’s extreme poor no longer live in the least developed countries, but rather in middle-income countries. Inequality between the rich and poor is increasing. And climate change poses one of the single greatest threats to poverty reduction. The new global development agenda needs to take into account both the changing contexts and the lessons learned from attempts to achieve the MDGs. 5. The process to reach a consensus on what should come after the MDGs expire in 2015 is already underway. Agreeing to and adopting a new set of development goals in 2015 will not just require the participation of civil society, the private sector and other stakeholders, but the commitment of all the world’s governments, both developed and developing countries alike. 6. In the case of the MDGs, by the time the UN proposed the goals, general consensus had already been developed on the main conceptual issues of international development.2 In the case of the post-2015 agenda, it is important that UN member states lead the development of new goals through a legitimate, open, transparent, accountable and participatory process. 7. G20 members should play a role in supporting this process by helping to build consensus among its member countries. G20 member governments will also clearly have a role in fulfilling commitments and reaching agreed goals under the new post-2015 framework. 1 Note: This position paper represents the views of the organizations that took part in G20 consultations from Dec 2012 to April 2013 and is not exhaustive. 2 This consensus was based largely on the OECD DAC report on ‘Shaping the 21st Century’ and several other meetings and reports. 1 8. The Civil-20 recommends that: a. G20 members should continue to focus their efforts on achieving the MDGs and participating in the development of a single, ambitious and comprehensive post-2015 development agenda; b. In order to ensure that it contributes effectively to current and future development agendas, the G20 should: i. Revise its current development agenda; ii. Ensure its core policies and actions are development-friendly; and iii. Deliver greater G20 transparency and accountability. B. G20, THE MDGS AND THE POST-2015 PROCESSES Demonstrate political will and consolidate financial resources to achieve the current MDGs 9. G20 members should ensure that the process to develop a post-2015 agenda does not impede the achievement of the current MDGs. Reaching the MDGs should be a top priority that lays the groundwork for even greater development achievements after 2015. 10. G20 members should: a. Demonstrate and act on their commitment to achieve the MDGs; b. Commit sufficient resources to achieve the MDGs by committing sufficient ODA while respecting principles for aid effectiveness and mobilizing sufficient domestic resources, as appropriate, including by enacting progressive tax reforms and promoting budget transparency; c. Promote new approaches to development financing by agreeing on existing and innovative financing mechanisms3 to accelerate progress to meet the current MDGs, with a view to utilizing these mechanisms to finance the post-2015 framework. Support the current UN-member led post-2015 process 11. G20 members should encourage open, transparent, participatory and accountable processes within the UN to reach a global consensus on the post-2015 development agenda. The efforts currently underway to develop a framework should be supported and endorsed by the G20. 12. While supporting the current UN processes, the G20 should use its comparative advantage as the key economic international forum, to build consensus for a post-2015 3 Innovative financing comprises mechanisms of raising funds or stimulating actions in support of international development that go beyond traditional spending approaches by either the official or private sectors (OECD, 2009, Innovative financing to fund development: progress and prospects). 2 framework among key global players, especially the emerging powers and BRICS countries. 13. More specifically, G20 members should deliver collective statements: a. In support of the UN inclusive consultation process on the post-2015 agenda, endorsing a bottom-up process for the development of the post-2015 framework and the full inclusion of southern perspectives in the new framework; and b. Defining the role of the G20 in relation to the development of a post-2015 framework, including the sustainable development agenda, in order to ensure there is no duplication with UN processes. Provide inputs to the post-2015 process in the areas of G20 expertise 14. In supporting the UN process already underway, the G20 can utilize its expertise to narrow the development gap and deliver more inclusive economic growth across the world. 15. The G20 should focus its post-2015 discussions within its area of expertise and mandate. 16. Specifically, the G20 should: a. Take stock of evidence on global and national inequalities, their impact on growth and development, and policies that help to overcome inequality and in order to help define how inequality could be tackled in a post-2015 agenda; b. Focus on the underlying economic and social drivers of poverty; share experience and best practices in areas such as infrastructure, narrowing the productivity gap between rich and poor countries, food security and nutrition, health, environmental sustainability, inclusive green growth with resilience, anti-corruption and human resource skills development. C. THE G20 AGENDA AND DEVELOPMENT 17. G20 policies and practices as a whole must contribute to reducing inequality, ensuring development is sustainable and tackling poverty head-on. Address Inequalities 18. In 2009, the G20 adopted the Framework for Strong, Sustainable and Balanced Growth to restore global growth and confidence, and avoid future crises. Laying the foundations for spreading the benefits of growth more broadly is vital if the G20 are to deliver on this commitment. 19. The G20 should: a. Recognize the importance of measuring the distribution of income growth as well as the average national rate; b. Recognize the importance of measuring and controlling inequality; and 3 c. Endorse the measurement of inclusivity (the distribution of growth and inequality) and sustainability (ecological footprint) alongside GDP, and call on international financial institutions to imbed these measures into their work. Reprioritization of the Seoul Multi-Year Action Plan 20. As G20 leaders explained at the Seoul Summit in 2010: “Narrowing the development gap and reducing poverty are integral to our broader objective of achieving strong, sustainable and balanced growth and ensuring a more robust and resilient global economy for all.” 21. The expiration of the Seoul Multi-Year Action Plan (MYAP) offers an opportunity for the G20 as a whole to reformulate and reprioritize its work on development. As a matter of priority, the Development Working Group should adopt a new agenda to deliver fairer economic growth in developing countries. 22. Specific, measureable and time-bound commitments on key issues need to be central to the successor to the MYAP, so that the Development Working Group can better focus on delivering more inclusive economic growth in developing countries, and achieving agreed upon G20 development objectives. 23. The G20 should prioritize the following key areas, making them - with specific measurable targets and indicators - the basis of the successor of the MYAP: a. Deliver a reduction in income inequality by setting ambitious national targets to reduce inequality between the highest and lowest income quintiles; b. Ensure food security including by addressing the root causes of food insecurity, the importance of nutrition, and the consequences of food price volatility; c. Take action to address tax havens and improve tax transparency so that developing countries do not lose the revenue they need to invest in ending poverty and inequality; d. Advance efforts to improve governance and tackle corruption, within G20 countries and abroad; e. Assist low-income countries to establish, develop and finance social protection systems that can be scaled up to support poor men and women’s livelihoods and protect poor and vulnerable populations during crises and shocks and throughout their lifecycle; f. Promote fairer fiscal systems, including the promotion of more redistributive or progressive taxation policies, to ensure the availability of sufficient revenue for transformative services such as universal healthcare and education; and g. Agree on existing and innovative financing mechanisms to ensure there are sufficient finances to narrow the development gap. 4 Ensure that G20 core policies have a positive impact on Development 24. A wide range of issues such as investment, trade, migration, climate change, security and technology play an important role in contributing to the growth and development of developing countries. While the Multi-Year Action Plan is one way in which the G20 can support a new post-2015 framework, the core G20 macroeconomic and financial policies also have a significant impact on development. 25. Acknowledging the impact of ‘beyond aid’4 issues on development, the principle of Policy Coherence for Development (PCD) is well-established.5 The G20 should ensure that its own practices confirm with this principle and put in place mechanisms for its effective implementation. Improving the development dimensions of the G20’s core polices would be a huge step forward for both development outcomes and the G20 itself. The G20 should broaden its development focus to explicitly cover the implications of G20 core actions, for example, promoting development-friendly financial and trade regimes, dealing with global imbalances in trade, and tackling energy subsidies. 26. Specifically, the G20 should: a. Mandate the Development Working Group to play a leading role in ensuring policy co-ordination for development in all G20 core policies and actions; and b. Commit to develop and adopt a Policy Coherence for Development (PCD) to ensure that decision-making on core G20 policies and actions includes an assessment of the impact on developing countries. This policy should be developed in a transparent and timely manner and include consultations with relevant stakeholders including developing countries, civil society and the private sector. Greater G20 Transparency and Accountability 27. The need for the G20 to have accountability mechanisms is well understood. In relation to the post-2015 process, greater G20 transparency and accountability would provide a better understanding of the G20’s contribution to the development agenda, and the foundation would be laid for the proper planning of its ongoing contribution to the attainment of new framework. 28. The Los Cabos Accountability Assessment Framework outlines the G20’s plans to assess its progress to meet its commitment to achieve strong, sustainable and balanced growth. 29. Civil society welcomes those commitments as well as the intention “to build on an innovative global development partnership that will focus on concrete and sustainable results, deepening our engagement with the private sector and civil society.” ‘Beyond Aid’ issues include trade, migration, investment, environmental issues, security and technology. The ‘Beyond Aid’ agenda is to ensure that policies in these issues have a positive impact on development. 5 The principle of Policy Coherence for Development (PCD) has been formally adopted by the OECD and the European Union. 4 5 30. In order to achieve this, G20 should foster greater accountability by acting on its commitments taken in Las Cabos and should develop a comprehensive, inclusive and transparent accountability framework. 31. As part of this framework, the G20 should: a. Publish in advance the terms of reference and member information for working groups and review mechanisms; b. Make available for public comment all expert group and commissioned reports, assessments and recommendations scheduled for presentation at the Summits in a timely manner; c. Publish advance meeting notices that include a list of the G20 commitments and outcomes under review; d. Establish clear rules requiring all G20 working groups and peer review mechanisms to seek substantial input from civil society, the private sector and affected communities; e. Ensure greater outreach with developing countries by ensuring that a greater proportion of the Development Working Group’s membership is made up of developing countries; and f. Institutionalize the Civil 20 to ensure that the G20 engages with civil society on an ongoing basis, on a par with the B20 and L20 consultations. 32. At this G20 summit, G20 members have an important opportunity to improve their development impact and to ensure their positive contribution to the post-2015 development framework, as outlined in the above recommendations. 33. The G20 must step up to the challenge to prove its relevance to the world’s poorest people and to demonstrate that it is taking a long-term view on the world’s interests. 6