Brazil proposes to the G20 to launch a “new socio-environmental globalization”

The Minister of Finance of Brazil, Fernando Haddad, proposed this Wednesday to his peers from the G20 launch a “new socio-environmental globalization” not governed by profits “immediate”with the aim of reducing growing inequality in the world.

In the opening speech of the meeting, Haddad criticized that global economic integration was confused in recent decades with the “liberation of markets, flexibility” in the labor market, “financial deregulation” and the “free movement of capital”.

The meeting of G20 Economy Ministers will be held this Wednesday and Thursday at the Biennial Pavilion in the city of São Paulo, the financial center of Brazil, the country that holds the G20 Presidency this year.

Haddad, who participated remotely after testing positive for covid-19, stressed the need to advance on issues such as combating poverty and inequality, financing “effective” of sustainable development, a “fair taxation” and the “chronic debt of several countries.”

“We are aware that the global economic situation is challenging,” he admitted.

In this context, he reviewed the globalization process promoted in recent decades, which in his opinion has moved between its development “rampant” and “his denial.”

He recognized that it allowed millions of people to escape poverty, “especially in Asia”, but it also generated a “substantial increase in inequality.”

“It is an unsustainable situation that the 1% the richer he is 43% of financial assets”he denounced.

Likewise, he said that the financial crises of this century exposed “the limitations of globalization” in the terms in which it was stated and that now new challenges are being added that require a response of “emergency”like the climate crisis.

In his speech, Haddad pointed out that these new challenges hit poor countries and put their exports at risk, a problem aggravated by the “growing protectionist wave” put into practice after the covid-19 pandemic.

“Poverty and inequality need to be faced as global challenges,” that is why it is necessary “global alliance” that is guided by the principles of a “new socio-environmental globalization”he stated.

“We must redefine globalization” for the ones “capital flows go where the best opportunities are”, without looking at the profits “immediate” and “yes social and environmental criteria”he added.

Subsequently, the president of the Central Bank of Brazil, Roberto Campos Neto, stated that, despite the recent “progress” in controlling inflation on a global scale, there is still “risks” ahead and “work to be done.”

Campos Neto maintained that the greatest contribution of central banks to sustainable growth is to maintain inflation “low and predictable since price increases significantly damage “disproportionate” to the poorest.