16/11/2014 - Leaders of the G20 countries meeting at their Summit in Brisbane, Australia, have called on the OECD and IMF to monitor their commitment to boost economic growth and create jobs.
The leaders committed to raise global GDP by an additional 2.1% by 2018 and approved the Brisbane Action Plan. In support of this ambition, the OECD analysed more than 1000 new policy commitments from G20 countries and was asked to follow-up with the IMF on their implementation.
The monitoring mechanism aims to reinforce the credibility of G20 decisions. Australian Prime Minister Tony Abbott, who chaired the Summit, said the monitoring of the G20 countries’ growth strategies “will keep us accountable”.
OECD Secretary-General Angel Gurría said: “I welcome the achievements of the Summit. The 2 % target underpinned by national growth strategies is a masterstroke of the Australian G20 presidency that will help boost jobs growth and economic resilience globally. We will help to make this happen."
The leaders ’ communiqué endorsed commitments on a range of issues such as creating jobs, addressing gender imbalances, improving tax transparency, tackling corruption, and boosting trade and investment. OECD analysis on these issues is informing the policy options.
The leaders agreed to aim to reduce the gap in labour force participation rates between men and women by 25% by 2025. This, they said, would bring more than 100 million women into the workforce, increase global growth and reduce poverty and inequality. The OECD, with the ILO, has been charged with implementing this commitment which will help achieve the growth targets.
The G20 also agreed to close tax loopholes and prevent cross-border tax evasion.
“Profits should be taxed where economic activities deriving the profits are performed and where value is created,” the leaders said, welcoming “the significant progress (made) on the G20/OECD Base Erosion and Profit Shifting (BEPS) Action Plan to modernise international tax rules.” They committed to deliver the remaining actions of the Action Plan by 2015.
Secretary-General Gurría said at the leaders meeting: "With these steps, taxation is finally catching up with globalisation."
The communiqué adds: “To prevent cross border tax evasion, we endorse the global Common Reporting Standard for the automatic exchange of information on a reciprocal basis. We will begin to exchange information automatically with each other and with other countries by 2017 or end-2018, subject to completing necessary legislative procedures.”
Further information on the OECD’s contributions to the work of the G20 is available at www.mxjevk.cn/g20.
More information on the G20 Brisbane Summit is available at: www.g20.org