IMF CONNECT

The Argentine Presidency is focusing its work in the Finance Track on two priorities: the future of work and infrastructure for development.

The future of work: understanding change; embracing opportunities and addressing challenges

Rapid technological change is reshaping the global economy and may continue to impact it in multiple and unpredictable ways; particularly, it is changing the traditional structures of work. There are significant opportunities to achieve the G20’s collective goal of strong, sustainable, balanced and inclusive growth by harnessing these new trends and ensuring that their benefits are widely shared.

The Finance Track has reached a common understanding of the current and potential impacts of technological change on productivity, growth, employment, and inequality.  Based on this diagnosis, the G20 developed the “G20 Menu of Policy Options for the Future of Work”. The Menu, which was endorsed by the G20 Finance Ministers and Central Bank Governors in July, highlights some key policy actions which countries could consider to: (i) harness technology to strengthen growth and productivity; (ii) support people during transitions and address distributional challenges; (iii) secure sustainable tax systems; and (iv) ensure the best possible evidence informs our decision-making.

Infrastructure for development: mobilizing private resources to close the infrastructure gap

Infrastructure investment can boost productivity and sustain long-term growth. Moreover, infrastructure provides both physical and digital access necessary for our citizens to seize the opportunities of the new economy. Despite G20 efforts, the infrastructure investment gap remains significant in both developed and emerging economies. Given the large pools of private savings in the hands of institutional investors, mobilizing private sector financing is crucial to reducing the global infrastructure gap. The Finance Track is working towards developing infrastructure as an asset class. To this end, the work is being guided by a multi-year roadmap -the “Roadmap to Infrastructure as an Asset Class”- developed under the Argentine Presidency and endorsed by G20 Ministers and Governors in March.

Work has already begun under the Roadmap: in July, Ministers and Governors agreed on a set of Principles for the Infrastructure Project Preparation Phase, which will help in the pre-investment and planning phases of infrastructure projects. Progress has also been made, and will continue towards the Summit, on key areas such as financial engineering, risk allocation and mitigation, data availability, and contractual and financial standardization.

Besides both priorities, the Finance Track continues its work to ensure the financial system remains resilient and supportive of growth, and that the international financial architecture is well equipped to respond to future challenges. The agenda also covers areas such as global economy and framework for growth, financial inclusion and sustainable finance.