A new vision for agriculture
momagri, movement for a world agricultural organization, is a think tank chaired by Christian Pèes.
It brings together, managers from the agricultural world and important people from external perspectives,
such as health, development, strategy and defense. Its objective is to promote regulation
of agricultural markets by creating new evaluation tools, such as economic models and indicators,
and by drawing up proposals for an agricultural and international food policy.
A look at the news

G20 Finance: a lack of ambition

March 7, 2016

Finance ministers and central governors from G20 countries held their first meeting in Shanghai from 26-27th February to mark the first stage of the Chinese G20 presidency which will be holding Summit in Hangzhou for Heads of States and Governments next September. The official press release discussed the initiatives taken to improve the financial architecture; the role of multilateral development banks and cooperation with regards the fight against tax evasion. The main new announcement concerned the Chinese plan to establish an international research centre on tax policies to provide technical assistance to developing countries.

The release was disappointing, leaving some economists such as Ch. De Boissieu and J-H Lorenzi wondering how the G20 could return to being useful1. The proposals under consideration remain far short of the pessimistic outlook on the evolution of the global economy. “The risks and vulnerabilities have increased”, highlighted the G20 Finance press release, citing among others, the Brexit2, “the volatility of capital flows, falling commodity prices, heightened geopolitical tension and the influx of migrants in some regions”. “There are growing concerns” for the global economic outlook, even though “the magnitude of the volatility on equity markets does not reflect global economic fundamentals” the world`s financiers and central bankers tried to temper. Finally, the conclusion is that “monetary policy alone cannot lead to harmonious growth”.

Although the fall in commodity prices was discussed, the risks to which it subjects the global economy were not elaborated upon in the release even though there was much discussion denouncing the risk of deflation and recessionary effects on countries whose economy is largely based on raw materials. “The current risks of durably low inflation switching to deflation (...) are at least as serious as during the 70s, and to be overcome, require a paradigm shift in economic policy” stated the former US Secretary of State to the Treasury, Larry Summers3, in early March. Meanwhile, the IMF plans to set up a “safety net” that would provide financial assistance to commodity exporters undermined by falling prices, even referring to “new financial mechanisms”4.

In 2011, the G20 Agriculture opened a positive route by positioning itself as an incubator for new proposals for a new global agricultural governance, a bearer of transparency and new regulatory practices in world agricultural markets. Global deflationary risks and economies based on raw materials entering into recession should be considered important enough that a next step in the reconstruction of a global governance for commodity markets, including agriculture, should be encouraged in the G20.

1 Et si le G20 redevenait utile ? a Tribune of the french newspaper « les Echos » by Christian de Boissieu and Jean-Hervé Lorenzi, 3 march 2016.
2 According to a YouGov poll published in late September 2015, the battle promises to be tight between the two groups (40% of Britons looking to go against 38% who want to stay). The referendum will be held on June 23, 2016
3 http://www.telegraph.co.uk/finance/financetopics/davos/11362699/Larry-Summers-warns-of-epochal-deflationary-crisis-if-Fed-tightens-too-soon.html
4 To read Christine Lagarde’s announcement on IMF’s website, follow this link : https://www.imf.org/external/np/speeches/2016/011216.htm

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Paris, 15 December 2018