- Report commissioned by the G7 Economic Resilience Panel on how global economies can better prepare for, respond to and recover from economic shocks
- Focus on the benefits of open interconnected markets, how best to improve supply chain resilience, and harness technological innovation
- Recognises role of G7 in learning from the pandemic and galvanising action to protect the global economy
The Prime Minister’s G7 Envoy for Economic Resilience, Lord Sedwill, has welcomed a new report by the OECD published today (23 March 2021), to support the UK’s Presidency of the G7 and its efforts to agree new measures to protect the global economy from future shocks.
The report was presented to the G7 Economic Resilience Panel chaired by Lord Sedwill earlier this month. In particular it suggests governments can learn from the international supply issues during the pandemic, by considering a stress test for systemically important supply chains, just as the world put in place for banks after 2008 to ensure international financial stability and confidence in global markets. It also considers how new multilateral mechanisms can be used to ensure a stable global market for raw minerals critical to the net-zero transition and future digital economy.
The report, titled Fostering economic resilience in a world of open and integrated markets: Risks, vulnerabilities and areas for policy action was commissioned by the Panel to inform its work on how the G7 can work together to make global markets more resilient, effective, diverse and sustainable. This work is a vital part of how our economies can build back better from the coronavirus pandemic, and anticipate future global economic crises.
The wide-ranging recommendations of the report will be considered in detail by the G7 Panel on Economic Resilience, before the Panel submits its own recommendations to G7 Leaders at their June Summit in Cornwall. Key areas of focus for the Panel will be strengthening diverse and interdependent global supply chains, international standards and regulation, and adapting modern markets in response to technological innovation.
Lord Sedwill, Chair of the G7 Economic Resilience Panel said:
The unprecedented impact of the covid pandemic on the global economy has highlighted issues of resilience, arising from the growth of monopolies, geopolitical trade tensions, global economic governance falling behind innovation and technology, and the supply of the critical elements essential to the future economy. In response, we should renew our common purpose and commitment to open, well-regulated global markets which promote the green transition, inclusive growth and economic resilience as we build back better.
On behalf of the Panel, I want to thank the Secretary General and his team at the OECD for their work on this report. I look forward to working with my fellow panelists on addressing these shared challenges, and to putting a concrete set of initiatives to G7 leaders in June.
Angel Gurría, Secretary General of the OECD said:
As we have seen in the past decade alone, in today’s interconnected world, shock events can quickly cascade across borders and economic sectors, and have devastating effects on people’s lives, jobs and opportunities, and on their trust in governments, institutions and markets.
Building economic resilience in the face of future shocks is a global challenge for the post-COVID world. For global markets and supply chains to serve as a source of resilience, governments and the public need to have the confidence that markets are and will remain open and fair, including during times of stress.
Notes to Editors
The full report is available via the OECD here.
Full membership of the Panel and an overview of its work is available here.