G20 Warns of Global Stability Risks Amid Multilateral Tensions
CAPE TOWN:
The weakening of multilateral cooperation poses a serious threat to global economic growth and stability, South African President Cyril Ramaphosa cautioned on Wednesday at a G20 finance meeting in Cape Town. The gathering was notably marked by the absence of the U.S. treasury secretary.
Finance ministers and central bank governors from the world’s major economies convened for two days of discussions, following a recent G20 foreign ministers’ meeting that was boycotted by U.S. Secretary of State Marco Rubio, who criticized the event for what he called “anti-Americanism.”
“In a time of escalating geopolitical tensions, maintaining a rules-based international order is crucial for managing disputes and fostering conflict resolution,” Ramaphosa stated in his opening remarks.
The G20, comprising 19 countries along with the European Union and the African Union, remains divided on key global challenges, including Russia’s war in Ukraine and climate change. These divisions have intensified as world leaders adjust to shifting U.S. policies following the return of President Donald Trump.
“Multilateral cooperation is essential to tackling unprecedented challenges such as slow and uneven economic growth, mounting debt burdens, persistent poverty, inequality, and the existential threat of climate change,” Ramaphosa added.
Calls for Cooperation Amid Economic Uncertainty
Italian Finance Minister Giancarlo Giorgetti echoed Ramaphosa’s concerns, warning that geopolitical conflicts could further slow global economic recovery, particularly in lower-income nations.
“Protectionism, trade restrictions, and political instability threaten economic resilience by driving up production costs, fueling inflation, and disrupting global value chains,” Giorgetti said.
As the current holder of the G20 presidency, South Africa has centered its leadership around the theme “Solidarity, Equality, Sustainability.”
U.S. Treasury Secretary Scott Bessent declined to attend the Cape Town summit, citing scheduling conflicts. Just days earlier, Rubio accused the G20 hosts of promoting an “anti-American” agenda, following criticism from Trump over South Africa’s land reform policies aimed at addressing historical inequalities from the apartheid era.
The U.S. was instead represented at the meeting by Federal Reserve Chair Jerome Powell.
Global Leaders Address Economic Challenges
The G20, which represents approximately 85% of the world’s GDP, serves as a platform for major economies to discuss international financial and economic stability.
While some nations opted not to send their finance ministers, officials from Britain, Switzerland, and France were present, alongside European Central Bank President Christine Lagarde.
