Rio G20 Summit ends with historic push for wealth tax and global reforms

By Latin America Reports | Created at 2024-11-20 15:16:50 | Updated at 2024-11-23 15:41:30 3 days ago

São Paulo, Brazil – The G20 Summit, hosted in Rio de Janeiro, concluded on Tuesday with the adoption of a joint declaration signed by the leaders of the world’s major economies. The final document, achieved through diplomatic negotiation, addresses international economic and political challenges, social inclusion, poverty and hunger eradication, sustainable development, energy transition, climate change mitigation, and reforms to global governance institutions.

The crafting of a text that garnered broad consensus among leaders was the result of intense diplomacy. After numerous drafts and language revisions, a historic Brazilian-backed provision made its way into the final declaration: taxation for the ultra-wealthy. Argentina’s President Javier Milei openly resisted the proposal but ultimately conceded under the weight of unanimous support from other nations.

The progressive taxation of individuals with extreme wealth was described in the declaration as “one of the primary tools to reduce internal inequalities, enhance fiscal sustainability, promote budgetary consolidation, foster strong, sustainable, balanced, and inclusive growth, and advance the realization of the United Nations’ Sustainable Development Goals (SDGs)”.These 17 targets, set to be achieved by 2030, aim to eradicate poverty, combat climate change, promote family agriculture, achieve zero hunger, and ensure universal access to clean water and basic sanitation, among other objectives.

Conflicts in Gaza and Ukraine

The ongoing wars in Gaza and Ukraine also featured prominently in the G20 communiqué. The leaders condemned both conflicts and called for renewed efforts to secure peace in Eastern Europe and a comprehensive ceasefire in the Middle East.

“We welcome all relevant and constructive initiatives supporting a comprehensive, just, and lasting peace, in accordance with the Purposes and Principles of the U.N. Charter, to foster peaceful, friendly, and good-neighborly relations among nations,” a part of the declaration reads.

This year’s summit marked Brazil’s first time hosting the annual meeting of the G20, a group comprising 19 countries and two regional blocs: the European Union and the African Union. Together, G20 members represent about two-thirds of the global population, produce 85% of the global GDP, and account for more than 75% of world trade. The Rio summit drew 55 delegations from 40 countries and 15 international organizations. In addition to the G20 members, several other nations attended as observers, participating in discussions and bilateral meetings.

Alliance against hunger and poverty

The host country, Brazil, set the agenda for the conference, championing a global alliance against hunger and poverty. The initiative has garnered commitments from 82 countries thus far, with Brazilian officials hoping to reach 100 total. Participating nations pledge to reduce hunger and poverty domestically, with some, like Norway, committing additional funds to support public policies targeting these issues in developing regions.

When launching the alliance, which aims to eradicate global hunger by 2030, President Luiz Inácio Lula da Silva delivered a stark message.

“In 2024, 733 million people around the world remain undernourished—equivalent to the combined populations of Brazil, Mexico, Germany, the United Kingdom, South Africa, and Canada facing hunger. In a world where military spending reaches $2.4 trillion, this is unacceptable. It is the duty of those gathered around this table to eliminate this shameful stain on humanity,” he declared.

Focus on global governance reform

Another key priority for Brazil was the enhancement of global governance structures. The final declaration calls for international institutions to be reformed to reflect the political, economic, and social realities of the 21st century, ensuring greater representation, effectiveness, and transparency.

The summit brought together influential global figures, including U.S. President Joe Biden, China’s Xi Jinping, and France’s Emmanuel Macron. The discussions took place at Rio’s Museum of Modern Art, providing a symbolic backdrop for international collaboration. The event is likely to serve as one of President Biden’s final international engagements before he leaves office in January 2025, capping a 53-year career in public service.

Biden’s departure and the return of Donald Trump to the White House have already raised concerns within the international community, given Trump’s previous protectionist and anti-globalization stance during his first term and in his recent electoral campaign. Whether such rhetoric will translate into action remains to be seen.Starting Wednesday, the G20’s rotating presidency will be passed from Brazil to South Africa, the host country of next year’s summit.