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Essential business priorities in a changing world

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Essential business priorities in a changing world

  • After navigating multiple global crises in recent years, the global economy appears to have stabilised in 2024, although geopolitical risks continue to loom. The G-20 economies have shown varied growth rates, with some experiencing robust expansion while others face challenges.
  • The B-20 process has been led by emerging economies over the past three years, with South Africa taking over leadership later this year. This has catalysed an unprecedented focus on the Global South, setting key priorities for inclusive development and economic growth.
  • Businesses across both developed and emerging markets have outlined essential policy actions that foster sustainable and inclusive growth, highlighting the need for corporate leadership in tackling global challenges.

Focus on Inclusive Development:

  • Inclusive growth is a central objective in today’s economic landscape, where businesses are encouraged to foster equitable development. Key to achieving this is skill development and education, which empower workers to adapt to evolving industrial landscapes. Businesses must:
    • Offer tailored programs for skilling and upskilling workers, especially women.
    • Collaborate with academic institutions to align curricula with industry needs.
    • Support on-the-job training to build capacity in emerging industries.
  • The convergence of financial inclusion and digital access has also played a crucial role in inclusive development. For instance, India’s success with the Unified Payments Interface (UPI) and the Jan Dhan Yojana has revolutionised financial transactions, with over 530 million accounts opened.
  • This success offers valuable lessons for other regions, including Africa, which has now joined the G-20.

Enhancing Food Security:

  • As the world grapples with the global food crisis, exacerbated by extreme weather events, businesses must play a role in fostering sustainable food systems and ensuring food security. Key actions include:
    • Using technology and digital tools to promote sustainable agricultural practices and reduce food waste.
    • Investing in infrastructure and agricultural technologies, such as precision farming, to boost food production.
    • Partnering with governments and international organisations to scale efforts aimed at food security.
  • The growing urgency for sustainable practices places businesses at the forefront of addressing global hunger and malnutrition, particularly by fostering innovation in agriculture and food distribution.

Resilient Global Trade and Fair Practices:

  • Global trade is essential for economic growth, but national security concerns and unfair trade practices are disrupting trade flows. To sustain growth, organisations such as the World Trade Organization (WTO) must be strengthened to address these challenges.
  • Businesses, meanwhile, must push for fair trade practices and work to overcome barriers that inhibit global supply chains. Cooperation between governments and industry players is key to ensuring resilient trade flows in an increasingly interconnected world.

Digital Transformation and Innovation:

  • Digital transformation, driven by innovations like Artificial Intelligence (AI), presents immense potential for addressing global challenges. Businesses should harness AI for responsible use in areas such as healthcare, climate change, and resource management. Actions to foster innovation include:
    • Engaging youth to develop creative solutions to pressing global issues.
    • Supporting social tech startups through investment and mentoring.
    • Collaborating on research and development through digital platforms.
    • Building STEM talent to drive innovation in emerging sectors.
  • By promoting AI and digital transformation, businesses can contribute to solving some of the world's most critical issues while boosting their own competitiveness.

The Sustainability Mission:

  • As the world transitions to a net-zero future, businesses must adopt fair and just climate policies that align with carbon mitigation goals. Small and medium enterprises (SMEs), in particular, need access to finance to meet these targets. Business contributions to the sustainability mission should focus on:
    • Expanding renewable energy capacity and the use of biofuels and green hydrogen.
    • Promoting the circular economy by adopting sustainable practices across industries.
    • Encouraging investments in carbon reduction technologies and sustainable infrastructure.
  • The private sector has a crucial role in ensuring that the global shift towards net-zero is equitable and inclusive, particularly for smaller enterprises and developing economies.

Corporate Governance and Trust Building:

  • At the heart of business success is corporate governance of the highest standards, which fosters trust between businesses, governments, and communities. Companies must go beyond standard compliance and regulations to ensure ethical operations, which are key to building long-term trust.

Conclusion: Businesses as Catalysts of Global Aspirations:

  • Through the B20 Global Institute, envisioned during India’s leadership of the B20, businesses will continue to play a pivotal role in shaping global policy recommendations. As the B20 process aligns with G-20 priorities, the private sector is positioned to drive the world’s shared ambitions towards inclusive growth, sustainability, and innovation.
  • By addressing global challenges in areas such as food security, trade, digital transformation, and climate change, businesses can catalyse these aspirations into tangible progress.

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