The Annual Meetings of the Boards of Governors of the WBG/IMF concluded on Sunday after reaching important agreements required to face climate change, lead to the alignment of the Pacific Alliance countries and set up the plan against tax evasion by multinationals.
Climate change
The global event, that took place in Lima, helped to raise an additional US$15.00 billion for climate funding in the framework of the COP21 to be held in Paris this November, Peru's Finance Minister Alonso Segura informed.
The objective is to reach "US$100.00 billion by 2020," he added.
V20 Creation
Ministers from the 20 most vulnerable countries to climate change launched the V20 bloc to collect resources with the aim of tackling the impact of global warming posed on their territories.
It should be noted this group -that includes some poorest and smallest countries of the world- is the opposite of the G20; composed of leading industrialized economies.
G20 against the tax evasion
At the same time, the G20 Finance Ministers agreed on implementing a plan against the tax evasion through a comprehensive, coherent and coordinated reform. Thus, they provided full support to the OECD/G20.
The said measures, to be submitted to the G20's Heads of State, will be discussed and executed in the framework of the annual meeting to be held in Antalya Turkey on November 15-16.
OECD
On the other hand, the Ministers reaffirmed the need for the Organization for Economic Co-operation and Development (OECD) to elaborate an inclusive assessment framework by the beginning of 2016.
Pacific Alliance
With regard to South America, the Pacific Alliance member countries (Chile, Colombia, Mexico and Peru) reported on progress made in the financial integration process.
The Pacific Alliance adopts measures, which financially aligns its member countries. Thus, the integration process can be developed as established in accordance with the agenda, the Finance Minister indicated.
Exempting capital gains from income tax –adopted by Peru- is a hybrid emerged from mechanisms implemented in Chile and Colombia. The move has allowed to achieve a homogeneous model.
"We are working on a common agenda and making progress through the experiences and practices developed by other countries," Segura commented.
Catastrophic Risks
The 7th Pacific Alliance Finance Ministers Meeting was also held within the framework of the Boards of Governors of the WBG/IMF.
The said meeting addressed the progress achieved by technical groups, derived from the work agenda established through the Paracas Declaration signed last July. Likewise, mechanisms to keep advancing towards concrete achievements were implemented.
With regard to Catastrophic Risk Management, it was agreed to create a report -along with the World Bank Group- to implement a financial mechanism, which grants the joint risk transfer derived from natural disasters.
Inclusive Forum Creation
In this sense, they also agreed to elaborate a report on financial tool implementation linked to investment in infrastructure, which will to include the review of the judicial, regulatory, fiscal and financial framework.
Similarly, the Ministers highlighted the creation of forum to promote inclusive financial mechanisms in the region.
Transparency in China
The IMF’s First Deputy Managing Director David Lipton announced last Wednesday that China joined the General Data Dissemination System (GDDS) of the multilateral organization.
China implements international standard measures and shows its strong will and commitment to improve the data transparency.
(END) SDD/JJN/HMC/MVB