The CGD Podcast: The G-20 Development Working Group Agenda – Clare Walsh and Scott Morris

Date: April 14, 2014
Host: Lawrence MacDonald (Center for Global Development)
Guests: Clare Walsh (Chair, G20 Development Working Group; Australian Department of Foreign Affairs and Trade), Scott Morris (Senior Visiting Associate, CGD; former U.S. Treasury)

Episode Overview

This episode examines the G20’s Development Working Group (DWG) — its origins, evolving agenda, and the dynamic of international collaboration within it. Clare Walsh, chairing the group during Australia’s G20 presidency, and Scott Morris, with experience from the U.S. Treasury, discuss how the G20 DWG sets priorities and drives meaningful change, focusing on practical development policies for greater global impact. The episode also dives into how the group’s agenda was streamlined, details the five focus areas for 2014, and explores the real-world effects of its discussions and decisions.

Key Discussion Points & Insights

1. What is the G20 Development Working Group? (01:07 – 03:43)

• Origins: Established in 2010 during South Korea’s G20 presidency to address the needs of developing countries in the context of global economic growth.

• Purpose: To create a separate forum within the G20, including international organizations and representatives of developing regions, that considers priorities both important to these countries and relevant to the G20 mandate.

  “It was in recognition that the developing countries, the non G20 members, are really important contributors to economic growth, which is the G20's mandate.”
  — Clare Walsh (01:31)

• Participating Entities: Not only G20 members but also key global organizations (like World Bank, IMF, UN agencies), and representatives from regions such as Africa and ASEAN.

2. Evolution of the DWG Agenda: From Nine Pillars to Five Priorities (02:29 – 12:54)

• Initial Scope: Began with nine “pillars” or workstreams—so broad it risked being unmanageable.

• Learning and Reflection: By the Russian G20 presidency (2013), conducted a comprehensive review (accountability report) to measure progress and set priorities.

• Agenda Streamlining: Reduced to five focused areas for greater effectiveness.

  “We narrowed down the agenda into five areas.”
  — Clare Walsh (03:36)

The Five Current Focus Areas (12:54 – 13:17)

1. Infrastructure (specifically, investment in infrastructure)
2. Domestic Resource Mobilization
3. Financial Inclusion
4. Food Security
5. Human Resource Development

3. How Does the Group Work? International Policy in Practice (03:43 – 11:09)

• Comparison with UN Negotiations: G20 DWG meetings are smaller and more targeted than typical UN forums, allowing for meaningful, flexible discussion — but participants still represent broad national positions.

• Engagement: Includes whole-of-government consultation before meetings and incorporates expert input.

  “Discussions are quite targeted... It requires the international organisations also to think quite comprehensively across rather than just within the mandate of individual organisations.”
  — Clare Walsh (04:20)

• The Feedback Loop: Practical proposals are shaped through debate, drawing from diverse government and organization perspectives, before being refined and adopted.

  “Because you're getting different perspectives... you shape the initiative... so that you can actually deliver something at the end.”
  — Clare Walsh (09:48)

4. Deep Dive: The Five Priorities

a. Infrastructure (20:07 – 25:32)

• Centrality to Growth: Infrastructure remains a top G20 priority, vital for both developed and developing countries.

• Barriers: Main challenges include attracting private investment, project preparation, and risk management.

• Current Focus: Shifting from simply pooling donor resources (as G7 might) to enabling conditions for private and multilateral investment, with an emphasis on project preparation facilities in regions like Africa and Asia.

  “It can't just come from public sources... what are the sorts of things that are barriers at the moment to infrastructure investment in developing countries?”
  — Clare Walsh (20:33)

  “It's impressive where the group is right now, particularly using the DWG in one way that's complementary to what this other work in finance ministers is doing.”
  — Scott Morris (23:29)

• Real-World Impact: E.g., a single infrastructure project in Bangladesh could raise GDP by 1 percentage point (25:20).

b. Domestic Resource Mobilization (DRM) (13:26 – 17:28)

• Focus Shift: Talks are less about traditional aid and more about empowering countries to raise and manage their own resources, such as through tax reform and combating tax base erosion.

• Key Issues:

  • Base Erosion and Profit Shifting (BEPS): Protecting the tax base from being moved offshore.
  • Automatic Exchange of Information: Facilitating cross-border tax transparency and compliance.

  “If a country is going to develop with some strength, then a domestic tax base is important.”
  — Clare Walsh (16:10)

• Capacity Building: Recognition that many developing countries need support in building their tax administration capabilities.

c. Financial Inclusion (17:28 – 20:07)

• The Challenge: Most of Africa’s workforce operates in the informal sector with little access to banking, credit, or insurance—especially for women.

• G20’s Role: Evidence gathering, identifying where technology (e.g., digital identity) and innovative service provision can bridge the gap.

  “If you thought about being in America or in Australia and you wanted to grow your economy, but you didn't have access to credit, I mean, can any of us even imagine a world where that wasn't possible?”
  — Clare Walsh (18:39)

• Special Emphasis: Access for remote & rural populations and gender equity.

d. Food Security (08:50, 12:54)

• G20 Impact: Example of French presidency using the DWG to coordinate and improve food security initiatives, shaped via international sharing of perspectives.
• Value Creation: Open debates help refine, adapt, and make food security strategies more globally relevant and successful.

e. Human Resource Development (12:54)

• Not deeply discussed in the episode, but highlighted as one of the key pillars for inclusive growth and development.

Notable Quotes & Memorable Moments

• On the G20 DWG’s Unique Dynamic:

  “You have experts around the table, you have an interesting mix of countries with an interesting mix of experience. But it's not just the G20 economies... You've also got the international organisations … and representatives of developing countries.”
  — Clare Walsh (04:12)

• On How Decisions Happen:

  “It's just important when you're trying to do a global effort... there is no one size fits all. The first thing that's put on the table will be one country's perspective... and then it gets moulded when you bring really important perspectives to bear on the issue.”
  — Clare Walsh (10:40)

• On Shifting from Aid to Domestic Capacity:

  “If a country is going to develop with some strength, then a domestic tax base is important. It's not the only thing... but being able to raise your own revenue is a really critical part of development.”
  — Clare Walsh (16:10)

• On Infrastructure’s Transformative Potential:

  “One infrastructure project that they have planned... he estimates, would increase their GDP by 1 percentage point. I mean, that's an amazing statistic.”
  — Clare Walsh (25:14)

Timestamps for Key Segments

• 00:08 – Introduction of guests and the G20 presidency context
• 01:07 – 03:43 – Origins, formation, and evolution of the G20 DWG
• 03:43 – 06:01 – Structure and atmosphere of G20 DWG meetings
• 06:01 – 11:09 – The real work: consultation, negotiation and reaching consensus
• 12:54 – 13:17 – Listing the five streamlined focus areas
• 13:26 – 17:28 – Domestic Resource Mobilization explained and its significance
• 17:28 – 20:07 – The financial inclusion agenda and challenges
• 20:07 – 25:32 – Infrastructure: barriers, priorities, and impact

Summary Table: The Five Focus Areas

| Priority Area | Key Challenges | G20 DWG Approach | |-------------------------------|---------------------------------------------------------|-----------------------------------| | Infrastructure | Lack of private investment, weak project preparation | Mapping facilities, convening stakeholders, supporting national cap. building | | Domestic Resource Mobilization| Tax base erosion, lack of admin. capacity | Focusing on BEPS, info exchange, capacity building | | Financial Inclusion | Informal sector dominance, lack of access for women | Evidence-based approaches, tech innovation, inclusion focus | | Food Security | Making global strategies relevant locally | Convening diverse viewpoints, shaping agenda collectively | | Human Resource Development | Broad skills and educational gaps | (Discussed as an area but not detailed in the episode) |

Conclusion

This episode offers a transparent look into the G20 Development Working Group’s evolution and focus areas under Australia’s presidency. With key insights into “how things really work” at the international table, an emphasis on practical impacts, and a recognition of the challenges faced by developing countries, listeners gain a nuanced understanding of global development policy in action.

For more episodes and resources, visit the Center for Global Development's website or subscribe to the CGD Podcast.