The B20 is calling on G20 leaders to commit to a bold reform agenda and ambitious individual country growth strategies when they meet in Brisbane at the annual G20 Leaders Summit this weekend.

Mr Richard Goyder AO, B20 Chair, said the B20 would be asking the G20 to make commitments in five key policy areas – finance, human capital, infrastructure, trade and transparency to drive growth and employment outcomes.

“Since the onset of the financial crisis, governments have tackled low growth with fiscal and monetary policy,” Mr Goyder said. “But this level of spending is clearly not sustainable and is not inspiring the commercial and consumer confidence needed to kick-start the global economy.

“The B20 welcomed the finance ministers’ decision earlier this year to set a growth target of two per cent above expectations over the next five years. But sustainable growth will require business investment driven by more than just confidence.

“The enabling environment for business must be improved to stimulate investment, enhance productivity and increase economic activity and growth.”

The OECD’s latest Economic Outlook found the global economy is still stuck in low gear but it is expected to accelerate gradually if countries implement growth supportive policies.

“The report found that reforms to tax, trade, labour and product markets will benefit domestic investment and global trade, and support greater employment and consumption around the world.

“The B20 has made 20 mutually reinforcing recommendations to the G20, which if implemented, would easily exceed the G20 additional two per cent growth target and create millions of new jobs.

“We have laid a blueprint for business to work with governments to combat corruption and improve transparency, major barriers to growth, which will promote greater integrity in commerce.”

Mr Robert Milliner, B20 Sherpa, said he expected progress to be made when the B20 meets with G20 leaders, particularly on the infrastructure agenda, but that more work needed to be done on labour market reform and to stimulate trade.

“We are encouraged by proposals to establish a Global Infrastructure Hub. Our research shows that establishing a Hub would support an additional $2 trillion in infrastructure capacity, add $600 billion to global GDP and support 10 million additional jobs by 2030,” Mr Milliner said.

“Productive infrastructure investment is the key to sustainable increases in economic growth because it creates permanent direct employment and enhances productivity for the commercial enterprises that use it,” he said.

Trade has slowed since the financial crisis in line with the slowdown in GDP growth, even though import tariffs have remained low.

“Business believes that the focus must now be on tackling non-tariff barriers and making supply chains more efficient if we are to reignite international trade.

“The setback to the Bali Trade Facilitation Agreement was disappointing but we need not be defeated by it. The customs reforms at its centre can be implemented by every country individually and every country will benefit by doing so,” Mr Milliner said.

Mr Goyder said general business investment is hampered by unnecessarily rigid labour market policies and inadequate recognition of the effects of global financial regulation on the availability of finance for Small and Medium Enterprises.

“Labour market policy settings contribute directly to the ability of entrepreneurs to start and grow businesses and to the creation of additional sustainable jobs. Flexibility enhances value by enabling employers to find labour with the right skills.

“On global financial regulation our message has been to pause, take stock and align the regulation introduced since the crisis to ensure it is fit for purpose and that any unintended consequences are identified and dealt with.

“Substantial commitments were made by G20 Finance Ministers and Central Bank Governors in September towards meeting this goal and we want to ensure this momentum continues into next year.”

Mr Goyder said current growth rates will not substantially lower unemployment levels or improve living standards.

“We need a real and measurable improvement in the rate of growth before we will see noticeable improvements in the quality of people’s lives,” he said.

“The B20 believes the G20 remains the most economically significant global institution. It is small enough to be nimble and yet broadly representative, with the power to quickly change the direction of the global economy. We hope to see that translate into commitments for growth in the communiqué on Sunday.”