G20

GROUP OF TWENTY (G20)

Founded in 1999, the Group of Twenty (G20) consists of an international forum for economic cooperation that brings together the world’s 20 leading industrialized and emerging economies, being 19 individual countries and the European Union. Also, the group represents 85 per cent of the world’s Gross Domestic Product (GDP) and two-thirds of its population1.

Initially, the G20 meetings involved only Finance Ministers and Central Bank Governors, who discussed financial and monetary policies or questions over the world economic development. Nevertheless, following the global financial crisis, in 2008, the United States of America (USA) proposed to upgrade it to a leader summit.

Therefore, the first G20 Leaders’ Summit was held in November 2008, in the USA, focusing on strengthening financial regulation. Since the inaugural meeting in 2008, Summits between the members leaders of the group have become an annual event, alongside with the Finance Ministers and Central Bank Governors encounters, that continue to happen every year, to enforce the decisions taken at the Summit.

THE BOUNDARIES BETWEEN TECHNOLOGICAL DEVELOPMENT AND UNEMPLOYMENT: A 21ST CENTURY ISSUE.

In economics, productivity — the amount of economic value created for a given unit of input, such as an hour of labor — is a crucial indicator of growth and wealth creation. It is a measure of progress. For years after World War II, the lines of productivity and employment closely tracked each other, with increases in jobs corresponding to increases in productivity. The pattern is clear: as businesses generated more value from their workers, the country as a whole became richer, which fueled more economic activity and created even more jobs. Then, beginning in 2000, the lines diverge; productivity continues to rise robustly, but employment suddenly wilts.

In addition, by 2011, a significant gap appears between the two lines, showing economic growth with no parallel increase in job creation. It is a startling assertion once it threatens the faith that many economists place in technological progress. It is the great paradox of our era. Productivity is at record levels, innovation has never been faster, and yet at the same time, we have a falling median income and also fewer jobs.

People are falling behind as technology is advancing so fast and our skills and organizations are not keeping up. Technologies like the Web, artificial intelligence, big data, and improved analytics — made possible by the ever-increasing availability of cheap computing power and storage capacity — are automating many routine tasks. Countless traditional white-collar jobs, such as many in the post office and in customer service, have disappeared.

As a result, turns out to be vital discussing the role of technology and human employment and its impacts on public policies and overall economy. The G20 convenes a major number of developed and developing countries whose influence in the global dynamics is definitely notable, thus, it fits perfectly to such important discussion with global effects.

The directors of the Group of Twenty await for those brave enough to discuss such a current (yet futuristic) issue. Come simulate with us! Shall we find a solution to balance human and technological development?

ACADEMIC DIRECTORS

Gabriel Emídio Guerra Cabral

Pedro Victor de Oliveira Mota

ASSISTANT DIRECTORS

Ellen Monielle do Vale Silva

João Luís Macedo Silva Cardoso

Layse Rhayana Marcelino Dias

Victoria Louise e Silva Arboes Petronilo

GUIDING TUTOR

Ana Carolina Bezerra Fernandes Revorêdo

REFERENCES

BRIAN ARTHUR, William. The second economy. Available on: http://tuvalu.santafe.edu/~wbarthur/Papers/SecondEconomy.pdf 4 Last access: Jan 10th 2017.

MUSTAFA, Jamil. What is the G20 and how does it work? Available on: http://www.telegraph.co.uk/business/0/what-is-the-g20-and-how-does-it-work/. Last access: Nov 4th 2017.

ROTMAN, David. How technology is destroying jobs. Available on: https://www.technologyreview.com/s/515926/how-technology-is-destroying-jobs/. Last access: Jan 10th 2017.

1 MUSTAFA, Jamil. What is the G20 and how does it work? Available on: http://www.telegraph.co.uk/business/0/what-is-the-g20-and-how-does-it-work/. Last access: Nov 4th 2017.