G20 appendix on framework for sustainable growth

ST ANDREWS, Scotland (Reuters) - Following is the text of an appendix to the communique issued by finance ministers and central bank governors at their meeting in St. Andrews, Scotland.

A FRAMEWORK FOR STRONG, SUSTAINABLE AND BALANCED GROWTH:

DEVELOPING THE 'MUTUAL ASSESSMENT PROCESS'

Shared policy objectives

1. In line with the Pittsburgh commitment, G20 Finance Ministers and Central Bank Governors at their meeting in St Andrews, reaffirmed their shared objectives of strong, sustainable and balanced growth and of raising living standards in the emerging markets and developing countries.

2. The first challenge for the G20 in using the new Framework will be the transition from crisis response to a strong, more sustainable and balanced pattern of global growth.

The G20 template for 'national and regional policy frameworks' for 2010

3. Each G20 country will set out their medium-term policy frameworks, plans and projections in the agreed template on a consistent basis with other G20 members. G20 members will indicate the key forward-looking elements of their policy frameworks and plans, outline the expected first order impact of policies on the domestic economy and, more generally, their national forecasts for key economic variables.

4. They will provide the Fund with policy frameworks and plans for the next 3-5 years, if possible. Countries can submit data based on existing products, including for example national budgetary plans and Article IV inputs. Countries should fill in as much information as they can, though it is recognized that it may not be possible for all countries to fill in every piece of information in the template. G20 members should complete the template, sharing with all other G20 countries at the same time, by the end of January 2010, if possible.

5. In addition to national submissions, the process should include submissions from the relevant European institutions in line with their areas of competence.

The role of the IMF, World Bank and other international organizations

6. In line with the Pittsburgh agreement, the IMF will assist us by providing analysis (and technical support where appropriate)of how our respective national or regional frameworks fit together and the World Bank will advise us on progress in promoting development and poverty reduction as part of the rebalancing of global growth, taking into account the relevant institutional policy setups.

7. In carrying out its analysis for the mutual assessment, the Fund should also receive input from and draw on the expertise of other international organizations, as appropriate, for both assessing G20 policies and in analyzing the impact of policy options, including: the FSB on financial policies; the ILO on labor market policies; the WTO on trade policies; and the OECD and UNCTAD, where appropriate.

The process and timetable for 2010

By end-January, if possible: G20 countries set out their national policy frameworks and plans - sending their completed templates to the IMF and sharing with other G20 members.

By mid-February: G20 countries interact with the IMF to assure quality, elaborate and clarify any information supplied in the template, where necessary, during the following 2-week period; and, to identify inconsistencies and incoherence in national assumptions, particularly between forecasts and frameworks/plans.