The G-20: The Committee to Not Save the World – David Shorr – Business – The Atlantic

Good advice to not put too much faith in the G-20,even though it plays an important decision-making and public opinion role:

The G-20 is basically a club of key economic players–collectively they account for over 80 percent of world GDP–and a channel for their combined efforts to maintain global economic growth and financial stability. The recent history and current debates within the group will sound familiar to anyone who has been following the domestic politics of America’s own economic troubles.

At the height of the Great Recession, the leaders of G-20 nations not only injected government spending into their own economies and propped up troubled banks, they also set up global financial facilities with trillions of dollars to meet additional needs. After the sense of emergency faded, however, so did the sense of solidarity among the leaders. Just before the June 2010 Toronto summit, President Obama wrote to his counterparts that the recovery was too fragile for a hasty shift from stimulus spending to austerity. Despite this plea, the leaders of Germany, Britain, and Canada pushed through a highly ambitious set of deficit reduction commitments. Such deep splits over what ails the economy inevitably constrain G-20 leaders’ options for further action — just as in the US budget battle.

via The G-20: The Committee to Not Save the World – David Shorr – Business – The Atlantic.

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One thought on “The G-20: The Committee to Not Save the World – David Shorr – Business – The Atlantic

  1. bronsonc says:

    The G-20 are given way too much credibility at times… as are the P-5 arguably. All of the constituents of the UN look up to these countries to lead and to set a precedence in many instance and on many issues. Economically speaking, however, although global hegemons, they are fiscally irresponsible and are not great examples to the world. The G-77 look up to them immensly I am sure, and it is because of this that they must uphold the principles of a strong economic international system. The article likened the situation to that of the US, which is the greatest parrellel one could think of. They seem to both be taking a “real politik” approach to the issues they are facing. They are obviously important nations and have a lot of pull in world politics, but they need to step up their game or else the game will step on them…
    Somewhat of an older article, nonetheless, still applicable to the situation faced in the above article.
    http://www.economist.com/blogs/buttonwood/2009/04/g20_and_the_markets

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