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.