Right,
so they gathered, they talked, they laughed and now what?
As the G20 Summit in London draws to a close, I am left feeling a bit uneasy by the solutions our leaders are providing in these unsettling times.
First, there is the question of the new financial regulations to make sense of the current chaos.
All members are committed to implement them, but will they. Honestly, if [a] regulation is in direct conflict with a Country's financial & fiscal policy, then what? Were we not expecting a more co-ordinated response in a practical sense? Some points to consider:
- $500bn for the IMF to lend to struggling economies
- $250bn to boost world trade
- $250bn for a new IMF "overdraft facility" countries can draw on
- $100bn that international development banks can lend to poorest countries
- IMF will raise $6bn from selling gold reserves to increase lending for the poorest countries
At risk of sounding like a killer-joy, I have my own personal objections to giving even more power to the IMF & its lending policies...anyway, let's hope it all works out for the best. A commitment is a step forward, I suppose.
Second, the measures to reduce world poverty and push development forward do not go far enough. Do they ever?
There is a commitment of $250bn to support global trade which may sound like a hefty sum, but to be honest, it doesn't stand up for comparison against the bail-outs given to banks and financial institutions recently.
Leaders have pledged to resist protectionism and name Countries in breach of free trade rules. I'll be eagerly awaiting...
As for WTO to monitor and report on 'constrain of cash-flow', the jury is still out on that one!
I guess the good thing about the G20 is that more Countries have finally been allowed in the Inner Circle of the G8 and this can only mean a better, fairer view of global issues.
I am still convinced that the best policy to help poorer Countries is to resume the Doha trade talks, but hey, what do I know. I am just an environmentalist, after all.
Anna D'Alessandro
Director, greenpuma Ltd
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