Saturday, June 26, 2010

G20 Disagreements and Global Economic Reforms

There are a number of disagreements between G20 member nations. Although the passage of a US financial reform bill was an important step for the recovering world economy, diverging national assessments threaten a coordinated global strategy.

The UN would like to see the developed world assume a greater share of its responsibilities for the green economy. Americans and Europeans disagree on whether to maintain or withdraw stimulus. The US warns against choking off nascent growth, while European countries are imposing austerity measures to manage rising levels of debt.

Canada disagrees with key European nations on taxing banks. Canada has argued against taxing banks to guard against future financial crises, while Britain, France and Germany want to see a tax on the banking sector.

China's recent announcement of renewed flexibility in its currency, the yuan, will probably succeed in deflecting attention away from new protectionist measures.

There appears to be agreement that the global system is under-capitalized and a there is a broad consensus on the need to invest more capital. Although there is agreement on the broader issue, there is disagreement on implementation time frames. Europe wants to move slowly to give its banks time to adjust, while the U.S. would prefer to see a faster pace.

The G20 has a pivotal role to play, decisions made by economic leaders in Toronto will not only determine the future of the economy, they will decide the future of our environment. While there seems to be agreement on the need for sustainable growth, charting a strategy to get there is proving difficult.

We need international economic reforms that will help maintain stability. We also need a strategy that positions green as the engine that will drive the global economy.

Related Posts
G20 Must Cooperate for a Sustainable Recovery
Competing National Priorities
Major G20 Disagreements
Program and Plans for G8 and G20 Summits in Canada
The G20 and the Green Economy
UN Chief Asks G20 to Focus on a Sustainable Recovery
G20 Security Concerns Force Cancellation of Sustainable Supply Chain Event
G20 and Central Bank Governors Joint Communique
End Fossil Fuel Subsidies
G20 Protestors Dilute Green Message
The Tyranny of Protest and Climate Change Pragmatism
Local Business Promotes Green Agenda for G20 in Pittsburgh
G20 and Developing World Disagree on Climate Change
G20 Lays the Foundation for a Better World
Global Warming Exposes Resources but Arctic Meeting Leaves Some Out in the Cold
G8's More Aggressive GHG Targets
IMF Reforms

No comments: