By Simon Johnson
The April 2009 London summit of the G20 is widely regarded as having been a great success. The world’s largest economies agreed on an immediate coordinated approach to the global financial crisis then raging and promised to work together on banking reforms that would support growth. At the time, President Obama got high marks for his constructive engagement.
Apparently all it takes to kick the world out of a secular recession and back into growth mode, is for several dozen finance ministers and central bankers to sit down and sign on the dotted line, agreeing it has to be done. That is the take home message from the just concluded latest G-20 meeting in Syndey, where said leaders agreed that it is time to finally grow the world economy by 2% over the next 5 years.
Recent concerns about the resilience of the global economy — Europe’s wobbling recovery, in particular — is expected to top of the agenda when finance ministers and central bankers from the Group of 20 industrialized nations meet this weekend in Cairns, Australia.
Coming on the heels of a new report by the Organization for Economic Development and Co-operation downgrading its economic growth forecasts, the G20 will likely discuss how European officials can help boost measures to improve growth in the region, a senior Finance Canada official told reporters on Monday.
The G20 Finance Ministers’ Meeting in Sydney in February 2014 provided a convivial winter break for the global economic elite. Travellers from the Northern Hemisphere could enjoy the Southern summer. Everybody could escape domestic political traumas, spending a few days amongst peers in luxury paid for by taxpayers.
They could bask in the slavish adulation of the local popular press who were in awe of the gathered central banking ‘rock stars’ and the charms of the International Monetary Fund (IMF) President Christine Lagarde.
MOSCOW (Reuters) - The Group of 20 nations declared on Saturday there would be no currency war and deferred plans to set new debt-cutting targets, underlining broad concern about the fragile state of the world economy.
OTTAWA (Reuters) - Canada will press for timely implementation of the Basel III rules on bank capital at a November 4-5 meeting of finance ministers from the Group of 20 nations, a senior finance ministry official said on Thursday. The official said it was imperative the rules on tighter global capital and liquidity be adopted according to the timeline that has already been agreed. The Basel III rules are supposed to start coming into force worldwide at the start of 2013, but late agreement on many details means many banks are unprepared. ...