In the high profile tracking of recommendations from governments and multilateral agencies, I overlooked some others. Here are four that I wasn’t able to bring to you as they were released but are nevertheless important. This quad of recommendations are important not because of what they contain, but because it heightens, very elegantly, the expectations people across continents, ideologies and interests have.
The first count of recommendations took me to 101. On second count they rose to 119. Adding this list, we stand at 157.
The G-20 London Summit 2009: Recommendations For Global Policy Coordination. This March 29 report by The Brookings Institution lays out nine recommendations.
1. Stimulate, Reform, Coordinate: A Macroeconomic Agenda for the G-20 by Eswar Prasad
2. Tame Protectionism and Revitalise Trade by Paul Blustein
3. Speed the Flow of Money to Poor Countries by Homi Kharas
4. Mobilise the G-20 to Respond to the Global Economic Crisis by Colin Bradford and Johannes Linn
5. Empower the Regional Development Banks by Mauricio Cárdenas
6. Aid Africa by Ernest Aryeetey and John Page
7. Good Governance: Learn from the Missing Countries by Daniel Kaufmann
8. Focus on What Asia Wants by Lex Rieffel
9. Understanding and Addressing Political Instability by Raj Desai
New ideas for the London Summit: Recommendations for the G20 Leaders. Released on March 28, you need to know the context where this report is coming from. Chatham House, an eight-decade old “source of independent analysis, informed debate and influential ideas on how to build a prosperous and secure world for all.” The other contributor, The Atlantic Council, “promotes constructive US leadership and engagement in international affairs.” Its recommendations going beyond general declarations at the London Summit and apart from the six broad actions, there are detailed recommendations in this report.
Blog post on Cutting the Edge
Wednesday, April 1, 2009
G20 should help reverse slowdown: Manmohan
Gautam Chikermane, Hindustan Times
On Board PM’s Special Aircraft, April 01, 2009
Two hours before he departs for London to participate in a global summit of G20 nations on April 2, Prime Minister Manmohan Singh has his priorities clear but words them in diplomatic and stretchable words: “It is important and necessary for the Summit to take credible decisions which will help to halt and reverse the current slowdown and to instill a sense of confidence in the global economy.”
What is less ambiguous is his agenda for the meeting with US President Barack Obama. “This will be our first meeting and will be an opportunity for us to review our bilateral relations, as well as hold discussions on important regional and global issues such as terrorism, the situation in Afghanistan, energy security and climate change,” Singh said.
Story in Hindustan Times
On Board PM’s Special Aircraft, April 01, 2009
Two hours before he departs for London to participate in a global summit of G20 nations on April 2, Prime Minister Manmohan Singh has his priorities clear but words them in diplomatic and stretchable words: “It is important and necessary for the Summit to take credible decisions which will help to halt and reverse the current slowdown and to instill a sense of confidence in the global economy.”
What is less ambiguous is his agenda for the meeting with US President Barack Obama. “This will be our first meeting and will be an opportunity for us to review our bilateral relations, as well as hold discussions on important regional and global issues such as terrorism, the situation in Afghanistan, energy security and climate change,” Singh said.
Story in Hindustan Times
Monday, March 30, 2009
2 days to G20: India still keeps its cards close to its chest
Not that other countries have a position paper ready to dish out, but most of them have their stances clear. Between November 15 when the Washington Declaration was signed and today with the London Summit just 48 hours away, the positions — and the divides — are fairly clear.
The US and the UK stand together on two issues: keeping stimulus high and avoiding over-regulation. It’s a relief that they’ve reversed their insistence on coercing other countries to follow their 2 per cent spending tip, which their very obedient and loyal mouthpiece, the International Monetary Fund, yelped with full gusto.
Continental Europe, led by Germany and France, while rejecting all calls to spend, seek stronger regulation, nationalisation and more control over financial entities.
China, worried about its dollar investments that add up to $1 trillion at last count, is seeking an alternative global currency — an interesting proposal, possibly useful too.
Other emerging countries like Argentina, South Africa and Russia, but not excluding Australia that technically doesn’t fall in the “emerging” club, are largely silent, with the sole exception of the crude (and comic?) comments of Brazilian President Luiz Inacio “Lula” da Silva, who said ““This crisis was fostered and boosted by irrational behaviour of some people that are white, blue-eyed.”
India has not yet opened its cards. “We were very involved in the preparatory process, that’s why you have this impression,” Foreign Secretary Shivshankar Menon told reporters at a press briefing.
Unofficially, India’s overarching stance is to fight protectionism. ““We are against protectionism,” Menon said. “We would like to see a very strong statement coming out of G20 against protectionism.”
Earlier, I had spoken to the heads of some of India’s leading industry opinion makers and protectionism was indeed the theme of greatest concern, particularly US President Barack Obama’s comments on outsourcing, buy American and so on.
Blog post on Cutting the Edge
The US and the UK stand together on two issues: keeping stimulus high and avoiding over-regulation. It’s a relief that they’ve reversed their insistence on coercing other countries to follow their 2 per cent spending tip, which their very obedient and loyal mouthpiece, the International Monetary Fund, yelped with full gusto.
Continental Europe, led by Germany and France, while rejecting all calls to spend, seek stronger regulation, nationalisation and more control over financial entities.
China, worried about its dollar investments that add up to $1 trillion at last count, is seeking an alternative global currency — an interesting proposal, possibly useful too.
Other emerging countries like Argentina, South Africa and Russia, but not excluding Australia that technically doesn’t fall in the “emerging” club, are largely silent, with the sole exception of the crude (and comic?) comments of Brazilian President Luiz Inacio “Lula” da Silva, who said ““This crisis was fostered and boosted by irrational behaviour of some people that are white, blue-eyed.”
India has not yet opened its cards. “We were very involved in the preparatory process, that’s why you have this impression,” Foreign Secretary Shivshankar Menon told reporters at a press briefing.
Unofficially, India’s overarching stance is to fight protectionism. ““We are against protectionism,” Menon said. “We would like to see a very strong statement coming out of G20 against protectionism.”
Earlier, I had spoken to the heads of some of India’s leading industry opinion makers and protectionism was indeed the theme of greatest concern, particularly US President Barack Obama’s comments on outsourcing, buy American and so on.
Blog post on Cutting the Edge
Sunday, March 29, 2009
3 days to G20: the US-UK-IMF “Spend!” proposal is destined to die
I hate to say ‘I told you so’, but I told you so — I really did.
Coming to a global congregation of the world’s largest economies and hoping 18 members to blindly follow what the US dictates and the UK furthers was nothing short of a foolish expectation. High on intent, reason and morals but low on humility, persuasion and mutual respect, the audacious spend-your-way-out-of-the-crisis proposal, born in the USA, grown in the UK and parroted by IMF, was destined to die.
True, the G20 economies add up to 85 per cent of the world’s GDP. But what perhaps escapes US President Barack Obama and his chorus comprising UK Prime Minister Gordon Brown and the IMF is a simple fact: smaller they may be when measured by output, but all, repeat all, other 18 countries still carry their economic uniqueness and sovereign dignity — the credit crisis has not been able to scratch that.
Here’s what some of the leaders said, according to the Sunday Times story:
“I will not let anyone tell me that we must spend more money,” said German Chancellor Angela Merkel.
“In these conditions I and the rest of my colleagues from the eurozone believe there is no room for new fiscal stimulus plans,” said Spanish Finance Minister Pedro Solbes.
French President Nicolas Sarkozy added his two bits about reforming capitalism being more important than cutting taxes.
Talks of such a package have begun in India, but I see neither much fiscal room nor administrative force (until the next government comes into power) for it to fructify.
Blog post on Cutting the Edge
Coming to a global congregation of the world’s largest economies and hoping 18 members to blindly follow what the US dictates and the UK furthers was nothing short of a foolish expectation. High on intent, reason and morals but low on humility, persuasion and mutual respect, the audacious spend-your-way-out-of-the-crisis proposal, born in the USA, grown in the UK and parroted by IMF, was destined to die.
True, the G20 economies add up to 85 per cent of the world’s GDP. But what perhaps escapes US President Barack Obama and his chorus comprising UK Prime Minister Gordon Brown and the IMF is a simple fact: smaller they may be when measured by output, but all, repeat all, other 18 countries still carry their economic uniqueness and sovereign dignity — the credit crisis has not been able to scratch that.
Here’s what some of the leaders said, according to the Sunday Times story:
“I will not let anyone tell me that we must spend more money,” said German Chancellor Angela Merkel.
“In these conditions I and the rest of my colleagues from the eurozone believe there is no room for new fiscal stimulus plans,” said Spanish Finance Minister Pedro Solbes.
French President Nicolas Sarkozy added his two bits about reforming capitalism being more important than cutting taxes.
Talks of such a package have begun in India, but I see neither much fiscal room nor administrative force (until the next government comes into power) for it to fructify.
Blog post on Cutting the Edge
12 days to G20: IMF’s spend-your-way-out-of-the-crisis recommendations are best ignored
In its predictable conclusion-first-analysis-later approach when it comes to ensuring that the interests of its key stakeholder, the US, are protected, the International Monetary Fund has cobbled together a recommendation that resonates, reiterates and reeks of the US line: spend, spend, spend.
I had pointed out yesterday how the US is pressuring the world in general, and G20 that meets in London on April 2 in particular, to mimic its policies, ostensibly to get an even response globally to a situation that’s global. This, I said, won’t work because each country is structurally different.
My warning as a result: “Some of the tensions in G20 — between emerging economies and the emerged, between US-UK and Continental Europe led by France, between US and China and among fringe groups — are because of differences like these between countries. And while domestic political pressure on leaders of all G20 countries is the same (get the economy back on track, now), expecting all economies to behave the same way under the broadsword of the same solutions through a magnified geopolitical pressure on the same leaders is going to prove counterproductive.”
We saw the first murmurs of this discontent, muffled as it was, today as EU leaders resisted calls for new spending.
Blog post on Cutting the Edge
I had pointed out yesterday how the US is pressuring the world in general, and G20 that meets in London on April 2 in particular, to mimic its policies, ostensibly to get an even response globally to a situation that’s global. This, I said, won’t work because each country is structurally different.
My warning as a result: “Some of the tensions in G20 — between emerging economies and the emerged, between US-UK and Continental Europe led by France, between US and China and among fringe groups — are because of differences like these between countries. And while domestic political pressure on leaders of all G20 countries is the same (get the economy back on track, now), expecting all economies to behave the same way under the broadsword of the same solutions through a magnified geopolitical pressure on the same leaders is going to prove counterproductive.”
We saw the first murmurs of this discontent, muffled as it was, today as EU leaders resisted calls for new spending.
Blog post on Cutting the Edge
Saturday, March 28, 2009
4 days to G20: children have some advice for leaders
Finally, the single most important reason why G20 must solve the ongoing credit crisis: children.
BBC has an excellent story on how the crisis is affecting children in three schools in Glasgow, Islamabad and Mbabane.
“In future we think there will be fewer scholarships,” say students of Waterford Kamhlaba United World College in Mbabane, Swaziland.
“We have given up hobbies such as dance classes and sports as we simply can’t afford them anymore,” say students of St Ninian’s High School in Glasgow, UK.
“We would show the G20 leaders beggars in search of food in garbage disposals, filthy canals and along pedestrian tracks,” say students of Islamabad Convent School in Islamabad, Pakistan.
Mallika, 16, a student of Springdales School in New Delhi says: “The people who have had to bear the brunt are those who do not have steady jobs or income. Many of those below the poverty line are not receiving even a minimum wage. These are the people I would introduce to the G20 leaders because they reflect the true effects of the economic crisis. People who can barely afford a meal for their families on a daily basis.”
Blog post on Cutting the Edge
BBC has an excellent story on how the crisis is affecting children in three schools in Glasgow, Islamabad and Mbabane.
“In future we think there will be fewer scholarships,” say students of Waterford Kamhlaba United World College in Mbabane, Swaziland.
“We have given up hobbies such as dance classes and sports as we simply can’t afford them anymore,” say students of St Ninian’s High School in Glasgow, UK.
“We would show the G20 leaders beggars in search of food in garbage disposals, filthy canals and along pedestrian tracks,” say students of Islamabad Convent School in Islamabad, Pakistan.
Mallika, 16, a student of Springdales School in New Delhi says: “The people who have had to bear the brunt are those who do not have steady jobs or income. Many of those below the poverty line are not receiving even a minimum wage. These are the people I would introduce to the G20 leaders because they reflect the true effects of the economic crisis. People who can barely afford a meal for their families on a daily basis.”
Blog post on Cutting the Edge
Friday, March 27, 2009
5 days to G20: the debate gets dirty
The undercurrents at G20 just got public and the London Summit just got racist. Standing next to UK Prime Minister Gordon Brown, the Brazilian President Luiz Inacio “Lula” da Silva brought the black-brown-white frustrations on the global finance table.
“This crisis was caused by no black man or woman or by no indigenous person or by no poor person,” Lula said after talks with the prime minister in Brasilia to discuss next week’s G20 summit in London, Guardian reported.
“This crisis was fostered and boosted by irrational behaviour of some people that are white, blue-eyed. Before the crisis they looked like they knew everything about economics, and they have demonstrated they know nothing about economics.”
Lula’s irritation with bankers is understandable and justified. What’s not acceptable is for the leader of the world’s 10th largest economy, someone who seeks to drive the global finance agenda through greater vote share in institutions like the IMF to turn the London Summit into something so small, so trite, so disgusting.
Lula said he did not know a single black banker. Well, I know several who are brown — and all of them are their by the sheer power of merit (you can condemn the direction of that merit, the use it’s been put to and so on). Using probability theory, I am confident that there will be several black. Some of them may even be part of the bonus-maximising herd that ignored risk and brought global finance and through it the real economies of many economies, including Lula’s Brazil, to its knees.
Whatever else Lula maybe, I would fear to put something as sensitive and as powerful as global finance into his hands. I’m glad he’s not driving the agenda and a black man is.
Blog post on Cutting the Edge
“This crisis was caused by no black man or woman or by no indigenous person or by no poor person,” Lula said after talks with the prime minister in Brasilia to discuss next week’s G20 summit in London, Guardian reported.
“This crisis was fostered and boosted by irrational behaviour of some people that are white, blue-eyed. Before the crisis they looked like they knew everything about economics, and they have demonstrated they know nothing about economics.”
Lula’s irritation with bankers is understandable and justified. What’s not acceptable is for the leader of the world’s 10th largest economy, someone who seeks to drive the global finance agenda through greater vote share in institutions like the IMF to turn the London Summit into something so small, so trite, so disgusting.
Lula said he did not know a single black banker. Well, I know several who are brown — and all of them are their by the sheer power of merit (you can condemn the direction of that merit, the use it’s been put to and so on). Using probability theory, I am confident that there will be several black. Some of them may even be part of the bonus-maximising herd that ignored risk and brought global finance and through it the real economies of many economies, including Lula’s Brazil, to its knees.
Whatever else Lula maybe, I would fear to put something as sensitive and as powerful as global finance into his hands. I’m glad he’s not driving the agenda and a black man is.
Blog post on Cutting the Edge
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