Walden Bello on G-20: “it really doesn’t know”

Tord Björk | Uncategorized | Thursday, April 2nd, 2009

One of the sharpest analysis of the global crisis and the G-20 Summit in London coms from Walden Bello at Focus on the Global South:

“The Group of 20 (G20) is making a big show of getting together to come to grips with the global economic crisis. But here’s the problem with the upcoming summit in London on April 2: It’s all show. What the show masks is a very deep worry and fear among the global elite that it really doesn’t know the direction in which the world economy is heading and the measures needed to stabilize it.

The latest statistics are exceeding even the gloomiest projections made earlier. …

The current capitalist crew manning the global economy doesn’t know whether Keynesian methods can re-inflate the global economy. Meanwhile, an increasing number of people are asking whether using a clutch of Social Democratic-like reforms is enough to repair the global economy, or whether the crisis will lead to a new international economic order.
A New Bretton Woods?

The G20 meeting has been trumpeted as a new “Bretton Woods.” In July 1944, in Bretton Woods, New Hampshire, representatives of the state-managed capitalist economies designed the postwar multilateral order with themselves at the center.

In fact, the two meetings couldn’t be further apart.

The London meeting will last one day; the Bretton Woods conference was a tough 21-day working session.

The London meeting is exclusive, with 20 governments arrogating to themselves the power to decide for 172 other countries. The Bretton Woods meeting tried hard to be inclusive to avoid precisely the illegitimacy that dogs the G20’s London tryst. Even in the midst of global war, it brought together 44 countries, including the still-dependent Commonwealth of the Philippines and the tiny, now-vanished Siberian state of Tannu Tuva.

The Bretton Woods Conference created new multilateral institutions and rules to manage the postwar world. The G20 is recycling failed institutions: the G20 itself, the Financial Stability Forum (FSF), the Bank of International Settlements and “Basel II,” and the now 65-year-old International Monetary Fund (IMF). Some of these institutions were established by the elite Group of 7 after the 1997 Asian financial crisis to come up with a new financial architecture that would prevent a repetition of the debacle brought about by IMF policies of capital account liberalization. But instead of coming up with safeguards, all these institutions bought the global financial elite’s strategy of “self-regulation.””

read more at: http://focusweb.org/u-20-will-the-global-economy-resurface.html?Itemid=1

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