LONDON, March 29 (Xinhua) -- There is arguably no immediate remedy for fixing the sagging world economy. Yet the forthcoming London G20 summit has drawn worldwide attention, as it aims to make a mark in putting the global economy on the road to recovery.
A banner is displayed during a demonstration in London on March 28, 2009. The Put People First group, an alliance of more than 150 unions, on Saturday organized the demonstration, calling on the leaders of the Group of 20 Countries (G20) to adopt sustainable policies that can lead the world out of recession.(Xinhua/Zhang Liqing) Photo Gallery>>>
So will the London event live up to expectations?
Since late last year, the U.S. financial crisis has
spilled over into all economic sectors, and is taking its toll on a global
scale. The world economy has suffered an unprecedented setback, and is expected
by the International Monetary Fund (IMF) to shrink for the first time in 60
years in 2009 by up to 2 percent.
The collapse of businesses, the loss of jobs and
falling confidence all paint a bleak picture of what is believed to be the worst
recession since the 1930s Great Depression.
Up to 2 trillion U.S. dollars involved in the global
fiscal stimulus measures have yet to yield any encouraging results.
The consequent growing government deficits have
become a topic of concern among the British and U.S. public. Many people are
worried that their governments have created massive debts for future generations
of taxpayers.
The G20 countries have been urged by the IMF to
invest the equivalent of 2 percent of their GDP into stimulus efforts during
2009 and 2010. But the proposals have failed to draw unanimous support from many
of the G20 members.
WHY LONDON SUMMIT MATTERS
The London summit is the second major gathering of
G20 states, bringing together leaders of the countries for discussion on the
economic crisis. Last November's Washington summit laid the groundwork for the
London meeting.
The G20 countries, which represent 85 percent of the
world's GDP, will make decisions, which will matter to each country as to how
they will engage in a globally coordinated action to end the meltdown.
The knock-on effects of the economic crisis have
highlighted the increased interconnectivity of countries in a globalized world.
This also underlines the need to overhaul the international financial systems
with the developing world having a bigger say in international financial
institutions.
However, this would not be easily achieved, as
developed countries, especially the U.S., are unwilling to give up their
dominance of global financial institutions and markets.
China's recent proposal for creating a global
currency to replace the dollar has been dismissed as "unnecessary," with many
leaders, including Barack Obama, Gordon Brown and Kevin Rudd, arguing that the
U.S. dollar remains strong. However, the IMF has forecast that the U.S. will see
a 2.6 percent drop in GDP in 2009.
For the developed countries, the G20 offers an
opportunity to show their courage, willingness and capacity to take on the
challenge of fixing the world economy, with an emphasis on wider global issues
and taking into account aspects affecting poorer countries.
The European Union (EU) nations have already agreed
to develop principles for regulating the banking sector and to make 100 billion
U.S. dollars in loans available to the IMF to support the developing world.
CYNICISM TOWARD G20
To rally support for his rescue initiatives, British
Prime Minister Gordon Brown has been traveling throughout Europe and to the
American continent, meeting with bankers and finance ministers, in efforts to
make the April meeting a success.
His efforts have been greeted with little enthusiasm
at home and many have expressed the view that the G20 is just a waste of time.
"I don't really care about the meeting because it is
meaningless. There is more rhetoric than action," a driving instructor, Julia
Freeman, told Xinhua.
"Unfortunately, we have a weak government, which is
only interested in getting whatever they can from the country instead of serving
the country," said a pensioner who identified herself only as Alice. "I do not
believe the G20 will bring any change to this country," she added.
Recent disputes between Brown and Bank of England
Governor Mervyn King over whether Britain should have a new fiscal stimulus plan
have also worried the British public. Some people have even raised the question
as to who is running Britain: the Prime Minister or the Governor?
In addition, Britain's involvement in Iraqi War has
been highlighted as one of the reasons behind the country's increased financial
burdens.
For environmentalists, the one-day summit, which will
cost in excess of 19 million pounds (28 million U.S. dollars), is a waste of
resources. They also assert that the summit is environmentally unfriendly and
will not achieve anything tangible.
"In this hi-tech world, they could talk by
teleconference through the Internet, so do they really need to gather to fix a
solution? They should consider their carbon footprints," says environmentalist
Amy Scott.
Rising unemployment and mounting financial
difficulties, along with unethical gains by bankers, have sparked a wave of
public anger, some of which has turned into violence.
An unprecedented week of demonstrations began during
the weekend before the G20. On Saturday, protesters marched through London
demanding action to tackle unemployment. Many also called for efforts to curb
climate change and fringe issues.
But the authorities are preparing for potentially
violent protests when anti-capitalist demonstrators descend on London's
financial center as the G20 begins.
The cost of policing for these protests is estimated
to exceed 7.2 million pounds (around 11 million U.S. dollars).
ACHIEVEMENTS EXPECTED
"The success of the summit is whether we can make the
recessions hallower and shorter than it would otherwise have been," Gordon
Brown's G20 Special Envoy, Lord Malloch-Brown, said during a web chat with the
public on Friday.
"The early test of the results will be whether we see
a stop to the drift towards protectionism and whether we see banks lending
again," he added.
Protectionism will end the benefits of the
globalization, that is mutually reinforcing the cycle of job creation and
falling product prices, he said.
However, the core achievement of this meeting must be
the recovery of confidence, not just for investors but for all consumers and
voters, said Lord Malloch-Brown, who is also British Minister for Africa, Asia
and the UN.
"The G20 leaders have to convince a global
constituency that they are in charge and that they know what they are doing. If
they don't, they will obviously add to a sense of drift and crisis," he warned.
"There is no national recovery strategy, ultimately
just a global one that our national actions need to support," he said, adding
that "If we start to think and act nationally, and forget the global, we're not
going to get out of this."
SUSTAINABLE CONSUMPTION IS THE
REMEDY
Though the G20 is not specifically intended to seek
climate change solutions, it is expected to give a push to attendees toward
making a commitment to a post-2012 global climate change framework, something
that is to be agreed in Copenhagen at the end of this year.
Bringing about recovery of the global economy, whilst
maintaining sustainability, remains high on the G20 agenda. The G20 countries,
especially the richer ones, have been urged to take a lead in sustainable
consumption, which is regarded as a key force for fighting climate change.
The real cause of climate change is not cities
themselves but high-consumption lifestyles, says a study released recently by
the International Institute for Environment and Development states.
Many cities have surprisingly low per capita
emissions, but what is clear is that most emissions come from the world's
wealthier nations, according to Dr David Dodman, the author of the study.
"High-income countries need to take the lead in
showing how a high quality of life for all individuals can be achieved without
placing an unsustainable load on environmental systems," Dodman said during an
interview with Xinhua.
"Now we are fighting the fire, but as the crisis
passes the debate will shift to environmental and social concerns and indeed a
whole discussion of how we can live in better balance with our neighbors and the
world, not only between borrowing and saving nations, but also in our
consumption and how we live and use non-renewable resources," Lord Malloch-Brown
said.
The EU has recently agreed a 5 billion euro (6.8
billion U.S. dollars) package in funding for renewable energy and broadband
projects to enable an economic recovery in Europe in both a green and hi-tech
approach.
MEDELLIN, Colombia, March 29 (Xinhua) -- The
upcoming G20 summit in London will set the course for the establishment of a new
international financial system, Ibero-American General Secretary Enrique
Iglesias said. Full story
Police officers keep order in front of a
procession of demonstrators in London on March 28, 2009. The Put People
First group, an alliance of more than 150 unions, on Saturday organized
the demonstration, calling on the leaders of the Group of 20 Countries
(G20) to adopt sustainable policies that can lead the world out of
recession. The demonstrators also urged the leaders to attach importance
to global environment protection and to stablize the world political
situation. The G20 leaders will meet in London on April 2. (Xinhua/Zeng
Yi) Photo
Gallery>>>
LONDON, Mar. 28 (Xinhua) -- Over 12,000 people
from across Britain and Europe marched through central London on Saturday ahead
of the G20 summit, demanding decent jobs and public services for all, an end to
global poverty and inequality, as well as a green economy. Full story
A German policeman detains a
demonstrator during a protest in Berlin, March 28, 2009. Thousands of
demonstrators gathered in Berlin and Frankfurt to protest against
globalisation and deepening global recession. (Xinhua/Reuters
Photo) Photo
Gallery>>>
BERLIN, March 28 (Xinhua) -- Thousands of Germans walked onto streets in Berlin
and Frankfurt on Saturday to protest against the policies taken by governments
in solving the global financial crisis ahead of G20. Full story
ROME, March 28
(Xinhua) -- Global leaders at the G20 summit in London should urge a radical
reform of international financial institutions so as to pave the way for a new
international economic order with a common set of rules and codes of conduct,
Italian experts said in interviews with Xinhua on Friday.
Pierpaolo Benigno, economics and finance professor at
Rome's LUISS University, said he expects "the G20 summit to launch a
recapitalization of the International Monetary Fund." Full story
A girl carrying a model of the earth
gestures during a demonstration in London on March 28, 2009. The Put
People First group, an alliance of more than 150 unions, on Saturday
organized the demonstration, calling on the leaders of the Group of 20
Countries (G20) to adopt sustainable policies that can lead the world out
of recession.(Xinhua/Zeng Yi) Photo
Gallery>>>
