Special Report: Global Financial Crisis
by Xinhua writer Fan Yu
BEIJING, March 30 (Xinhua) -- The G20 summit, scheduled for April 2, brings together major industrialized and developing nations. It provides a platform for their leaders to strengthen coordination and cooperation in the global efforts to tackle deteriorating and complicated economic woes.
Whether the G20 countries, which represent about 85 percent of the world's output, could advance global partnership is vital to restore world confidence amid crisis.
"The world can work together," said British Prime Minister Gordon Brown who is going to chair the summit. As indicated by history and the current crisis, sincere cooperation among countries is the most effective way to overcome crisis. Only by working together, can we tide over the crisis and forge ahead.
Experience from the Great Depression in the 1930's also showed that protectionism could save no country. The 1997 Asian financial crisis has taught the world another lesson that developing countries' participation is indispensable in tackling a major crisis. Hence, the G20 came into being as a dialogue mechanism among developed and developing nations.
The current severe tests make global cooperation even more urgent when major developed economies bogged down in deep slump, and the emerging and developing economies were badly hit. The world economy and global trade have suffered significant downturn with uncertain prospects.
We are now in an era of globalization when all countries are closely interdependent. Fiscal stimulus and government bailout plans at the national level are not effective enough to tackle a global financial crisis of such exceptional scope and destructive force. Any country which adopts the beggar-thy-neighbor policy mayas well suffer the consequence of its own making.
Economic stimulus measures are most effective if implemented internationally. As Nobel Prize-winning economist Joseph Stigliz said while addressing the 10th China Development Forum, a global crisis needs united measures.
How far global efforts can go to a big extent determines how soon the world economy starts to recover. As the financial crisis worsens, more and more countries have chosen to strengthen cooperation while brushing aside differences.
To date, policy measures unveiled by different countries, ranging from stimulus packages to rate cuts, and the emergency loan programs initiated by international institutions for the countries in predicament all indicate a rising awareness of cooperation. Participants at many international and regional meetings, including the Washington summit, the 16th session of APEC meeting, the G20 financial ministers meeting and the European summit, have repeatedly called for "coordinated measures and concerted efforts."
Besides cooperation, topics like spending programs, regulation and supervision of important financial institutions, the reform of international financial system, and anti-protectionism are also expected to be on the London summit agenda. No country can single-handedly tackle these issues without effective cooperation with others, either it is the short-term priority to contain the crisis or the longer-term financial reform.
As a group with wide representation, the G20 members vary greatly as far as their specific interest is concerned. Though coordination is by no means easy, members should try to enhance cooperation in the face of global economic downturn. Due consideration should be given to different interests by making necessary compromise. Additional aid should be given to the least developed countries trapped in crisis. Only by helping the most needy members, can one expect the international community to enhance its overall ability to tackle crisis.
Global crisis needs global solutions. International cooperation secures the interests of all and calls for the actions of all. Making united efforts to honor shared commitment by taking coordinated measures will finally bear fruit. Whether the G20 summit can bring the dim world a gleam of hope as its badge foretells, let's wait and see.
