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November 15, 2008
Will there be an agreement at the G20 for internationally co-ordinated tax cuts, public infrastructure projects and other measures to stave off a severe global recession? Will the Bush administration successfully resist the push by European governments for tighter regulation of world finance? No doubt there will be an agreement to meet again to discuss the crisis of governance.
Peter Brookes
If recent decades have been dominated by western industrialised nations grouped together under the banner of the Group of Seven, then the summit, this weekend, billed as G20, marks a significant shift. That shift should see China, India and Brazil now have a place at the table and a much greater say in global economic governance.
Presumably, if the G20 is moving towards a new era of international co-operation aimed at preventing a repeat of the financial crisis that has engulfed the global economy, then the first step would need to be bring together fragmented national regulation of some of the world's biggest banks, whose business practices contributed to the financial meltdown. As there is sharp disagreements about the scale and the role of any new international regulatory organisation, there may be enough common ground to begin to remake the financial architecture and establish "early warning systems" that could head off future crises. Presumably the IMF would form part of the "early warning system".
The Bush administration continues to resist moves to strengthen international regulation of the financial system, preferring instead to talk of bolstering national regulatory structures.
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interesting image. Looks familiar.