London Summit 2009: A call for global reform?
On 2nd April, 2009, London was home to the leaders of the most powerful nations of the world who met amidst heavy protests and tight security. The famous G20 summit kick started at 7:30 in the morning with the arrival of the leaders, followed by a breakfast meet at 8:30. The atmosphere inside the excel centre was intense and apprehensive as the leaders gathered for their group photograph. And just when they thought they were set to make a decision that the world awaited, a re-shoot of the group photograph was called. Apparently, the Canadian Prime Minister, Mr. Stephen Harper was missing in the earlier one. Well, this meet was definitely a history in making.
The meeting started with global financial crisis and institutionalisation being the focus of the discussion. The leaders affirmed the need for a global reform to deal with the massive economic crisis that is affecting the world today. Within a couple of minutes of the start of the meeting, British PM Gordon Brown told the media that an agreement had been reached on the issue of protectionism. From then, one by one the media was informed of every decision that was taken inside the closed door meeting.
One of the biggest highlights of the summit was the increase in funds for IMF to help poor countries fight the financial crisis. The leaders pledged a $1.1 trillion package alongside measures for a tighter regulation of the international financial system to help bring the world out of recession. They also collectively agreed to negotiate a speedy conclusion of the Doha trade round. It was decided to put an additional $250 billion into trade finance, one of the key demands from India, represented by Indian PM Dr. Manmohan Singh.
Dr. Singh said he believed the result of the G20 meet was “very constructive”. He affirmed that the $1.1 trillion package will help those in need.
“This is a very substantial amount and will help to alleviate the worst effects of the global crisis on the developing and poorest countries,” Singh said.
Asian countries voiced their opinions freely on how to solve the global economic crisis. This marked a progress on a western dominated platform.
The demand for reforms to the International Monetary Fund (IMF) and other institutions was made particularly by China, India and Japan.
Japan contributed $100bn to the G20′s $1.1 trillion pledge in loans and guarantees to developing countries; while China contributed $40bn. India has still not disclosed the amount it would be contributing to IMF.
Indian PM Dr. Manmohan Singh was however, assured at the summit that that developing countries like India will have a higher voting right in institutions such as the International Monetary Fund and the World Bank.
The word “terrorism” got its mention during the press conference addressed by U.S President Barack Obama. Mr. Obama told the journalists that during his meeting with Indian Prime Minister, they discussed terrorism emanating not only from Pakistan but also Afghanistan.
It may make sense to create an effective dialogue between India and Pakistan in this nuclear age and at a time when perhaps the greatest enemy of the two countries should be poverty.
Besides India, Britain and the U.S., the G20 comprises Argentina, Australia, Brazil, Canada, China, France, Germany, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey and the EU.
G20 Draft Communiqué
After months and months of diplomatic negotiations, the leaders came together on a nine page communiqué that was issued with the conclusion of the summit. The communiqué focuses on six main aspects that the leaders have pledged to work on:-
• Take steps to restore economic growth and jobs
• To repair the financial system and restore lending
• To strengthen financial regulation and regain trust
• To fund and reform international financial institutions to overcome this crisis and prevent future ones
• To promote global trade and investment and reject protectionism to underpin prosperity
• To build an inclusive, green and sustainable recovery.
(Published in Asian Voices, London: Vol:37, Issue 49, Aprill 11th to April 17th, 2009, Link: http://epaper.asian-voice.com/AV/AV/2009/04/11/ArticleHtmls/11_04_2009_011_002.shtml?Mode=1)
