Great Power divisions persist following G20 summit

A summit of G20 finance ministers and central bankers failed to reach any concrete agreement for measures to deal with the growing international finance crisis.

The meeting held in Horsham, southern England last Friday and Saturday brought together the finance ministers and central bankers of the world's leading economies responsible for 85 percent of world economic output. The aim of the meeting was to prepare an agenda for the G20 summit of country leaders planned for April 2 in London.

The communiqué issued by the finance ministers and central bank governors was upbeat, stating, "We have taken decisive, coordinated and comprehensive action to boost demand and jobs, and are prepared to take whatever action is necessary until growth is restored. We commit to fight all forms of protectionism and maintain open trade and investment." A closer perusal of the communiqué reveals that the assembled finance heads and bankers had been unable to agree on any of the main issues.

The failure of the leading capitalist nations to arrive at any binding agreement demonstrates that divisions between the major powers—particularly the US, Europe and China—are hardening fast. It is already clear from the proceedings at the weekend that nothing remains of the "Global New Deal" proposed by Brown to Obama in Washington earlier this month.

The implications of these divisions are far-reaching. In a comment on the growing drift between America and Germany, this week's Der Spiegel declares, "The German-American brawl evokes bad memories for economists. America and the European states were also incapable of agreeing on a joint strategy in the world economic crisis in the 1930's. The result was a worldwide trade war which only accelerated the economic collapse into the Depression. That cannot be allowed to happen again—that was what the industrial nations assured at their first summit last November in Washington. Now, however, the rifts are growing between the US and continental Europe."

Der Spiegel neglects to point out in its drawing of parallels with the 1930's that the resolution of the economic conflict between Germany and its rivals, including the United States, culminated in the Second World War.

Source: World Socialist Web Site

Democratisation and Human Rights

President Dmitry Medvedev believes that the results of the first conference of the Council of Europe (CE) in Moscow on social stability will help prepare efficient decisions of the G-20 summit in London.

Russian Deputy Prime Minister Alexander Zhukov read out on Thursday Medvedev’s greetings to participants and guests of the conference at its opening. The president’s message says as follows: “I greet participants and guests of the first Conference of Ministers of the Council of Europe members states, responsible for social cohesion.

Russia traditionally pays great attention to education, public health, pension maintenance and other social programmes.

Source: ITAR-TASS World Service

The G7 and China in the Management of the International Financial System

For several years, scholars, practitioners and analysts in "think tanks" have conducted an ever more vigorous debate about China's proper relationship with the G7 and now G8 club of major industrial democracies, as this forum increasingly emerges as an effective centre of global governance for the international financial system of the 21st century.

During its quarter century in operation thus far, the G7/8 system has substantially transformed its relationship with China, moving during the 1990's from its initial Tienanmen engendered focus on China as an adversary and object of collective G7 admonition to the current emphasis on China as a supportive player and potential associate of the G7/8 in managing the many economic and political challenges a rapidly globalizing, post European Cold war system have brought.

This progression has hastened recently with the responsible and helpful role China played, in its own interest, in supporting the G7's efforts to combat the Asian-turned-global financial crisis of 1997-9 and to construct a new international financial architecture more appropriate to the conditions of the twenty first century.

This new role for China has led to its inclusion in recently created forums such as the G22 and G20, with the G7 at the core, to manage and modernize the international financial system. Its approach to these bodies and the issues at the centre of their agenda, together with the assets and vulnerabilities China brings, suggest that it is time to develop options for further associating China with the G8 itself.

Source: University of Toronto G8 Information Centre