G20 Summit Creates High Expectations and Demands

by Lionel Creech

As the world looks to our governments to help aid in the current global economic crisis, the G20 leaders will get down to business and hopefully reach some sort of agreement at the summit currently taking place. Thousands of protesters have been showing their displeasure with leaders outside London’s Central Bank showing how distressed the population is towards the current situation. Differences in certain countries have made it hard to reach an agreement. The main dispute is the amount of extra funding for the International Monetary Fund to help it rescue the countries hardest hit by the crisis and it is likely to create tensions among countries. Hedge funds, private equity firms, and derivatives trading are likely to be more regulated and there is also a call for more well to do countries to provide stimulus money for other countries. The G20 groups the world's most powerful economies, accounting for 90% of the world's economic output, 80% of world trade, and two thirds of the world's population. As global demand contracts, trade is slumping and protectionism rising. A simple promise won’t suffice so hopefully governments, beginning with G20 summit, will draw up a comprehensive plan of protectionist measures that goes beyond tariffs and export subsidies. Thursday morning the G20 summit begins and anticipation is at its highest.

Sources:

http://www.economist.com/displaystory.cfm?story_id=13362027

http://www.cnn.com/2009/POLITICS/04/01/us.obama.g20/index.html?iref=newssearch

http://news.bbc.co.uk/2/hi/business/7977939.stm