Toronto (Canada) – After two days of debate, heads of state from the world’s wealthiest countries and some emerging ones, which comprise the G20, finished the summit’s final communiqué last Sunday (27th). The effort had the intention of signaling to the international community that a series of measures must be adopted in order to prevent financial crises.
The advice is to seek economic recovery. There are, however, no specifications or detailed instructions. The tone was one of admonition.
An attempt has been made to contemplate all – wealthy and emerging nations. The most controversial item was the halving of the deficit by 2013, a measure with which Brazil did not agree because it deemed it too bold. The recommendation includes all countries, except for Japan.
Over the course of 27 pages, with three annexes, the G20 outlines a series of targets and guidelines that should be adopted by the countries. These measures, however, should only be adopted after the group’s meeting in Seoul, in South Korea, in November.
“The G-20’s highest priority is to safeguard and strengthen the recovery and lay the foundation for strong, sustainable and balanced growth, and strengthen our financial systems against risks.,” according to the document.
The balanced tone highlights the need for all to contribute with stimulus plans, strengthening and support for the global economic recovery. “Economic recoveries” are underscored several times.
Emerging nations, Brazil included, managed to include in the document an item about reforming international financial institutions – meaning the International Monetary Fund (IMF) and the World Bank. No deadlines or dates have been set, but the matter was deemed as “awaiting conclusion.”
“A number of G-20 members have already formally accepted the recently agreed reforms,” according to the final communiqué. “Other participating G-20 members will complete the acceptance process by the next meeting of G-20 Finance Ministers and Central Bank Governors. We call on all existing and new NAB participants to do the same,” the document adds.
The communique highlights the European community’s efforts for fighting the effects of the financial crisis, which mostly affected Greece, Spain and Portugal. China is indirectly mentioned for having appreciated the yuan (Chinese currency), as thus far the country was being criticized for maintaining a low rate of appreciation in order to benefit the country’s industry and harm those of others.
The United States have managed once again to postpone debate on ending protectionism. The North American president, Barack Obama, admitted to having problems when it comes to promoting domestic debate on trade liberalization. For that reason, there was only one mention of the willingness to resume discussions.
“We therefore reiterate our support for bringing the WTO Doha Development Round to a balanced and ambitious conclusion as soon as possible,” informs the communiqué. “We direct our representatives, using all negotiating avenues, to pursue this objective,” the document states.
*Translated by Gabriel Pomerancblum