A group of twenty finance ministers and central bank governors, nicknamed the G-20, will be meeting in London this weekend to discuss the future of the global economy. Australian treasurer Wayne Swan provides an overview of some of the proposed directions the G-20 wants to take the global economy in.
Steps for Ensuring Global Economic Recovery:
- G-20 member countries must continue to implement and maintain the fiscal and monetary stimulus measures used to stave off depression, improve job growth, and subsequently, economic growth.
- Banks must be recapitalized in order to supply the credit necessary for global recovery.
- Financial supervision and regulations must be strengthened.
Steps for Establishing a New Growth Model:
- A future plan must be devised which will provide the means for eventually removing the measures introduced to counter the global economic recession.
- Conditions must be established which will aim to promote global economic growth into the future. Some of these conditions will include improving the distribution of global demand of imports and exports, as well as avoiding excessive deficits and surpluses.
- Restructuring international financial institutions in a way which increases the legitimacy and effectiveness of these institutions, which will ultimately allow them to provide the greatest contribution to global economic growth.
- Benefits of the economic recovery need to reach the world’s poorest countries, as many of these countries were also hit hard by the global economic crisis. Development in these areas will create new markets and industries and foster global growth.
- Providing a united and concerted effort towards addressing the issue of climate change via the United Nations Framework Convention on Climate Change. Increasing funds to foster adaptation towards greener infrastructures, and mitigating climate damage will be necessary for global sustainability.