Certainly the world did not end in 2008 with the collapse of Lehman and the crisis that followed. But, it didn’t mostly—perhaps only—because extraordinary international policy cooperation helped avert a far worse outcome.
… the G-20 has now to adapt to a new economic environment. It must prove that it is able to coordinate the economic policies of major economies on an ongoing basis.
French G-20 Presidency
G-20 Finance Ministers and Central Bank Governors gather in Paris for their first ministerial level meeting of France’s G-20 presidency at a critical juncture–critical for the global economy, with tensions and risks emerging that require strong policy responses, and critical for ensuring actions on international policy cooperation and reform.
So, with all eyes turning to Paris, here is some recommended reading for G-20 watchers.
- Why Dominique Strauss-Kahn wants the “right kind of recovery.” He tells reporters at the G-20 in Paris that although global growth has resumed, it is uneven, both across and within countries. While some advanced economies face high unemployment, some emerging markets face the challenge of overheating.
- Meanwhile, G-20 ministers and central bank governors compromise to agree on indicators to measure global imbalances. Read the communiqué.
- John Lipsky tells us why 2011 will be a pivotal year for the global economic recovery and for international policy cooperation, and how the current state of the recovery makes the process of cooperation more complex.
- While the world economic recovery is continuing, Olivier Blanchard outlines how it is still an uneven or ‘two-speed’ recovery that is creating tensions and risks, including re-emerging global imbalances and rising food prices (list here for a podcast on rising food prices), as well as still high unemployment and widening inequalities. Left unresolved, these problems could sow the seeds of the next crisis.
- Two big items on the G-20’s agenda for this year—their ‘Mutual Assessment Process’ and reform of the international monetary system—focus specifically on those challenges to support an ongoing recovery and avoid future crises, ensuring a better outcome for all.