Daniel Schwanen Publications
Through its Mutual Assessment Process (MAP), the G20 is seeking to address macroeconomic imbalances that pose the risk of globally significant misallocation of capital, thereby threatening global growth prospects. But the “sustainability reports” produced by the International Monetary Fund on G20 economies flagged by indicators of imbalance agreed upon under the MAP, are replete with descriptions of structural factors in each economy that are at the root of macroeconomic imbalances.
The Cannes G20 Summit was almost blown off course by the sovereign debt crisis, which euro zone members tried, but failed, to stem in the days preceding the summit. In spite of the economic storm, the G20 managed, on a number of important files, to reaffirm and clarify directions taken and commitments made at earlier summits. Arguably, however, the summit also represents a step back from some other aspects of the G20 economic cooperation agenda, which, while more daring and difficult, could have fostered a more dynamic response to the unfolding crisis.
In most G20 countries, the social impact of the 2008 global financial collapse continues to be acutely felt. The monetary and fiscal stimulus provided by the G20 in the wake of the 2008 crisis worked to avert an immediate collapse in business and consumer confidence, but it has been inadequate, of itself, to return employment to pre-crisis levels.
These 21 CIGI commentaries analyze the policy issues and debates under discussion in 2010 that are still relevant to the ongoing G20 agenda under the French presidency and the G20’s aspirations for the future.
The G20 leaders will grapple in Seoul with how to deflect the risk of another downturn in the global economy. CIGI expert Daniel Schwanen suggests there is much that G20 leaders can do because national interests often coincide with the collective global interest.
At the Pittsburgh summit last September, the G20 adopted a “Framework for Strong, Sustainable and Balanced Growth." Daniel Schwanen, Special Advisor, Programs, to CIGI’s Acting Executive Director, recommends ways to strengthen the assessment process envisioned in the Framework.
When Good Intentions are Not Enough: Lessons of Past Cooperation Attempts for the G20 Stability Framework
At the Pittsburgh Summit, the G20 announced a new “Framework for Strong, Sustainable and Balanced Growth.” Within this Framework, leaders pledged to pursue responsible fiscal policies, prevent destabilizing credit and asset price cycles, promote more balanced external accounts, undertake structural reform to increase their potential growth rates and, where needed, improve social safety nets. But cooperation is easier said than done. The Pittsburgh summit may be remembered as the high water mark of G20 cooperation on global imbalances, unless officials draw lessons from past attempts at international economic reform.
CIGI Special G20 Report: Flashpoints for the Pittsburgh Summit is a compendium of brief policy papers by respected academics and practitioners who have studied the G20. The Special Report highlights the breadth of CIGI's research into economic governance, financial regulatory reform and regulation, international trade, and the capacity of the expanded G20 leadership to resolve and ideally prevent future crises.
A team of specialists explore the space that Canada currently occupies in the global policy landscape as well as the bureaucratic players that manage this “occupation,” looking at trade, the environment, development, defence, intellectual property rights, as well as that biggest file of all, the United States. They examine the various games involved, from the relationship of the Prime Minister’s Office with the foreign policy apparatus, to the constraints imposed by Alberta’s and Quebec’s peculiar interests and “takes” on foreign policy.