Diana Tussie heads the Department of International Relations at the Facultad Latinoamericana de Ciencias Sociales (FLACSO), and is a member of CIGI's International Board of Governors.

Economic Interests

Argentina's key objectives for the G20 Summit were the injection of liquidity, the reform of the IMF - as well as other international financial institutions - and a stricter regulation of the credit rating agencies that failed to detect problems in the system. Similar conclusions were reached at the meeting of the NGO Fundacion Ideas where senior figures discussed criticism of the IMF and World Bank's roles in the current crisis. During the summit, Argentina joined several developing countries that demanded a bigger say in world trade rules and a certain relaxation of international credit policies. As a result, a tripling of IMF lending funds was more than had been expected; however, less was said about the rebalancing of influence sought by developing countries.

The daily Clarin emphasized the adoption of new financial instruments with less conditionality for developing countries as well as the implementation of Special Drawing Rights (SDRs). In this context, the IMF should be more flexible eliminating or reducing conditionality to a minimum, using financial instruments adequate for the times. This would allow Argentina to access US $3billion without Article IV conditions. Clarin also mentioned the importance of a massive increase in the funding of international financial institutions leading to a combined lending capacity of the World Bank and the Inter-American Development Bank that, welcome as it is, is equivalent to just a fraction of what was used to aid the insurer AIG, for example..

The financial daily Cronista Comercial warned against financial protectionism, such as the repatriation of bank funds from emerging markets. In that order, at the London Summit Argentina demanded financial regulations that prevent banks from withdrawing capital from their subsidiaries in emerging countries. I also argued in my article in Cronista Comercial that no international financial institution should be subject to the veto power of one country, for example, "condemning trade protectionism whilst - at the same time - practising financial protectionism is hypocrisy."

As mentioned, the third priority for the summit was the agreement on a revised regulatory and supervisory framework, including a strategy to cleanse the balance sheets of financial institutions in a credible and effective way without accelerating the disintegration of formal intermediary channels, which could result in additional funds drying up. On the trade front, a standstill on protectionism, monitored by the World Trade Organization, would be more relevant than closing the imbalanced Doha package.

Political Interests

The G20 Summit showed itself to be one of the most developing-country-friendly meetings where all the members came together in a way they never have before to decide on quite detailed proposals that will reshape the global financial system for a long time. In this context, the Argentinian public's view of the effectiveness of their leaders in the summit and on the global stage remains positive.

In statements to La Nación, Cristina Fernández, as the president of Argentina, said she did not see such a stark antinomy between fiscal stimulus and regulation. As a matter of fact, the president was in agreement with both the US and the UK to stimulate demand, but also with Germany and France about the necessity of the stricter oversight and regulation, especially regarding offshore activities. Ms. Fernández also regretted that the outcome of the summit would not include acknowledgement "of the failure of neoliberalism," but she predicted that its conclusions lead in that direction.

Another Argentinean leader, Alfredo Chiaradía, the Minister for International Economic Relations, called for the inclusion of more developing countries at the London Summit, in an article in the pro-government Página 12. He said Argentina and like-minded members of the G20 believe trade finance is crucial to get world trade moving again and argued that the World Bank's resources should be trebled.

Finally, Alfonso Prat-Gay, the former president of the Argentine Central Bank, argued in La Naciòn that the London Summit offered an opportunity to take a fresh and unbiased look at monetary and financial issues. He said that the main problem is the US's reluctance to change and suggested that countries like Argentina, Brazil and Mexico have a lot to offer in terms of their own experience in dealing with monetary and financial turmoil.

International Interests

According to public opinion, President Cristina Fernández is seen as a developing country leader doing everything in her hands to get what she thinks is needed to make the  international system fairer. Infobae: "Cristina Fernández emphasized that 'the reading of the document describes very clearly that there is a strong self-criticism of a system that had no regulation and a very strong criticism of the lack of control over credit rating agencies.‘"

The participation of Fernández in the G20 Summit has been positively perceived as she comes out as a Latin American leader trying to have more influence in global decisions affecting vulnerable regional economies.

Global Leadership

Clarín viewed the battle against tax havens as one worthwhile and very relevant measure to stop capital flight both from the outgoing and ingoing ends. This is an opportunity to reform economic policies with a systemic viewpoint and to avoid all the burden of adjustment on developing countries which have so far been weak links bearing an unfair burden. The Argentinean public opinion suggests that this international crisis does not have a direct bearing on their pockets, which might be the reason for the lack of riots and protests.

La Nación stated: "The president of Argentina, Cristina Fernández, celebrated today the successes achieved by Latin American countries at the summit of the G20, including the elimination of one paragraph of the statement which proposed the flexibilization of labor laws as a way out." La Nación further pointed out her argument was supported by Brazil because of the bad experience in that regard.

At the receiving end of neoliberal-framed international economic policies, the country finds in the G20 an arena to share its concerns in a cooperative and non-antagonistic manner.

Buenos Aires