Melisa Deciancio is a research assistant at the Facultad Latinoamericana de Ciencias Sociales (FLACSO).

The Role of the G8 in the G20 Era

After the Pittsburgh summit, public opinion in Argentina welcomed the pre-eminence of the G20 over the G8. The idea of a larger group defining the future of the global economy, including Argentina, was perceived as an opportunity for the country to gain influence in the global arena. 

Little attention was paid to what happened at the Muskoka G8 Summit, as Argentina is not a member of that group. The local media did cover some of the issues of the meeting, in particular, Iran and Turkey’s nuclear plans, as this issue is closely related to Argentina’s claim that Iran is responsible for the terrorist attacks on the Israeli embassy and Asociación Mutual Israelita Argentina (AMIA) in the 1990s. Ahead of the G8 summit, Argentina had supported the United States’ proposal at the UN Human Rights Council to sanction Iran for abuses of human rights. Aside from this issue, the G8 had little impact on Argentine public opinion. There has been no coverage on the relationship between the G20 and the G8 or on the effectiveness of the G8 during the present economic crisis. 

G20 Conflict or Cooperation        

The divergence between the G20 members was noted by all of the media, especially given that President Cristina Fernández has been a strong advocate on the side of those against adjustment and in favour of supporting effective demand. The discussions on whether to remain with or exit from the stimulus packages clearly divided the group. Regarding this issue, Argentina went to the summit with a specific agenda: President Fernández once again made a call for the reform of the IMF, criticizing the effects continuous adjustment policies have had on the Argentine economy, ultimately leading to the 2001 meltdown. Foreign Minister Héctor Timerman stated that such policies, “Will deepen the global crisis” and that “the people should not be made to absorb the cost of the crisis.” 

One of the issues that had considerable impact on public opinion during the summit was the debate between President Cristina Fernández and French President Nicolas Sarkozy. The media — even those politically opposed to her — celebrated Fernández’s response to President Sarkozy when he pointed out that Latin American countries do not understand the pressures that Europe is currently facing. Fernández quipped that Latin American countries understand what a crisis is very well and that Argentina is very interested in the survival of the euro because the Argentine central bank holds euro-denominated reserves.

The G20 Framework 

Given the scant coverage of the G20’s “Framework for Strong, Sustainable and Balanced Growth” in Argentina, one must conclude that the details may indeed be too complex to be of broader public interest.

G20 Record of Achievement

The limited achievement of the G20 summits, especially after the Pittsburgh commitments, was reflected in the media, but not in a strongly negative sense. President Fernández indicated her satisfaction with the summit, although no serious commitments were made. In the media, she affirmed that taken together, the inclusion of the term “decent work” and the acceptance by the more powerful countries that “one size does not fit all” and all countries need not undertake adjustment, the summit could be perceived as a success. She also pushed for the end of fiscal havens, the control of credit rating agencies and regulation of speculative capital flows. Despite the lack of progress on these particular issues since Pittsburgh, Fernández was positive that more progress could possibly be achieved at the next summit in Korea.

For Argentina, the lack of implementation is a significant issue. Most of the commitments relevant to Argentina made in the past have not been achieved, especially those proposed by developing countries and related to Argentina’s policy interests. Despite the lack of progress and the looming disagreements, there was no doubt cast on the value of Argentina’s continued participation and cooperation with other developing countries to influence global rule making.