CIGI EXPERTS RATE THE OUTCOME
While offering just a few specific actions to bolster confidence and help stabilize the global economy, the G20 summit in Cannes ended today with an anti-climactic communiqué that fell far short of initial expectations, capping a week in which the world’s “premier economic forum” was deeply distracted by the Greek debt crisis.
On a positive note, the appointment of Mark Carney, governor of the Bank of Canada, to the position of chairman of the Financial Stability Board capped a push for concrete progress on the G20’s initiative to coordinate financial regulation.
The global economy has entered a new and difficult phase. Global growth has weakened, downside risks have heightened, and confidence has waned. Uncertainty over the sustainability of public debt levels in some advanced economies has increased, and the rebalancing in demand from the public to the private sector and from the external to the domestic sector has not materialized.
G20 Leaders Summit -- Cannes -- 3-4 November 2011
1. We, the Leaders of the G20, met in Cannes on 3-4 November 2011.
2. Since our last meeting, global recovery has weakened, particularly in advanced countries, leaving unemployment at unacceptable levels. In this context, tensions in the financial markets have increased due mostly to sovereign risks in Europe; there are also clear signs of a slowing in growth in the emerging markets. Commodity price swings have put growth at risk. Global imbalances persist.
3. Today, we reaffirm our commitment to work together and we have taken decisions to reinvigorate economic growth, create jobs, ensure financial stability, promote social inclusion and make globalization serve the needs of the people.
A global strategy for growth and jobs
The G20 meeting in Cannes has not been without its share of good news. The choices facing Greece in dealing with its debt situation have become clearer, with Europeans openly evoking the possibility of Greece leaving the Euro zone, and European banks beginning to write off large chunks of Greek debts on their books.
Behind the glitz, here in the heart of Continental luxury, Europe is in trouble.
European leadership is in disarray – not only in Greece.
Should we have expected more?
I was asked yesterday by an Indian reporter here, whether I think China’s leaders are as disappointed with the Greek Prime Minister as his European counterparts.
My answer was “no.” That China’s leaders have a fairly sober view of the European situation. Not because Beijing, or Asians, are not concerned. Or do not care. They do. They hope that European leaders will come forward with a clear roadmap, so that others can then figure how to contribute, and when. So that the Continental crisis does not spread further.
Amid debt-crisis storms in the Eurozone, was the summit a complete washout for the long-term G20 agenda? Setting the context for today's final communiqué, three policy experts will brief journalists at the Summit Media Centre at 12:00 today on the G20 outlook.
WHEN: Friday, November 4, 2011 -- NOON
WHERE: Briefing Room 8, on the 4th fllor of the International Media Centre
WHO: The following experts will be available at the briefing:
9:00 Commemorative photograph of the signing of the Convention on Fighting Tax Evasion
9:15 Working Session
10:30 Working Session
11:45 Working Session
13:00 Working Lunch
14:15 Press conference of the President of the French Republic at the Press Centre, Room 1
15:30 Bilateral talks with Mr Manmohan Singh, Prime Minister of the Republic of India
Amid the media buzz here in Cannes over Europe’s ever deepening crisis, it is easy to forget that the core agenda for the Summit is supposed to be “strong, sustainable, and balanced growth”.
Whereas for the advanced economies, especially those with trade deficits, the key word above is “balanced”, for much of the developing world, the key word is “growth”.
Solving Europe’s problems, long-term, and global macro-imbalances only has meaning if there is growth in the world economy; strong and sustainable.
And it is here that the BRICS come into the discussion.
WHAT: China’s interaction with the G20 presents a multitude of questions: What does China want for the G20? What is China thinking for Cannes? What will China do? Does China support the G20? If so, how and why?
Visit CIGI’s media briefing to hear Gregory Chin, Chair of CIGI’s China Working Group, answer these and other pertinent G20 questions.
What can the G20 do to ease the plight of the jobless, whose numbers have increased and whose circumstances have worsened dramatically in many G20 countries?
Senior Canadian economist Daniel Schwanen answers that, while governments urgently need to bring public finances under control, they can and should also take steps together to promote business investment and hiring, to help secure a dynamic recovery and create jobs.
Visit CIGI’s media briefing to hear CIGI Senior Fellow Daniel Schwanen answer these and other pertinent G20 questions.