The year 2009 has brought many hardships and challenges to the global community. Despite that fact, this week the U.S. gives its annual thanks for continued abundance and prosperity (national holiday Thanksgiving). While it may not seem so on the surface, there is much to be thankful for the world over. As we say on this side of the Big Pond, the best way to keep a positive attitude is by “counting your blessings.” The following is a progress report of some of the important initiatives enacted by the G20 nations to safeguard the global economy for the future.
The Era is Over
Several months ago, the G20 nations promised that the “era of banking secrecy is over.” Also pledged in the G20 Summit and in discussions throughout the world this year is that the era of U.S. “cowboy economics” is over as well. The world’s nations are adopting a more cautious approach to finance using the painful lessons learned over the past decade.
New Initiatives in the Global Top 20 Economies
An angry and determined G20 met this Spring in London to discuss the ending of an era of American-style “anything goes” capitalism. The death-knell came for U.S. financial supremacy as the follow-the-leader crowd of G20 countries followed the American bulls right off the cliff to insolvency. To resolve the crisis, huge banking bailouts were drafted by Germany, France, the UK, and the U.S. as well as emergency measures throughout the European Union and G20 nations. The crisis has ushered in a new era of global fiscal responsibility. The G20 has created a template for global regulatory changes.
Policy Changes at the International Monetary Fund
The IMF, one of the top strategists of the G20 Summit in London, agreed to increase resources for troubled economies to $750bn. The G20 will also contribute $250bn to boost trade. UK Prime Minister Gordon Brown said the G20 will “crackdown on tax havens” and draft “stricter controls of bankers’ pay and bonuses.”
G20 New Initiatives: Pittsburgh Summit
The major outcome of the Pittsburgh Summit (September 2009) is that the G20 will permanently replace the G8. The financial crisis has revealed how interconnected the 20 nations are in the 21st century global economy. The new G20 policy will include developing countries like China, India, Brazil, and Indonesia.