Bridges Weekly Trade News Digest • Volume 12 • Number 36 • 30th October 2008
Bush Gathers G20 to Discuss Financial Crisis, Doha
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US President George W. Bush has invited the heads of 20 industrialised and developing countries to convene in Washington, DC on 15 November to discuss the current financial crisis, the White House announced last week. The world leaders will also address the ongoing push for a world trade deal at the WTO, Bush’s press secretary said.
Discussion at the Group of 20 summit, the first in a series of meetings aimed at addressing the financial crisis, is set to revolve around “financial markets and the global economy,” White House spokeswoman Dana Perino told reporters.
In President Bush’s weekly radio address, he explained: “During this summit, we will discuss the causes of the problems in our financial systems, review the progress being made to address the current crisis, and begin developing principles of reform for regulatory bodies and institutions related to our financial sectors.”
“While the specific solutions pursued by every country may not be the same, agreeing on a common set of principles will be an essential step towards preventing similar crises in the future,” he said.
The meeting will also touch on ongoing - but struggling - efforts to reach a global trade deal at the WTO, the White House press secretary said.
“I’m sure Doha will be discussed,” Perino told reporters. “I am sure that the leaders, when they get together, will try to talk about how do we continue to make sure that trade is open and that it’s liberal so that every citizen across the world is able to benefit from free trade,” Perino said.
But by the time the summit is held, the next US president will have been chosen, and Bush will be a lame-duck president, with limited influence. Whatever solutions are aired are therefore likely to serve only as recommendations for the next administration. Both of Bush’s would-be successors - Democrat Barack Obama and Republican John McCain - have been informed of the summit, but it is uncertain as to whether the election winner will attend.
Stock markets worldwide have tumbled recently, largely a result of last year’s US sub-prime mortgage crisis, and fears of a global recession are widespread.
Although world leaders differ on the causes and solutions to the credit crunch, many measures have already been implemented to combat the crisis: the US has initiated a US$ 700 billion bailout package and followed the lead of European countries in buying stocks in privately owned banks.
The 15 November meeting will include officials from Argentina, Australia, Brazil, Canada, China, the EU, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom and the US. Additionally, the managing director of the International Monetary Fund, the president of the World Bank, the United Nations secretary-general and the chairman of the financial stability forum, a group consisting of major national financial authorities and international financial bodies, have been invited to participate.
ICTSD reporting; “G20 Summit to tackle financial crisis amid recession fears,” FRANCE24, 22 October 2008; “Bush seeks ‘common princiiples’ to solve global financial crisis,” BLOOMBERG, 25 October 2008.
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World shift from $ to an acceptable International Currency which may be designated as “Globar” and all countries including Developed Nations should adhere to certain basic financial discipline in the present day Globalized world instead of preaching theories only to developing and least developed countries while doling out aid with conditionalities that are not followed by Developed world.