What happened at the G20? Not much.
Lots of talking. Lots of reports to be completed. Basically, lots of homework to be done. Large on to-do’s, short on actual progress. Some specifics:
Summit highlights
What the G20 leaders agreed to:
ON THE ECONOMY
Use fiscal measures to stimulate domestic demand
Help emerging markets gain access to finance
ON FINANCIAL INSTITUTIONS
Expand the Financial Stability Forum to include emerging economies
Reform the International Monetary Fund and World Bank
Ensure the IMF, World Bank and other development banks have sufficient funds
Give emerging countries a greater voice
ON TRADE
Trade barriers would not be raised over the next 12 months
Work on restarting global trade talks by the end of the year
ON REGULATORY RULES
Establish supervisory “colleges” for major international financial institutions
Review how compensation packages affect risk-taking
Ensure credit rating agencies meet high global standards and provide greater disclosure
Improve accounting standards
More disclosure on complex financial products
My question about whether or not China would step up to the plate with a new idea for an economic order. For their part they talked the talk:
Mr. Hu [China's President], who carries the trump card of $2-trillion (U.S.) worth of reserves, added that any reforms should be geared toward creating a “new financial order that is fair, just, inclusive and orderly.”
But that’s about it. Very little action taken this weekend, unfortunately.
