Global Buildup for G20 Summit

By Michael Burgevin

As countries and financial institutions from around the world await the upcoming Group of 20 summit, cooperation between the member states has become a key issue. The G20, whose members control 85 percent of the world’s economy, will convene on April 2, 2009, at the ExCel Exhibition Center in London in hopes of creating a clear and defined global strategy for economic restoration. Many world leaders have already formed foreign alliances, recognizing that this summit has the potential to transform the way countries approach international finance.

China has already outlined its commitment towards international cooperation. Foreign Minister Yang Jiechi recently stressed the importance of multinational collaboration at the London summit, stating that China is “ready to work with the United States and other countries to weather the storm and make joint efforts to overcome the difficulties brought by the financial crisis.” Yang also announced the need for developing countries to hold more authority within the International Monetary Fund (IMF) and World Bank, a change that would further Chinese influence in both organizations. However, it remains unlikely that United States or the EU would support such a measure.

Many European countries have also announced their commitment to intrastate collaboration. On February 22, the European leaders of the G20 gathered in Berlin, formulating a cohesive continental platform for the summit. Topics covered included the advancement of financial regulation and the bolstering of the IMF. The leaders stressed the significance of financial regulation, emphasizing their stance “that all financial markets, products and participants... must be subjected to appropriate oversight.”

However, many worry that the United States will be unwilling to support strict financial control. Mark Duckenfield, professor at the London School of Economics, recently explained how financial regulation contradicts the fundamental American dream of a free market. “Any effort,” Duckenfield concluded, “to come up with international rules applicable to the U.S. usually raises fears about American businesses finding themselves hog-tied as a result, which gets Joe the Plumber types shouting bloody murder.”

While many U.S. politicians have expressed their personal opinions toward international cooperation and financial oversight, the Obama administration has not yet released a detailed position for the G20 summit. Many view U.S. support as imperative for the summit’s success, as demonstrated during a recent visit of U.K. Prime Minister Gordon Brown to Washington when, in an address to congress, he stressed that "the challenges we all face are all global" and requested that the U.S. support international cooperation.