One day later, I read this comment on Xinhua that probably explains some of my thoguhts better than I did.
Actions better than words http://news.xinhuanet.com/english/2009-04/04/content_11130222.htm by Xinhua writer Liu Si BEIJING, April 4 (Xinhua) -- The just-concluded Group of 20 (G20) summit in London has won oceans of applauds from the world as it is believed to have harvested positive and practical results by formulating effective measures to heal the ailing world economy. Participants are believed to have made due contributions to the success of the summit, by jointly working out a package of agreements and commitments, including a 1.1-trillion-U.S.-dollar global rescue deal, and taking a landmark move of tighter financial regulation. Although the commitments are indeed encouraging, it is more important to fulfill them through solid actions. Just as UN Secretary-General Ban Ki-moon said after the summit, "these commitments made by G20 leaders must be translated into concrete action." Chinese President Hu Jintao on Thursday called on the international community to make concerted efforts to ride out the crisis when he addressed the summit. "The only right choice is for all of us to work together and deal with it," he said. China, the largest developing country, has spared no efforts to implement its proposed measures and played a conducive role in the world in building up confidence, maintaining stability as well as pushing for an economic revival at an early date. At the summit, China also announced it would contribute 40 billion dollars to the International Monetary Fund, highlighting its role as a responsible member of the United Nations. The United States, the world's leading economy, also pledged to turn words into actions. U.S. President Barack Obama said Thursday that while the United States is a world power, it is prepared to listen and learn as well as lead. He said he will ask Congress in the next few days to provide an immediate 448 million U.S. dollars to help the poorest countries. Nonetheless, the "Buy American" measures in the newly adopted stimulus package by the Obama administration, which bar the use offoreign iron, steel and manufactured goods in public works projects, have aroused concerns among other countries about the U.S. protectionist moves. Similarly, French President Nicolas Sarkozy once said publicly that it was unjustifiable that French car brands made abroad, for instance in the Czech Republic, should be sold in France. His remarks had rung alarm bells in Europe for a tendency of protectionism. At the summit, the G20 leaders reaffirmed their commitment to resist protectionism and push for an ambitious conclusion of the Doha Round global trade talks. Looking back, they committed themselves to free trade at the Washington summit last year, but not all of them have kept their words. This time, they said in a joint statement that "by acting together to fulfill these pledges we will bring the world economy out of recession and prevent a crisis like this from recurring in the future." If the world's major economies, in particular the G20 member states, put their promises into practice, confidence will be restored that the political leadership is capable of meeting difficulties and challenges, and pulling the world economy out of mire. It is not picky to demand to see tangible actions and deeds, even though the world media and the public save no words to hail the G20 summit. Instead, we should remain sober and critical. The G-20 leaders announced Thursday they agreed to meet again by year's end to check on the progress and effectiveness of the measures. We need to wait and see. On Apr 3, 3:28 pm, xi <[email protected]> wrote: > Somehow, this message follows "The three visions at the G20 > Options" (1). Those are just my thoughts, in some extend based on > what others think but not necessarily matching any particular thought, > but mine. > > Leaders have praised co-operation to face this crisis. I wish that the > sense of competition, dominance, etc. among economies is past and > every country accepts finally that this is a multilateral world, where > you either co-operate or you sink. Unfortunately, I cannot be so > optimistic, feelings do not change suddenly although economic need > seems to be pushing humility in some countries. But I guess that it > takes time. > > On down to earth measures, as prof. Stiglitz told after the summit, > "the evil is in the details". Let us see how things evolve to believe > if this particular meeting, besides great words and very professional > PR, gave something useful. > > 1) IMF raises $250 bn from Europe, Japan and China to help economies. > $750 bn but nobody knows which country or countries will put them into > IMF coffers. However, everybody has China into mind. I think that it > will depend on two coditions. First of all, whether IMF (or rather USA > and Europe) accepts that China wants to control that its funds are to > be used for development and well being, not for financial exhuberance. > Secondly, it means that it is not a blank check. Yes or yes, it will > depend on IMF to become a true multilateral institution, not a Euro- > American institution. We can predict how those funds will be used (or > rather misused) if they fall on uncontrolled "blue-eyed white" > economists´s hands (quoting pres. Lula´s words). > > 2) To raise $250bn in special drawing rights (SDR) from the IMF might > help everybody. It helps to move toward the global single super- > sovereign currency. But only if they achieve what I stated above. If > not, China will act as a sovereign IMF. That is not the solution that > we all want, but that would be the only option if authorities do not > restore balance into their economies and do not accept > multilateralism. > > In fact, since months ago, that is how China is acting through swap > mechanisms (yuan-local currency) with more and more countries around > the world such as Argentina in Americas, Belarus in Eastern Europe, > Angola in Africa or Malaysia in Asia, among many others and more to > come. And it works good enough. If IMF does not achive, at least, > similar results they should not expect more. > > 3) Fortunately, all countries agreed on regulation. Influenced by > prof. Stiglitz, I think that the evil is details. Financial means are > just means to serve economies, nothing more and nothing else. > Financials must adapt to economies, not the opposite. To manipulate > financials in order to disguise rates is useless. Cyber virtual wealth > is rather virtual than wealth. What matters is that people have jobs, > and therefore homes, food, clothes, etc. What accounts recorded in > computers might say means nothing if it does not allow people to get > those goods and services that they need. This is not just sweet heart, > selflessness, etc. it is also strict and rigurous selfishness. Co- > operation. Economy is down to earth or is nothing. > > Unfortunately, for all the above, we must wait and see. > > Peace and best wishes. > > Xi > > (1)http://groups.google.com/group/world-thread/browse_thread/thread/75a3... --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "World-thread" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/world-thread?hl=en -~----------~----~----~----~------~----~------~--~---
