Proposed solution for complex interconnected problems: a mixture of unrelated things

The G20 Communiqué presents lofty goals of growth, unemployment and poverty reductions with little mention of energy, environment and global imbalances or US mortgages and property bubble created the demand and liquidity for Chinese goods financed by Chinese savings.

The underlying principles of exploitation and competition are obviously untouchable. The goals, it says, should be obtained by market and free trade and principles of oversight, accountability and transparency. According to the pamflett, Rule of law is a market principle and effectively regulated financial systems equals free market.

The Bretton Woods institutions shall be reformed to increase its efficiency and legitimacy. Poor and emerging contries are excluded from the international financail institutions. The crisis began in USA and spread to the rest and it will worse in developing countries. Now the “emerging and developing countries, including the poorest countries, should have greater voice and representation.” How? According to Bush by “extending voting powers and government structures… particularly to those that have increased their funding”.

Thus, while Saudi Arabia and China may get some say and Japan increases its influence over the BWIs, the “basic vote” may continue to serve primarily to facilitate a false apparence that they are run according to the principle of equality among states.

No concrete commitments were made in regards to concerted demand stimuli. No promises to ODA and debt relief , which, in an ideal world, would be a part of a global stimuli package with positive long term and global security, justice and development implications.

There are however reasons for hope as I’ve written in Swedish in a post below.

Moreover, shockingly, the lame duck goes from entrenched denial to open admission:

“Those of you who have followed my career know that I’m a free market person,” he said. “Until you’re told that if you don’t take decisive measures, then it’s conceivable that our country could go into a depression greater than the Great Depression.”

The communiqué includes tangible and shor-term regulation, transparency and oversight goals, and other fashionable and ceremonial appurtenances, that are to be due in March. A new meeting will be held in April, in London, Watford or some place else in the old world.

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