G-20 Pittsburgh Summit: Reasons to Celebrate?
BRASILIA, Brazil -- Optimism is the leitmotif surrounding the upcoming Pittsburgh Summit. Yet certain concerns remain. A year ago, as the dramatic recession unfolded around the world, many were convinced we were heading for a repeat of the Crash of 1929.
Due to measures adopted at the G-20 Summit in London last April, the worst threat in decades to the global economy was contained.
After a 9 percent reduction, global trade has rebounded, thanks to the injection of U.S.$250 billion in flexible, unconditional credit. Nearly 50 million jobs will be lost in 2009, but there are signs that the worst is past. Another U.S.$750 billion went to stimulate demand and stabilize the current accounts of many -- particularly developing -- countries hit by the drastic cutback in foreign trade and credit.
The scale of resources mobilized has been unprecedented. Yet even more significant was the quick and decisive show of collective will involved.
The degree of trust thereby regained has helped keep the economy afloat during this period of great uncertainty and turbulence.
The international community stared at the abyss below but managed to pull back. Should we celebrate having avoided the worst? Should we sit back and wait for the next crisis? After all, the mirage that markets are self-regulating and that financial profiteering is somehow grounded in economic logic has finally collapsed. Yet even those countries that were not wooed by the promise of easy gains found themselves unshielded from this gale-force crisis.
When G-20 leaders first met in Washington last year, no fully worked out policy proposals were available. Yet they did not let themselves get bogged down in inertia or stalemate. They were aware that the current crisis reflects structural imbalances that reach far beyond financial misdoings. Climate change and growing global competition for energy resources and markets starkly confirm what we already knew: that globalization has made us ever more dependent on each other.
Last year Brazil took the lead in defending the consolidation of the G-20 as a forum of leaders who could bring rationality to bear in managing the crisis. The time had come for a show of political will and for undertaking fundamental structural adjustments.
This explains our dismay at the reluctance of developed countries to embrace proposals for reform of the Bretton Woods institutions. There is fierce resistance to putting teeth into financial markets' oversight mechanisms. Banks are going back to the very practices that precipitated the recent chaos. Bankers continue to be overpaid, while millions of men and women lose their jobs.
Nor do we understand why industrialized countries refuse to shoulder their share of the burden when it comes to fighting global warming. They cannot delegate to developing countries tasks that are theirs alone.
Signs of a return to protectionist instincts are equally worrisome. As is the current paralysis of the Doha Round, since we know full well that its conclusion would greatly speed global economic recovery.
Such attitudes threaten the London Summit's main achievement: the acceptance that the challenges of a globalized planet will not be met without the active involvement of all. Our decisions must be made in a more transparent and representative manner. Developing countries did not cause today's major crises. They are, indeed, their main victims. Yet, more and more, they have also become part of the solution.
The emerging world has gone beyond just denouncing speculative adventurers and the breakdown of obsolete dogmas. It is making an active contribution to finding solutions. We must bring the representation and the voting power of developing countries into line with their relative weight in the world economy.
We will arrive at the U.N.-sponsored climate-change negotiations in Copenhagen this December with our own alternatives to guarantee sustainable development. The Amazon Fund that Brazil launched in 2008 combines the well-being of millions of people with protection of our natural heritage. We have substantially reduced the clearing of our forests. Brazil's experience with biofuels and the widespread use of hydroelectricity point the way to an energy blend in harmony with environmental preservation.
Policies adopted by countries in the Global South have created tens of millions of new consumers, who will drive the recovery of the global economy. In Brazil, income distribution has been shown to be a powerful inducement to healthy growth.
This is no time to suspend anti-cyclical policies that have proven their worth. The poorest countries, hardest hit by the crisis, are in a hurry to see their economies rebound and thus renew their peoples' hopes for prosperity.
For all those reasons, we stand for more democratic and fair global governance. We hope to see results at the Pittsburgh Summit. Of course, the G-20 cannot solve these problems alone. The crisis of international governance will not be overcome by multiplying new ad hoc groupings, ranging from the G-8 and the G-14 to the G-20 or whatever else might arise in the future. They can only be successful if they help us get back to the reform of the multilateral system.
We want the kind of governance that makes our interdependence an inducement for self-interested solidarity, instead of a pretext for the strong to always come out ahead. The G-20 is an extraordinary chance for us to prove that this is no rose-tinted daydream.
We can move forward together because the world has changed. This is the message of hope and commitment that Brazil is carrying to Pittsburgh.
DISTRIBUTED BY GLOBAL VIEWPOINT NETWORK/TRIBUNE MEDIA SERVICES. HOSTED ON LINE BY THE CHRISTIAN SCIENCE MONITOR.
Nick Jefferson: The Problem With Bail-Outs
Whether or not any of us thinks that bail-outs can be justified in principle, in practice they tend at best to reinforce poor management, and at worst they even reward it.
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I like Obama, but I seriously envy Brazil ... They get Lula as their President. For 2 terms.
we hve to change an economy that, when some corporation lays people off, it means their stock price goes up. how is that a good incentive for a strong society? we also need to stop the socializing of losses and negative externalities and the privatizing of gains and positive externalities!
watch elizabeth warren talk about the crisis of the middle class in the US.
http://www
Obama may say he is against the protests at the G20 this week publicly, but you can bet he'll be using the protests as a threat to try to get the banks to agree to the limited reforms he wants soon enough. he will say, "look, you deal with me, and agree to these reforms, or you'll have to deal with these angry mobs of people more and more in the future....
it's just like how MLK used to specter of more riots to get leaders to the table and get civil rights enacted.
support the protesters: http://www
indy media on the protests: http://ind
the bigger, louder, and more often protests like this happen, the better the reforms will be. the more room progressive dems will have to push on obama, and the more room he'll have to push on the banks. protests are the tip you can see of an iceberg of change that they create. please donate and support these folks!
Peter Schiff was voted as the No 1 warner of the crisis on HuffPo. (see: the warners of the crisis)
The most popular video with Peter Schiff deserves to be mentioned in that global context,
as that "majority" opinion - in 06/07 was practically parroted all over the world.
What it shows: financial experts forecasting and advising in 06/07. a simple re-run, yet it obviously
"wows" ... it obviously makes a lot of sense knowing this one for many people:
http://www
a video with Bill Maher and Art Laffer can be found in the YouTube listing on the side, it is a
follow up Art Laffer (he is in the first video) and what he said, quite funny. A must see
“Banks are going back to the very practices that precipitated the recent chaos.”
In some countries, following a vehicular incident, wreckage is swept away and the scene returned to a pristine condition. Traffic flow then reestablishes itself, usually adopting a similar pre-established routine.
Some nations however, drag the mangled mess out of the way, but leave it clearly visible. The traffic flow then tends to be mollified. Entirely by the influence of that sad salutary spectacle.
As a Pittsburgher, I say Welcome to Pittsburgh Mr. President! We welcome you to our beloved Steel City as President of all the Citizens of Brazil.
Thanks, HamletsMil, for welcoming my fellow citizens. I am from the "steel belt" in Brazil and welcome you here at any time! But, my friend, I suggest you research Lula's life a little bit before you say you welcome him at your house. Anyone who preys on ignorance and fear should not be seen as a decent person.
"The poorest countries, hardest hit by the economic crisis, are in a hurry to see their economies rebound and thus renew their peoples' hopes for prosperity
We have seen the poor country, and he is us!
VILA LULA, I LOVE LULA, But Education must be priority for all not just for the right-wing Media/Busi
Hey, Bric. It's nice to hear about your experience in Brazil. But let me ask you one thing: among the kids who have no regard for their school or education as a whole, how many of them do you think are black or predominantly black? What's the percentange among those who do not fit in this category? Associate it to the fact that our educational system is flawed to the soul and you get the sad statistic you mentioned above. I am telling you, man, I blame those numbers mostly on the kids rather than the system.
Bric - since you are Brazilian, you know that Lula has been president for 7 years, but your country has been ripping off poor people and non-Europeans for 500 years. I think you should get some perspective: your country has made tremendous improvements in education in the last 15 years. Do you not remember what your country was like before FHC? But the magic doesn't happen over night. It takes decades to educate a person. A presidential mandate in Brazil is only 4 years. And besides, getting high school graduates into college is not the first step. Getting Brazilians through grade school is the first step. 10% of the grown ups in your country still don't know how to read. That is a major cause of crime. That is a major drag on workplace productivity. That is a problem that needs to be attacked ASAP. I agree that there are opportunities to achieve social justice through education reform in Brazil from top to bottom, but the most meaningful changes, I think are carried out from bottom to the top.
For example: For a person go get the Bachelors Degree in Brazil he/she will need more-less R$ 30.000,00 (U$ 20,000.00) This is the price for a small One Bedroom Apartment at a bad neighborhood in Sao Paulo, the biggest Brazilian city. My point is, as of today, only the so-called "whites-brazilians" can afford it. If you wanna find out more what I am talking about go visit Brazil yourself and see with your own very eyes how the Black-Mixed-Raced people are treated, as a second class citizen. Brazil has roughly 200 million people, 49% "so-called whites", and 51% "Black-Mix
So here is what Brazil could do to remedy the problems you describe: Brazil could become a leader in virtual education (distance learning), by providing college level courses--in Portuguese of course--for a minimal price to anyone around the world, and free to its own citizens. In this way, it could raise the educational level of its own people, even those with minimal income or in remote areas. Additionally, it could increase the usage of its native language throughout the world, and thus expand its influence.
Ambitious, yes, but the investment would not only solve some of Brazil's thorniest problems, it would also give great returns to the country in the future and secure its place as the most democratic of the BRIC nations.
Fanned. Excellent post.
Very good idea. One point that I l'd like to add is that his government has proven to be a very innovative and progressive one in terms of pro-poor policies with such programs as the Bolsa Familia, a CCT program that has helped to significantly reduce poverty levels and huge pockets of inequality. There's no perfect world but the efforts have to be reckoned with.
I couldnt agree more, you said it all.Ironic
Both you and BRIC are simplistic in your analysis of how Brazil deals with ethnicity.
And your last statement is totally incorrect.
I think you need to get some perspective. First of all, Lula has been president for 7 years. Brazil has had ethnicity problems for 500 years. But like all the other shortsighted people, you just want to pin your grips on whoever is in power today.
LULA is "GREAT" take for consideration that in Brazil, as of today September/2009, the "so-called whites" along with "Catholic Church" and the "Brazilian Newspapers and TVs" are majority right-wing. So LULA managed to be in power all these years even with little support from those selfish groups. LULA is supported by the people, by the way, 70% of Brazilians approves President LULA's job. It's a huge victory for democracy considering that he was born in Northeast Brazil one of the pooerest regions in the world. The only thing LULA never have addressed in Brazil is racism.
Estimado senor el Presidente da Silva:
?A que hora devuelve Manuel Zelaya a los autoridades Hondurenos?
Go Brazil. I have a few comments written down commenting on our overall situation!
Our financial and economic system is fundamentally broke – period
Scrupulous speculation on Wall Street with Hedge Funds and Derivatives got us into this mess. Thanks to George Bush’s free market policies and Alan Greenspan who put everything in place.
All the big banks were completely bankrupt and had hundreds of billions of Dollar debt. Last fall we bailed them out which was a big mistake because now the tax payer is on the hook. By the way those banks are still hopelessly bankrupt and only because of fraudulent bookkeeping techniques which allow them to hide their real debt do they actually show profits!!!!
As a logical consequence of cancerous Corporatism and failed financial regulations we as a country (and almost all the states) are basically bankrupt. That means our raw capitalistic model has once for all failed!!!!!
Globalization has failed. Wall Street is over.
We have to put an end on how Wall Street works.
Wall Street will play a much, much smaller role in the future.
We need to Banks to invest in the real economy again. In small and medium sized businesses.
We need a dramatic change!
Presidente Lula, os meus parabéns pela sua posição corajosa, em defesa do estado de direito e da democracia.
Brasil is an emerging power. We need to work with them.
We, the few Brazilians with brains, most welcome you because this country needs to learn a lot!
Can I emigrate?
apduncan1
Don't amuse yourself. We have a government made up of people with more "cojones" than yours. We are ready for any hardships coming our way. So not like you, that rather take crap, so that you can continue watching your your tv in your sofa. We Hondurans really know the meaning of the words dignity and freedom. By the way, the one that has been looking for "leadership" (more like complicity) over there is Mel, son of Fidel.
Good for you. Don't let what happen to Cuba, Venezuela and Nicaragua happen in Honduras.
don't take duncan seriously. he once claimed that American of Hispanic heritage have nothing in common with Spain.
Lula DaSilva, why don't you use your message of hope and commitment toward Honduras. Your government is instigating anarchism in my poor country. The Brazilian embassy is housing Zelaya the Pariah, while Zelaya is encouraging his very few followers, (some already proven to be from Venezuela and Nicaragua) to acts on insurrection or delinquency, the same way it happened in Venezuela a few years ago. As an American, can you ever imagine an Embassy in US soil doing what the Brazilian are doing in Honduras? Unconceivable, right? Zelaya, violated the Honduran Constitution and wanted Honduras to become a Venezuelan satelite. But we, Hondurans, want a better future for our children.
I thought Chavez was supposed to be the bad guy according to the golpistas.
Im sorry you dont agree with Zelaya but he has every right to try to come back to his legitimely acquired power, in either case, even if what he was doing was wrong, there are ways within the law to make it happen, a staged coup is nowhere near the right way to handle a president you dont like.
Zelaya tried a Hugo Chavez-sponsored coup d'etat via a fraudulent -- votes were already marked -- poll.
The Honduran Supreme Court did only what they were supposed to. To protect their Democracy.
Didn't Zelaya win a presidency?
I am not defending Zelaya. Truth be told, I know nothing about Zelaya. But Brazil has every right to give him refuge in the Brazilian embassy. In case you don't know or understand this... the Brazilian embassy is not Honduras. It is Brazil. That is the way diplomacy works. Deal with it. If Zelaya has so few followers, though, how on earth did he win the presidency in the first place?
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