[Marxism] G20 Communique: A Review

Sukla Sen suklasenp at yahoo.co.uk
Thu Apr 2 20:25:00 MDT 2009


"For
more than 30 years in economic journalism I have written about many
summits. Their job has been to rubber stump the Washington consensus,
and offer an illusory picture of collective action and grip – when the
truth has been "market states" running up the white flag before the
ever advancing battalions of global finance. This summit is decisively
different – the most substantive of its type since 1944. It offers a
break with the Washington consensus, free market ideology and financial
turbo capitalism – and is assembling the world around a new order and
set of ideas. It is half done and menaced by the scale of the crisis
along with powerful instincts at times like this for protectionist "
sauve qui peut". But it comes at a time when there are the first signs
if not of green shoots at least of some economic stabilisation – as the
stock market recovery is tribute. It is an achievement. It would be
graceless not to acknowledge it – and it might even signal a turning
point."


That's a pretty strong and definitive claim. Needs be carefully looked into.
Sukla

http://www.guardian .co.uk/commentis free/2009/ apr/02/g20- financial- crisis2


 	    



        






                


    
        	    



                




        



	    




  	   	        
   	   	   	   	
      	       
  	   	        
   	   	   		
	
		
        
            

 	
     	
 	 	
 	
		
			 		
	 				G20: Best summit since 1944
					
	  				The verdict: This extraordinary series of commitments could be the turning point for the world economy
	  	
        	  	
  	
  	
  				        

			 								                	        	        	            Will Hutton
				        
			guardian.co. uk,			
				            Thursday 2 April 2009 17.52 BST





	
			This is an extraordinary series of commitments from G20
leaders. I have no doubt in the weeks ahead the ambiguities,
papered-over cracks and over-selling will start to come to the surface.
I also worry that given the catastrophe that has overwhelmed the
western financial system, provoking plunging trade volumes and
vertiginous falls in output, too little has been done to address the $2
trillion of toxic assets in bank balance sheets, mobilise global demand
and resist protection. We will know in 6 months time whether today was
enough, as the G20 accepts when it says it will return to these themes
if the crisis deepens. But that should not stop acknowledgement
of what has been achieved. There is a new regulatory framework for the
so-called "shadow financial system". The demi-monde of tax havens,
hedge funds, derivative trading and off balance sheet lending –
together with grotesque pay and bonuses - that has grown up over the
last 20 years and which fuelled the extraordinary credit boom, and the
stunning losses that have bankrupted so many banks, building societies
and insurance companies, is to be internationally regulated for the
first time. Similar principles are to be adopted by the world's top 20
countries. Colleges of regulators are going to hold each other to
account. A blacklist of tax havens is to be published.This not
only makes a repeat much less likely – in any case hardly a risk at the
moment. More importantly it sends an important message about what kind
of capitalism G20 leaders like. Get rich quick capitalism based on
financial engineering and evading moral responsibilities – the type
celebrated by the prime minister as chancellor in so many speeches
lauding City of London innovation and genius – is now out. What is in
is business building capitalism that creates wealth, jobs and pays its
taxes. Amen to that.As importantly, the IMF is to get another
$500 billion, along with extra funds for the World Bank. Both
institutions had dwindled in size to become marginal actors. Now they
are central pivots of the world system with serious financial
firepower. Moreover poorer emergent economies will qualify for $250
trillion of SDR's, IMF paper money, resources from IMF gold sales and
access to $250 billion trade credit fund. There will be powers to name
and shame countries whose behaviour endangers the world economic order.
This the best deal for the less developed countries for some decades –
better even than debt relief.For more than 30 years in economic
journalism I have written about many summits. Their job has been to
rubber stump the Washington consensus, and offer an illusory picture of
collective action and grip – when the truth has been "market states"
running up the white flag before the ever advancing battalions of
global finance. This summit is decisively different – the most
substantive of its type since 1944. It offers a break with the
Washington consensus, free market ideology and financial turbo
capitalism – and is assembling the world around a new order and set of
ideas. It is half done and menaced by the scale of the crisis along
with powerful instincts at times like this for protectionist " sauve
qui peut". But it comes at a time when there are the first signs if not
of green shoots at least of some economic stabilisation – as the stock
market recovery is tribute. It is an achievement. It would be graceless
not to acknowledge it – and it might even signal a turning point.
	 
	
	








	


	
	


      


More information about the Marxism mailing list