G20: Any Major Reforms :(

They call themselves G-20, the developed nations with trillion+ dollar economies and also the epi-center of the global recession which engulfed the world in late 2008. And the recently concluded Toronto Summit last weekend doesn't offer much to the root problem, but called in for less fiscal deficit. Much of the critical reforms like the transaction tax on banking, opening up multi-lateral trade pacts and global capital structure model are yet to have their approval. The World leaders looked optimistic in containing the recession and meet later this year in Seoul to study the progress of their initiatives.


I find this summit a mockery and against the purpose of intent, where-in the host Canada spent almost $1 billion to ensure the G-20 took place amidst security threats. And not to forget the differences and trust factor between the East & West is quite visible in the run-up to the summit. Europe wants to cut down the expenditure to reduce the deficits, whereas US prefers to spend more to stimulate the economy in near future. BRIC prefers to have a balanced approach where-in to chalk out a proposal for gradual stimulus withdrawal with moderate spending with a road plan in mind. Our economist came up with the plan to cut down our country's current account by 2013-14 , at least they know where we are heading rather than our foreign counterparts.


Other aspect we can focus on is the Trade Agreements between the countries. Pascal Lamy, WTO President mentioned that the negotiations between the members have made technical progress and if this speculated Doha Talks put into action would infuse around $300-400 billion into the global market. The will to push this forward since 8 years led to the trade deficits because of protectionist policies of the developed nations in supporting their domestic industry. Surprisingly China looks quite firm and commanded respect from all quarters and though it wouldn't cross paths with US, but this ambitious communist is well set to dominate the forex markets with its recent move to keep Yuan floating against dollar.


Well to me, why not have a universal currency to eliminate this currency wars which affects the countries reserves. And with strict banking regulations, and strong domestic growth every country can thrive to provide a balance in their approach. I just wish G-20 act responsibly in withering away this worst recession and bring the world back on the growth trajectory..