ROME - Rejecting protectionism, the Group of Seven finance ministers pledged Saturday to work together to support growth and employment and to strengthen the banking system so the world can overcome its worst financial crisis in 50 years.
But the bad news continues. The final statement on their two-day meeting in Rome also predicts a gloomy forecast, with the severe economic downturn continuing through most of 2009.
The recently concluded World Social Forum is a
good gauge for assessing the state of the world's alternative social,
economic and political movements.
For 15 years, I have attended the World Economic Forum in Davos.
Typically, the leaders gathered there share their optimism about how
globalisation, technology and markets are transforming the world for
the better. Even during the recession of 2001, those assembled in Davos
believed that the downturn would be short-lived.
Will he or won't he?
In the shadow of the economic crisis, a war of words rages
over whether President-elect Barack Obama will hold to his campaign
promise of opening up the North American Free Trade Agreement for
renegotiation.
When the
government of Ecuador failed to make a scheduled interest payment on
private bonds today, it was hardly the first time a country had
defaulted in the middle of a financial crisis. In fact, it wasn't even
the first time for Ecuador. The small South American country did so
just 10 years ago, at a time when the economy was reeling from natural
disasters and a drop in oil prices.
The
international financial crisis has shaken the self-confidence of the
managers of the international financial system. Their frantic efforts
to prop up the global financial system and stimulate national economies
are noteworthy, not only for the magnitude of the funds they are
throwing at the problem but also for demonstrating they don't seem to
fully understand the system that they created. Their confusion is
producing the best opportunity in 60 years to create a more socially
and environmentally responsible international financial order.
The leaders of the G-20 Group of countries who met in
Washington DC for an emergency meeting to revamp the global financial landscape
can be compared to a parable in the Hindu ‘Panchantra'. Like the six blind men who failed to see the
elephant, they grappled in bright light for six hours and yet failed to frame
an action plan that could truly stimulate the global economy.
November 2008 was the
100-year anniversary of the Congo's conversion from the personal property
of Belgian King Leopold II to a colonial possession of Belgium, itself.
The King's brutal rule, documented in Leopold's Ghost, embarrassed
the Belgians into switching "landlords" in 1908, but did little
to ease the colonial burden on the Congolese people.
With the global economy facing severe recession, lame-duck President Bush is hosting the leaders of 19 other major countries in Washington this weekend to try to prepare a coordinated response.
A noble goal. But, alas, Bush is the wrong host. Washington is the wrong venue. His guest list is too selective. And Bush has already made it clear he is still clinging to erroneous policies that created the crisis in the first place.
BOGOTA - Ratification by the United States Congress of the Free Trade Agreement (FTA) with Colombia appears to be further away than ever, due to the victory of president-elect Barack Obama, who has declared his opposition to the treaty, and to the effects of the financial crisis.
