Föhrenbergkreis Finanzwirtschaft

Unkonventionelle Lösungen für eine zukunftsfähige Gesellschaft

Posts Tagged ‘G20’

Who runs the world?

Posted by hkarner - 22. Juni 2020

Date: 18‑06‑2020

Source: The Economist

As America gets tired, China gets busy

Crises can bring clarity. In the financial crisis of 2008‑09, the g20 club of big economies came into its own, reflecting how economic power had spread beyond the rich world’s g7. One thing the covid‑19 pandemic has laid bare is an absence of global leadership. This time the g20 has done little beyond a rhetorical pledge to “do whatever it takes” and supporting debt‑repayment suspension for poor countries. America, which led global campaigns to defeat hiv/aids and Ebola, has been absorbed in its internal arguments. And the un Security Council has confirmed its dysfunctionality.

The council’s five permanent members (p5) are split between the Western three and Russia and China; some suspect the authoritarian duo of having a formal pact. Russia wields its veto often, sometimes alongside China. Instead of leaping into action over covid‑19, the council mustered its first discussion of the crisis only in April. France and Russia have both been keen for the leaders of the p5 to get together in the un’s anniversary year, but have found this hard to arrange. Den Rest des Beitrags lesen »

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Finding Solid Footing for the Global Economy

Posted by hkarner - 20. Februar 2020

As the Group of Twenty industrialized and emerging market economies (G-20) finance ministers and central bank governors gather in Riyadh this week, they face an uncertain economic landscape.

After disappointing growth in 2019, we began to see signs of stabilization and risk reduction, including the Phase 1 U.S.-China trade deal. In January, the IMF projected growth to strengthen from 2.9 percent in 2019 to 3.3 percent in 2020 and 3.4 percent in 2021. This projected uptick in growth is dependent on improved performance in some emerging market and developing economies.

Monetary and fiscal policy have been doing their part. In fact, monetary easing added approximately 0.5 percentage points to global growth last year. Forty-nine central banks cut rates 71 times as part of the most synchronized monetary action since the global financial crisis.

But the global economy is far from solid ground. While some uncertainties have receded, new ones have emerged. The truth is that uncertainty is becoming the new normal. Den Rest des Beitrags lesen »

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Does the G20 Still Matter?

Posted by hkarner - 12. Juli 2019

Jim O’Neill, a former chairman of Goldman Sachs Asset Management and a former UK Treasury Minister, is Chair of Chatham House.

The first few gatherings of the G20, at the height of the global financial crisis, yielded concrete results, and seemed to promise an auspicious future for global governance. But in the years since, the group has increasingly replaced action with empty talk, piling ever more goals on top of the unmet objectives of summits past.

LONDON – When the G20 leaders held their first summit in late 2008, many welcomed what looked like a diverse, highly representative new forum for crafting common solutions to global problems. The group acquitted itself well in responding to the global financial crisis, and, for a while, its emergence as a forum for international policy coordination seemed like one of the only silver linings of that mess.

I was certainly among those applauding the G20’s initial achievements. Since 2001, when I identified the rise of the BRIC countries (Brazil, Russia, India, and China) as a key feature of the twenty-first-century world economy, I had been a major overhaul of global-governance structures. As I argued at the time, the continued dominance of the G7 (Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States) was increasingly with the complex world of the early 2000s. Den Rest des Beitrags lesen »

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Posted by hkarner - 4. Juli 2019

FURCHE-Kolumne 270 Wilfried Stadler,

Dass globale Probleme nur dann lösbar sind, wenn die gewichtigsten Spieler der Weltwirtschaft nach gemeinsamen Regeln suchen, hat die Finanzkrise 2008 höchst unsanft in Erinnerung gerufen. Seit damals treffen deshalb die Spitzen von 19 führenden Wirtschaftsnationen, ergänzt um den Präsidenten der EU-Kommission, regelmäßig zusammen. Sie repräsentieren nicht weniger als 85 Prozent der globalen Wirtschaftsleistung.

US-Präsident Trump nützte den jüngsten G20-Gipfel in Japan zu einer weiteren Demonstration jener Taktik des „divide et impera“, die seinem Narzissmus so entgegenkommt. Bilaterale Treffen mit Xi Jiping, Angela Merkel oder Wladimir Putin sollten wieder einmal alles in den Schatten stellen, was sonst noch am gemeinsamen Konferenztisch besprochen wurde. Der Abstecher nach Nordkorea war die Draufgabe zur Ego-Show.

Ob ihn wohl irgendjemand darauf aufmerksam gemacht hat, dass das Treffen in Osaka mit dem 75. Jahrestag des Abschlusses der Konferenz von Bretton Woods im US-Bundesstaat New Hampshire zusammenfiel – und wie anders die Rolle der Vereinigten Staaten damals war?
Im Sommer 1944 glückte den Vertretern von 44 Ländern nach dreiwöchigen Verhandlungen ein Schlussdokument, in dem die Eckpfeiler der Nachkriegs-Wirtschaftsordnung fixiert wurden. Das Ende des Weltkrieges war damals trotz der erst kurz zuvor geglückten Landung der Alliierten in der Normandie noch nicht endgültig absehbar. Den Vorsitz über die meist bis tief in die Nacht andauernden Gespräche führte John Maynard Keynes, der renommierteste Ökonom seiner Zeit. Den Rest des Beitrags lesen »

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Bastards attract each other

Posted by hkarner - 30. Juni 2019

Date: 29-06-2019
Source: The Wall Street Journal
Subject: Trump Praises Saudi Crown Prince for Doing ‘a Spectacular Job’

Most other leaders at the Group of 20 summit shunned the crown prince, after the murder of a prominent Saudi journalist

President Trump meets Saudi Arabia Crown Prince Mohammed bin Salman during a working breakfast on the sidelines of the G-20 summit in Osaka, Japan, June 29.

OSAKA, Japan—President Trump gave a rare endorsement to Saudi Crown Prince Mohammed bin Salman, who was shunned by most leaders at the Group of 20 summit after the murder of a prominent Saudi journalist.

Over breakfast, Mr. Trump called the crown prince “a friend of mine” and said he’s done “a spectacular job” in opening up Saudi Arabia and empowering women, a reference to his move allowing women to drive. Mr. Trump also praised Saudi Arabia’s purchases of U.S. weapons and cutoff of funding to terrorist groups. Den Rest des Beitrags lesen »

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The Lost Spirit of the G20

Posted by hkarner - 20. Juni 2019

Javier Solana, a former EU High Representative for Foreign and Security Policy, Secretary-General of NATO, and Foreign Minister of Spain, is currently President of the ESADE Center for Global Economy and Geopolitics, Distinguished Fellow at the Brookings Institution, and a member of the World Economic Forum’s Global Agenda Council on Europe.

As Japan prepares to host its first G20 leaders’ summit later this month, little remains of the open and cooperative spirit that marked the first such gathering in 2008. But although the United States will most likely continue its protectionist drift, other G20 countries should use the occasion to make a clear case for free trade.

MADRID – On June 28-29, Japan will host its first G20 summit. The initial gathering of G20 leaders, back in November 2008, took place amid the turmoil that wracked global financial markets following the collapse of Lehman Brothers. It produced a clear statement: “We underscore the critical importance of rejecting protectionism and not turning inward in times of financial uncertainty.” In other words, the leaders of the world’s largest economies agreed not to repeat the policy mistakes that aggravated the Great Depression in the 1930s.

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How to stop governments borrowing behind their people’s backs

Posted by hkarner - 15. Juni 2019

Date: 13-06-2019
Source: The Economist

Principles on debt transparency endorsed at a G20 summit may help

In 2016 the government of Mozambique confessed to secret debts of $1.4bn, or 11% of gdp, mostly as loan guarantees for state-backed companies. Growth faltered, the currency slumped and foreign donors pulled back. The results have been “devastating”, says Denise Namburete, a civil-society activist, describing health centres that have gone two years without medicines. American prosecutors are pursuing eight people involved in the scandal, including three foreign bankers and a former finance minister, on charges of money-laundering and fraud.

The Mozambique case may be unusual—or not. Even the imf is scratching its head about how much governments truly owe. In some places the mystery is loans from China and other emerging lenders. In others it is advance payments from oil traders, liabilities from public-private partnerships or hidden loans from commercial banks. The Institute of International Finance (iif), a group of banks and financial institutions, has responded to mounting concern by drafting principles on debt transparency. Finance ministers of g20 countries endorsed them at a summit in Fukuoka, in Japan, on June 8th-9th. Den Rest des Beitrags lesen »

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G-20 Financial Leaders Criticize Trade Tensions for Impact on Growth

Posted by hkarner - 11. Juni 2019

Date: 10-06-2019
Source: The Wall Street Journal

The U.S. was at odds with most countries on how tariffs have impacted global growth and how to resolve trade conflicts

Finance ministers and central bankers fretted about trade and geopolitical tensions and agreed to stand ready with action in case those risks intensify, according to a statement released Sunday after a weekend Group of 20 meeting in Japan.

FUKUOKA, Japan—The Group of 20 major economies decried worsening trade tensions and their impact on global growth, with the U.S. and China locked in a protracted trade battle since negotiations fell apart a month ago.

Finance ministers and central bankers fretted about the trade and geopolitical tensions and agreed to stand ready with action in case those risks intensify, according to a statement released Sunday after a weekend meeting in Japan. Their statement didn’t mention the tariffs the U.S. and China have used, though the measures and their effect weighed on the officials’ closed-door discussions. Den Rest des Beitrags lesen »

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A Second Chance to Fix Finance

Posted by hkarner - 5. Februar 2019

Bertrand Badré

Bertrand Badré, a former managing director of the World Bank, is CEO and Founder of Blue like an Orange Sustainable Capital, and Co-Chair of the World Economic Forum’s Global Future Council on International Governance, Public-Private Cooperation, and Sustainable Development. He is the author of Can Finance Save the World? 

Laurence Daziano is a professor of economics at Sciences Po Paris.

Despite progress since the 2008 financial crisis, reforms of the financial sector have been fragmented rather than fundamental. In particular, the system still lacks the effective holistic regulations needed to encourage the optimal global allocation of capital.

PARIS – In December 2018, US stocks recorded their biggest monthly decline since the subprime mortgage crisis. The sharp fall reflected current concerns about slower economic growth, higher interest rates, Brexit, a possible US-China trade war, and rising geopolitical uncertainty. But the recent equity-market volatility has been made worse by a global financial system that remains largely unreformed more than a decade after the 2008 crisis.

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The US-China trade war is on hold

Posted by hkarner - 4. Dezember 2018

Date: 03-12-2018
Source: The Economist

Donald Trump and Xi Jinping agree a fragile truce at the G20 summit

PERHAPS IT was the dessert of caramel-rolled pancakes, crispy chocolate and fresh cream. Or perhaps President Donald Trump had already decided that, during a working dinner on December 1st, he wanted a deal with President Xi Jinping of China. Whatever it was, after sounds of applause drifted out to assembled journalists, the two announced a “highly successful” negotiation. „This was an amazing and productive meeting with unlimited possibilities for both the United States and China,” said Mr Trump.

A more realistic assessment would be that the meeting produced a truce based on two elements: some murky mercantilism, and a deal to talk about a deal. China will increase its purchase of American farm produce, energy and some industrial goods. In exchange America will delay an escalation in tariffs, from 10% to 25% on $200bn of goods planned for January 1st. That is on hold until March 1st at the earliest. But because the formal talks between the two countries could well fail, this truce is worryingly fragile.

The Chinese commitment to raise purchases of American goods is by an amount “not yet agreed upon, but very substantial”. That is supposed to reduce America’s bilateral trade deficit with China. Requiring the Chinese government to manage import flows is odd given how America’s government complains that China still behaves like a non-market economy. Den Rest des Beitrags lesen »

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