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Article

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The invitation by the Group of 7 countries (G7) to 12 more countries from various regions of the world and the EU and transform themselves into a Group of 20 countries (G20) is indeed a welcome step. The economic power relations have changed considerably in the past decade or so and it was therefore natural that the global governance architecture should begin to reflect this new reality. The efforts of the G20 in tackling the 2008/9 global crisis did indeed reinforce the efficacy of this initiative.

The question, going forward, is to examine whether G20 could become an effective coordinating mechanism for maintaining stable conditions in the global economy to promote sustainable and equitable growth for improving the living standards of the majority of the 7 million inhabitants while holding inflation under control and generating gainful employment opportunities. The other objectives the G20 would have to set for its’ self would be how to reduce global imbalances, keep the markets open for trade, and reform the international financial system. There seems to be a broad consensus on this agenda setting but the anxiety is whether it possesses the tools, leadership, culture and the authority for conflict resolution and enforcement of its decisions.

Publication Source

East Asia Forum Quarterly

Publication Date

7-2011

Pages

1-2

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