is preparing for a summit of the leaders of the 20 most
powerful nations (G20) on April 2, which political and
economist analysts say could make or break the existing
global financial system.
economic analyst, Franch Bioncherry of the Centre of
Research on Globalisation has called the London Summit
the 'Last chance before global geopolitical dislocation'
and he warns that his organisation had been predicting
the current global financial crisis for quite sometime
before it fell on us all.
warnings are being sounded all round about the impending
crisis and the consequences of the failure of a London
Summit in 1931 to come up with solution before the great
depression of the 1930s is being recalled. Both the
American President Barack Obama and British Prime
Minister Gordon Brown who is hosting the summit have
stressed on the importance of all countries to promote
massive spending on stimulus packages to boost economies
of member countries while calling upon measures to
enforce strict banking regulations but some European
nations are not as enthusiastic if not downright caustic
in their criticisms.
'Way to hell'
Tuesday the Czech President Mirek Topolenek who is now
the President of the European Union - on the basis of
appointment on a rotational system - called Obama's
stimulus package a 'way to hell.' After that attempts
were being made at damage control before the London
Summit by pointing out the Czech Republic does not
represent European consensus.
Analysts however point out that newer members of the
European Union with weak economies are not as supportive
as richer Western European members about massive
investments on stimulus packages. Topolenek had said
that Obama's package will put a huge strain on the
global financial markets. Nonetheless even the richest
of European nations such as Germany and France have not
been as enthusiastic about massive investments on
stimulus packages and have not come up with anything
close to the American government investments.
great investments could lead to inflation, it is feared
by these Europeans. However both Obama and Gordon Brown
are trying to cover up differences on the issue between
them and most European nations. Obama writing in the
International Herald Tribune last week has said
that'bold, comprehensive and coordinated action was
needed to stem the global economic crisis' and that
economic challenges the world faces today cannot be met
with halfway measures or isolated efforts of any
Some agreements already made
London Summit is a follow up to the G20 meeting held in
Washington in November last year. Already preparatory
meetings have been held and progress made. Agreements
have been reached on many steps that can help restore
global economic growth through enhanced international
coordination and further measures are to be recommended
IMF has also announced plans to reform its lending rules
and adopt measures to make IMF lending more attractive
to emerging market economies. Reports also say that
steps to improve regulation of the global financial
systems have already been agreed by G- 20 economic
ministers and central bank governors.
prime objectives of the London Summit are: To take
whatever action necessary to stabilise financial markets
and enable families and businesses to get through the
recession; strengthen the global financial economic
system and restore trust and confidence and put the
global economy on the track of sustainable development.
Hindu on March 26 reported that Gordon Brown and UN
Secretary General Ban Ki Moonhad met last week on the
forthcoming summit and agreed that the UN should seek a
stimulus package of one trillion dollars to help poor
nations tackle the financial crisis for the next two
Analysts have already commented that the role of China
at the London Summit would be crucial. Chinese President
Hu Jin Tao will meet Barack Obama, Gordon Brown and
Russian President Dmitry Medvedev on the sidelines of
the London Summit. Even though an estimated 20 million
Chinese have lost their jobs in the current global
meltdown and much of its export industries affected,
China is said to be the least affected of countries in
the global meltdown.
Chinese spokesmen are on record saying that China would
be for solidarity in international financial reform and
would oppose trade protectionism. A Chinese Professor
Zhao Xigun has been quoted by the Xinhua news agency
suggesting that emerging economies like China, India,
Brazil and even Russia might take a different stand for
developing economies. They are likely to call for
greater voting rights for developing countries within
international financial organisations.
has two trillion dollars of foreign exchange reserves
and how much China would contribute to help the world to
weather this crisis is being eagerly watched. The Vice
Governor of the Chinese Peoples' Bank Hu Xiaolian has
been quoted in China View that they would support IMF's
innovative financing attempts and more efficient and
would also continue investing in US bonds while paying
close attention to the fluctuating value of their assets
Hu Xiaolian has said. Despite its financial clout
realises well the need for international cooperation and
open access to markets for their goods. Even in this
crisis where Western economies are down on their knees,
China poses no threats even though the China bogey will
be hard to erase from the minds of the West.
Whether East and West can meet quite contrary to
predictions of the English poet of imperial days,
Rudyard Kipling, will be evident in London on April 2.
summit will be without demonstrations least of all in
London. British demonstrators will mark the event on
April 2 as 'Financial Fools Day' with Four 'Horsefolk'
of Apocalypse - Climate, Chaos, War and Jobs opposite
the Bank of England while another group will stage
Fossil Fools' Day also opposite the Bank of England.