After the Fall/The Economist

The most that could be expected from the G-20’s Washington summit is the creation of a “bull market in new schemes for global economic governance”, given the “vague and sprawling agenda”, says this pre-summit article. The very convening of the G-20 summit instead of the G-7 shows that the rich have realised that the rest of the world cannot be kept outside closed doors anymore. Proposals might emerge to tackle the present crisis, introduce financial regulation and rectify the imbalances of global macroeconomics—Asian saving and Western spending. Difficult negotiations lie ahead, if only to dispel the notion that the “Bretton Woodsmen of 2008 are grabbing the credit before they have earned it”.

G-20 summit presents united front, but offers mostly promises/ Wall Street Journal

As the title suggests, promises of future cooperation and bold action were aplenty, but the tough decisions on high-stake economic and regulatory issues were mostly left to the administration of President-elect Obama. In the event, the summit became a good first step, but needing urgent follow-throughs. The blame for the current situation was somewhat fixed “on policy makers, regulators and supervisors, in some advanced countries, (who) did not adequately appreciate and address the risks building up in financial markets”. The summit’s commitment towards free market principles and its warning against protectionism were touted as victories for the outgoing administration of President Bush.

Leaders temper G-20 ambitions/Financial Times

The Bush administration wanted to pass on the real burden to the Obama administration, while European leaders, with the eurozone already under recession, pressed for a timetable for reforms. Emerging economies like China kept a low profile and a European diplomat, citing Gordon Brown and Nicolas Sarkozy candidly stated that the summit was “not going to be a second Bretton Woods”. This article also mentions US Treasury Secretary Hank Paulson’s admission that the US should accept “some criticism” for the crisis but ot “sole responsibility”. Overall, the mood is one of little action and a lot of talks, with the onus shifted to the future.

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