The Global Economy in Turbulent Times

CHAPTER 16 G-20 Summit, Los Cabos 2012 GJAP: More of the Same¹

I have just returned from the Shadow G-20 meeting of the International Policy Advisory Group convened by the Asian Development Bank (led by President Haruhiko Kuroda) and the Earth Institute of Columbia University (under the direction of its president, Professor Jeffrey Sachs). Its theme: the global economy in uncertain waters—question marks over fiscal sustainability, financial stability, structural adjustment, and global environmental adjustment. The gathering of about 30 global scholars (including Mr. Daniel Cohen, adviser to the president of France) deliberated for two days with the view of being better placed to influence the outcome on key global issues confronting G-20 leaders at its June 18–19, 2012, meeting in Mexico.

As they met, they were no better off than where they left off last November in Cannes, France, facing heightened risks from Europe that threatens to cripple the global economy. As it turned out, this time the stakes were even higher, as growth in both the rich and emerging nations was now slackening in sync. Not surprisingly, the G-20 meeting turned out to be a nonevent—with a declaration that is full of “sound and fury, signifying nothing.” The G-20, accounting for two-thirds of the world’s population and 85 percent of global output, was expected to press for swift and decisive action by Europe to resolve the turmoil. This time, some leaders did push to steer the agenda’s focus away from ...