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G20 Meeting in Seoul




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The author of this entry is responsible for this content, which is not edited by the Wilson County News or wilsoncountynews.com.
Dr. M. Ray Perryman
Columnist
November 3, 2010 | 2,409 views | 2 comments

Next week, a historic gathering of national leaders will assemble in Seoul, South Korea, for the first meeting of the G20 Summit in a non-G8 Asian nation.

Cabinet ministers and heads of countries accounting for about 80% of the world’s wealth will sit down together to explore an agenda focusing on strengthening the ongoing economic recovery. (The US joins Canada, France, Germany, Italy, Japan, Russia, and the UK in the G8; the G20 also includes Argentina, Australia, Brazil, China, India, Indonesia, Mexico, Saudi Arabia, South Africa, South Korea, Turkey, and the European Union.)

In addition, participants are anticipated to forge an agreement that would enhance the stability of the global economy as well as adopt reforms designed to improve the global financial regulatory system and modernize international financial institutions. Other matters that will be considered include global financial safety nets and currency “wars” between nations.

President Obama will be among the dignitaries attending the November 11-12 function as part of his 12-day trip to various Asian nations where he will stress the importance of improving strategic and economic relationships within the region.

The chairmanship of the organization by South Korea signifies a change in direction from one that relied on collective action during the recent global financial downturn to one that will emphasize international support for developing countries. South Korea, which has climbed to the world’s 15th largest economy over the past half century, is expected to use its own “rags-to-riches” story to emphasize the importance of international development projects.

Just prior to the G20 meeting, about 100 of the world’s top business leaders are scheduled to hold the first ever G20 Business Summit in Seoul.

Often, governments overlook the potential contributions groups of this kind can make in solving economic challenges. However, because of the growing importance of collaboration by G20 members in addressing global issues, the business executives hope to play an integral role in helping infuse the value of innovation and free market principles into the agenda for the heads of state to consider. One of the key items of interest is the need to bring the enormous global liquidity in the private sector back into investing and hiring on a major scale.

In addition to advancing such proposals, G20 Business Summit members are expected to evaluate what progress has been made since the G20 met in Toronto in June. At that gathering, the participants endorsed efforts to cut deficits and slow debt burdens.

The G20 was created in December 1999 in response to the financial crises that arose in the 1990s and in recognition that more emerging nations should be included in discussions pertaining to global economic and governance matters. Since that time, various groups of ministers and chief executives of different nations have met to dialogue and analyze initiatives and possibilities.

Since there are no formal votes on matters or resolutions on the basis of fixed voting shares or economic criteria, all members of the G20 are free to have their voices heard and considered. With consensus the underlying principle of all G20 activities, the amount of commitment a nation has to a particular proposal shapes its influence with other countries.

Following the meeting next week, the chairmanship of the G20 will shift to France, which has already made a commitment to move forward whatever recommendations are made by the G20 participants, as well as attempt to address other new global economic challenges as they arise. The overarching goal of the leadership, which the French are expected to demonstrate over the next year, is to stabilize patterns of cooperation between nations around the world to improve financial conditions worldwide.

Such is a lofty goal, but one that is certainly worthy of whatever efforts can be mustered to make it a reality. I applaud the efforts of the G20 and trust that the decisions made by the group will prove highly consequential in improving the economic conditions of nations around the world.

Dr. M. Ray Perryman is President and CEO of The Perryman Group, www.perrymangroup.com.





THE ECONOMIST



M. Ray Perryman
 
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Your Opinions and Comments

 
Maximus  
Floresville  
November 13, 2010 7:30pm
 
Well - they did not have to be here to acknowledge the ass-whupping the Dems just got. You see by the time they return it would have been forgotten. The price of his trip was top story for a few days right after the November ... More ›

 
Rock'n chair Rambler  
Over Taxed, TX  
November 7, 2010 8:05am
 
" G20 Business Summit members are expected to evaluate what progress has been made since the G20 met in Toronto in June. At that gathering, the participants endorsed efforts to cut deficits and slow debt burdens." Cut ... More ›

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