Well, today "s September 24, 2009 opens on top of Pittsburgh who will reunite on the table leaders of the G20 (the G8 plus major emerging markets). For some This date will go down in the annals of economic history in the world of the XXI Century, for others it is a summit among many others. Obviously, the earthquake of 2008 and its financial effects contagion which are still felt today "s show that the architecture and modus operandi of the International Financial System (IFS) deserves a thorough reform. From here and there, multitudes of proposals arising from the leaders, renowned economists and heads of major international organizations. Indeed, it is the effectiveness and feasibility of these proposals are problematic and that the leaders of the G20 at the summit of Pittsburgh are supposed to look over there.
recognize it, it is extremely difficult to progress in a few lines, the outline of the summit but we're just here trying to substantiate our point of view focusing the analysis on key points that should guide the summit, which s' Ad PHENOMENAL.
Adopt a draft reform of the IFC is not easy. You should know the main points on which the negotiations must be directed. With the pace of recent tendencies and the current crisis yet, five poins deserve the attention of leaders at the summit:
i) Tax havens;
ii) traders' bonuses;
iii) The establishment of standards that govern the IFC;
iV) Equity members at its organization (IMF, World Bank);
v) Resources internatinal organizations (IMF, WB).
Among these differet points, only point i) (tax havens) and v) (the resources of international organizations) that should not be an issue at this summit. The discussion of poins ii) (bonus traders) iii) (the establishment of standards), iv) (equity member) will not be easy. During these interventions, Obama has already indicated to several occasions that he is not at all agree in fixing the salaries of traders (indeed the traders' bonuses). In a country like the U.S. where the financial system is heavy, it is extremely difficult to imagine that the president will take action against the self-regulating market, the main essence of the American economic model. There is see that economic liberalism is largely rooted in the highest peak of the U.S. administration. On the other side of the pendulum, President Sarkozy is adamantly opposed to this kind of practice that he says is the focal point of the recent crisis. The difference between the laws of each country is a major problem in establishing universal standards which should govern the IFC. The failure of Basel II (which has never been popular in the USA) is an example not to mention formal emerging that is beginning to be entendre.En regards the last point: the power of equity members of international agencies, do not dream, the world of finance looks like LOTS to a life in the jungle is the law of the jungle prevails, and when we say stronger, it is primarily the USA and Europe, after the other. We know the rule, the WB is reserved to a U.S. national, IMF is for Europe, it is.
Basically, if the United States and Great Britain are not to thoroughly reform the mechanism of laissez-faire market (very basis of Anglo-Saxon financial system), the European under mpulsion couple Sarko- Merkel put forward a regulation depth of IFC. Emerging countries first and foremost China (donors of the United States), Brazil, India will try to weigh in the balance at the summit, but it seems that the real discussion will focus on the position and balance of antagonism USA / Europe. As
said the U.S. economist Galbraith: "The capitalist system is unstable in nature especially in its early youth. "The capitalist system G20 (especially the G7) is certainly mature for a long time, but financial capitalism and the quest execessif performance in light of the model in recent years is still young . It is surely time to challenge this system to empty (the librelisme anything goes) and reflect on the possibility of establishing a regulated financial system.
Among the various alternative models proposed, the Keynesianism (in its disguised as do many politicians or pure) is in the forefront. So finally, like the previous London summit of 02 April, there will be good returns from the summit, but the effectiveness of measures will remain in the realm of uncertainty.
Meanwhile, the financial system begins to regain its pre-crisis pace if one refers to the main stock indexes and key indicators of major countries despite the economic slump of the real sector (unemployment, etc.).
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