No hope from G20 summit

 

The host of the just-ended G20 summit, Australia, had billed the summit as critical in establishing international co-operation to boost the global economy and create jobs. A communique issued at the end of the summit held in Brisbane stated that an agreement had been reached among the participants to boost global growth by an additional 2.1 percent over the next five years or more than US$2 trillion.

The economies of the participating countries at the Brisbane summit make up 85 percent of the world economy and therefore the world observed with concern the deliberations and outcome of the meeting given their impact on the global economy.

But there is doubt over some of the key G20 members’ commitment to their declaration to boost the world economy and create jobs. The G20 leaders met at a time prospects for the global economy are gloomy, making the pledges to raise global growth to deliver better living standards and quality jobs for people across the world, a pipe dream. Indications are pointing to growing stagnation and a recession in the world economy and increasing risks of another financial crisis with worse repercussions than the 2008 disaster.

Some of the risks responsible for the current state of affairs or impending implosions can be blamed squarely on the United States and its Western allies in the G20 bloc.

The crises in the Middle East and Eastern Europe are anchored in Washington’s drive to use military and economic power to further its global hegemony.

Major Western participants at the summit, including British Prime Minister David Cameron, Canadian Prime Minister Stephen Harper, Australian Prime Minister Tony Abbott and US President Barack Obama, lined up to denounce Russia and threaten further sanctions aimed at crippling its economy, the ninth largest in the world.

Washington, in pursuance of its imperialist agenda, has worsened the confrontation with Russia by engineering the fascist-led coup in Ukraine and launching a new war in the Middle East, aimed primarily at ousting Russia’s ally, Syrian President Bashar al-Assad.

The US has also been at the forefront of excluding China, the world’s second largest economy, and Russia from major agreements which have a bearing on the world economy.

Russian President Vladimir Putin, speaking to the TASS news agency, made the obvious point that the sanctions “run counter to the very principle of G20 activities, and … to international law” and violated the principles of the World Trade Organisation.

Putin warned that such measures would also impact on other economies, including the US and the EU. “Everyone must understand that the global economy and finance these days are exceptionally dependent on each other,” he said.

The G20 leaders knew very well before jetting to Brisbane that no tangible agreement was going to be reached on economic co-operation, climate change or any of the international issues affecting the world today.

“In the five years since the G20 first met in the face of the 2008 global financial crisis, the world economy has been mired in an intractable breakdown, signalled today by acute financial instability, deepening economic slowdown and fears of further crises.

“The limited economic co-operation of the first G20 meeting has been replaced by an increasingly open resort to the beggar-thy-neighbour policies accompanied by threats, provocations and the use of military force,” wrote Peter Symonds on Global Research.

November 2014
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