Monday, September 28, 2009

From G-8 to G-20

The G-20 met last week, which is the new face of the former western dominated G-8. The inclusion of 16 more countries into the economic coordinating body was a response to the economic crisis the world has been in for the past couple years. However the expansion of the summit is permanent and the new countries will be present at the governing table at future meetings as well. The expansion also includes a redistribution of shares in the IMF, allowing the developing countries to have a larger share in how and where the money is spent. The United States will remain with the largest amount of shares. This encompassment of new countries demonstrates the need to have more voices present in the economic coordination, as well as the end of a time where the former G-8 can make all the decisions themselves. Along with more power to developing countries, there is a hope that the new involvement will help level the balance between those countries that are in deficit and those in extreme surplus, such as the US and China. Hopefully this will level the trade deficit and allow balance in the global economy. Although the reasoning for the expansion of the summit may not be without ulterior motives or selfless reasoning, it is a move long overdue and will surely allow decisions to represent a more diverse body.
-Sara Frodge
Source: WPR