A break from tradition
London G20 summit belays global power shift
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Graphic by Caroline Fox
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Economic summits used to be similar to a nest of baby birds, each with a squawking, open beak clamoring for its mother’s nourishment. When there was only one superpower, this seemed like a perfectly reasonable setup — only one country could muscle through its own agenda and the agendas of hangers-on.
Now this model has been turned upside down and the nest has been dashed from the tree. The baby birds are scurrying in the dirt, fighting with one another for scraps. Mama bird is still smarting from the fall, trying to rally the indignant chicks.
The meeting of the G20 this week, an international summit built upon encouraging greater cooperation between the world’s largest economies, has been met with great expectations and populist fury.
The United States, pushing for the implementation of stimulus packages similar to its own, has been meet coldly by nearly every member of the G20.
Europe has been the most vocal opponent of the plan, stating that its own governmental social welfare programs eliminate the need for further spending. Angela Merkel, chancellor of Germany, put her foot down on a so-called “global new deal” that would have injected $2 trillion into international economies.
“I will not let anyone tell me that we must spend more money,” Merkel said, moving away from her previous role as a silent wild card in the international community.
Mirek Topolanek, Czech Prime Minister and current head of the European Union, was more blunt, stating President Barack Obama’s stimulus package was “the road to hell.”
China has also been a staunch opponent, realizing that with its massive cash reserves and debt holdings, it can now essentially do whatever it wants. The governor of China’s central bank has proposed the elimination of the American dollar as the world’s reserve currency. China has also demanded that it be granted greater oversight of the International Monetary Fund if its much-needed contributions are to be granted.
Despite Obama’s overwhelming international popularity, there’s little that a charismatic head of state can do when the rest of the world smells a chance not only to snag a bigger piece of the pie, but also to bake an entirely new one.
As defeatist as it may sound, it’s time to pass the baton. The financial crisis has proven to be the final straw. The United States has lost its international credibility and countries will now follow its lead when they see fit, not because they feel forced to.
On issues like the IMF, to which America is proposing an increase of $500 billion in aid, there is no longer a knee-jerk reaction from the international community. The IMF has long been a branch of American foreign policy and has suffered because of it. The fund has already done a solid job reacting to the economic crisis by making it easier for countries to borrow and increasing the amount they can take, but the inclusion of other voices in the back rooms could lead to a more reactive, integrated organization.
It’s apparent the Obama administration seeks to improve international relations. Both its outreach to Iran and calls for better inclusion of China on the global stage serve as evidence. But this policy is tainted by policies such as the proposed “Buy American” clause and protectionist pleas from Congress, both of which are ultimately self-defeating.
Though there’s no joy in seeing one’s prominence on the world stage, decrease the actions a nation takes when it happens are critical. Lashing out at rising nations and retreating will do nothing to solve the current crisis. The United States is still the most powerful country in the world, but not to the degree that unilateral action is a possibility.
It’s time the mama bird realizes the chicks have grown up — and when they start to assert themselves, a good parent never shuns its offspring, but helps them along the way.
Now this model has been turned upside down and the nest has been dashed from the tree. The baby birds are scurrying in the dirt, fighting with one another for scraps. Mama bird is still smarting from the fall, trying to rally the indignant chicks.
The meeting of the G20 this week, an international summit built upon encouraging greater cooperation between the world’s largest economies, has been met with great expectations and populist fury.
The United States, pushing for the implementation of stimulus packages similar to its own, has been meet coldly by nearly every member of the G20.
Europe has been the most vocal opponent of the plan, stating that its own governmental social welfare programs eliminate the need for further spending. Angela Merkel, chancellor of Germany, put her foot down on a so-called “global new deal” that would have injected $2 trillion into international economies.
“I will not let anyone tell me that we must spend more money,” Merkel said, moving away from her previous role as a silent wild card in the international community.
Mirek Topolanek, Czech Prime Minister and current head of the European Union, was more blunt, stating President Barack Obama’s stimulus package was “the road to hell.”
China has also been a staunch opponent, realizing that with its massive cash reserves and debt holdings, it can now essentially do whatever it wants. The governor of China’s central bank has proposed the elimination of the American dollar as the world’s reserve currency. China has also demanded that it be granted greater oversight of the International Monetary Fund if its much-needed contributions are to be granted.
Despite Obama’s overwhelming international popularity, there’s little that a charismatic head of state can do when the rest of the world smells a chance not only to snag a bigger piece of the pie, but also to bake an entirely new one.
As defeatist as it may sound, it’s time to pass the baton. The financial crisis has proven to be the final straw. The United States has lost its international credibility and countries will now follow its lead when they see fit, not because they feel forced to.
On issues like the IMF, to which America is proposing an increase of $500 billion in aid, there is no longer a knee-jerk reaction from the international community. The IMF has long been a branch of American foreign policy and has suffered because of it. The fund has already done a solid job reacting to the economic crisis by making it easier for countries to borrow and increasing the amount they can take, but the inclusion of other voices in the back rooms could lead to a more reactive, integrated organization.
It’s apparent the Obama administration seeks to improve international relations. Both its outreach to Iran and calls for better inclusion of China on the global stage serve as evidence. But this policy is tainted by policies such as the proposed “Buy American” clause and protectionist pleas from Congress, both of which are ultimately self-defeating.
Though there’s no joy in seeing one’s prominence on the world stage, decrease the actions a nation takes when it happens are critical. Lashing out at rising nations and retreating will do nothing to solve the current crisis. The United States is still the most powerful country in the world, but not to the degree that unilateral action is a possibility.
It’s time the mama bird realizes the chicks have grown up — and when they start to assert themselves, a good parent never shuns its offspring, but helps them along the way.
Updated March 31, 2009
