While the G20 has its origins in the wake of the Asian financial crisis in the late 1990s, it was the financial crisis of 2008 that gave the grouping its true stature, as a vehicle for concerted global action to address the massive impact of the collapse in financial markets. It also reflected the unavoidable reality that global economic might was shifting to Asia, away from Europe and its low-growth economies.
Since then, however, the group has struggled to achieve relevance. Its proposed aim for a 2% global growth target achieved through both stimulus and effective structural reform is laudable, but unlikely to lead to any direct real-world outcomes, particularly as the eurozone remains mired in an extended, and highly damaging, period of stagnation exacerbated by Germany’s refusal to countenance more monetary stimulus and the essential manufactured nature of the euro.
Of greater importance will be any momentum the meeting can impart to the international challenge of eliminating tax havens and curbing the capacity of the world’s biggest companies — from tech giants like Apple, Google and Amazon to media companies like 21st Century Fox and mining giants like Glencore — to profit shift to low-tax jurisdictions. Treasurer Joe Hockey has talked tough on tax, but we’re yet to see the evidence that the government is prepared to take on global giants in a concerted campaign to end what is called “tax avoidance” but is better described as legalised forms of tax evasion.
Beyond that, the G20 is unlikely to yield anything of concrete benefit for Australians. Even so, gathering the leaders of the world’s biggest economies in one place is always good, as it provides opportunities for the kind of personal dialogue that might be damned as a “talkfest”, but which never hurt international relations, especially at a time of renewed conflict and tension.
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Given the vested interests floating around the G20, the less achieved the better for us all methinks! The words they speak are devoid of humanity or anything of a spiritual nature. We don’t talk in terms of people any more but units. This is nutty – I am not a religious person but even I feel we are in a spiritual battle for the future of humanity as we know it. If you don’t believe me, have you been to an airport lately. Won’t be a human in sight in three years.
So G20 Gee shucks!
Economics is called the dismal doctrine (science it ain’t) because the one thing that it refuses to measure is humans, they’re just too awkward for their nice clean equations.
All this “control” over economics and employment …… so the GFC was deliberate?
….. Meanwhile there is the legislative effect on emissions?
There are some who realise not only that there’s something to be gained from the social sciences, but also understand that to do this one needs first to be trained in challenging areas such as philosophy of science [the social variety included] have higher level language skills, and [often overlooked?] the attribute of being prepared to examine our own personal biases as well.
Unfortunately this isn’t a commonly encountered combination.
Too true.