Bretton Woods II
Encyclopedia
The 2008 G-20 Washington Summit on Financial Markets and the World Economy took place on November 14–15, 2008, in Washington, D.C., United States. It achieved general agreement amongst the G-20 on how to cooperate in key areas so as to strengthen economic growth, deal with the financial crisis, and lay the foundation for reform to avoid similar crises in the future. The Summit resulted from an initiative by the French and European Union
President, Nicolas Sarkozy
, and the British Prime Minister, Gordon Brown
. In connection with the G7 finance ministers on October 11, 2008, United States President George W. Bush
stated that the next meeting of the G-20 would be important in finding solutions to the economic crisis.
Since many economists and politicians called for a new Bretton Woods system
(a monetary management which was instituted after World War II) to overhaul the world's financial structure, the meeting has sometimes been described by the media as Bretton Woods II.
, "Under this system, the U.S. is running massive current account deficits to be the source of export-led growth for other countries. To fund this deficit, central banks, particularly those on the Pacific Rim, are buying up dollars and dollar-denominated assets."
The notion of a "revived Bretton Woods system" was introduced in a 2003 paper by Dooley, Folkerts-Landau, and Garber, in which it is described as arising after the end of the Cold War, out of the choice of countries,
In 2005, Roubini
and Setser
argued that the system is unsustainable:
, currently also the President of the European Union
, said, "We must rethink the financial system from scratch, as at Bretton Woods."
On October 13, 2008, British Prime Minister Gordon Brown said world leaders must meet to agree to a new economic system. "We must have a new Bretton Woods, building a new international financial architecture for the years ahead." However, Brown's approach is quite different than the original Bretton Woods system
, emphasising the continuation of globalization
and free trade
as opposed to a return to fixed exchange rates. There have been tensions between Brown and Sarkozy, who argues that the "Anglo-Saxon" model of unrestrained markets has failed.
Italian Economics Minister Giulio Tremonti
has said that Italy will use its 2009 G7 chairmanship to push for a "New Bretton Woods." He has been critical of the U.S.'s response to the global financial crisis of 2008, and has suggested that the dollar may be superseded as the base currency of the Bretton Woods system. On 20 October 2008, Tremonti told the Italian daily Corriere della Sera
that proposals for a new Bretton Woods had been spread for many years by American political activist Lyndon LaRouche
.
The formula is "G-7 plus". In announcing the summit, US President George Bush said that the summit would bring together members of the G20 industrial nations
. The G-20 was set up to respond to the financial turmoil of 1997-99 through the development of policies that "promote international financial stability". The G-20 comprises countries considered to be systemically important, but omits over 170 governments (192 governments are members of the United Nations).
The first meeting of the G-20 leaders on financial markets and the world economy was held in Washington, D.C. on November 14–15, 2008, at the National Building Museum
. The participants were: Argentina
, Australia, Brazil
, Canada, the People's Republic of China
, France, Germany, India, Indonesia
, Italy, Japan, Mexico, Republic of Korea, Russia, Saudi Arabia
, South Africa, Turkey
, the United Kingdom, the United States of America, the European Union
(represented by France's President Nicolas Sarkozy
as President of the European Council
, as well as by José Manuel Barroso, president of the European Commission
), the Netherlands (allowed extraordinary presence), Spain (allowed extraordinary presence), the World Bank
, the International Monetary Fund
and the Financial Stability Forum
. Although Dutch Prime Minister Jan Peter Balkenende
arrived at Andrews Air Force Base on the evening of November 14, he immediately returned to the Netherlands when notified of the death of his father; the Netherlands was instead represented by State Secretary
Jan Kees de Jager
.
Spanish Prime Minister José Luis Rodríguez Zapatero
was not initially invited, but was "so desperate to secure an invitation" to the summit, that he traveled "to Asia to seek the help of President Hu Jintao
of China." Zapatero eventually extracted an invitation through "intense lobbying" of French President Nicolas Sarkozy
, who happened to hold two invitations (the second French invitation was due to the fact that France held the Presidency of the Council of the European Union
during this period).
, which comprises 19 countries and the European Union
which is represented by its two governing bodies, the European Council
and the European Commission
, as well as other nations and regional organizations invited to take part.
and French President Nicolas Sarkozy said "Bretton Woods II" should bring about "genuine, all-encompassing reform of the international financial system". The Council of the European Union sees the meeting as "tak[ing] early decisions on transparency, global standards of regulation, cross-border supervision and crisis management, to avoid conflicts of interest and to create an early warning system, so as to engender confidence among savers and investors in every country." In announcing the meeting, the spokesperson for US President George Bush said that "leaders will review progress being made to address the current financial crisis, advance a common understanding of its causes, and, in order to avoid a repetition, agree on a common set of principles for reform of the regulatory and institutional regimes for the world's financial sector". UK Prime Minister Gordon Brown, in a mid-October speech, set out several principles. These include transparency (internationally agreed accounting standards, credit insurance market standards), integrity (credit agencies, executive pay), responsibility (board member competency and expertise), sound banking practice (protecting against speculative bubbles). While addressing the G20 leaders, Chinese President
Hu Jintao
listed four priorities in reforming the international financial system: stepping up international cooperation in financial regulation; advancing reform of international financial institutions; encouraging regional financial cooperation; and improving the international currency system. Foreign ministry spokesman Qin Gang said the agreement was "comprehensive, positive and balanced". Prior to this summit, Japan
's Prime Minister, Taro Aso
, had contributed feasible action plan based on the analysis of the surplus of Japan's international balance of payments in spite of her prolonged economic slump to Wall Street Journal, and also provided his idea includes funding in the meeting. Eventually Japan provided the International Monetary Fund
100 billion U.S. dollar
to bolster the fund during the global economic and financial crisis.
reported that the summit had reached what would be the Washington declaration. The five key objectives the leaders agreed upon were:
A summary of the meeting's other salient points is presented by the White House
in the "Fact Sheet" while the full conclusions are given in the Summit Declaration.
Despite the optimism expressed by many of those present, doubts soon began to emerge about the success of the meeting and the chances of achieving all its objectives.
The 2009 G-20 management troika (U.K., Brazil, South Korea
) is charged with coordinating the task of coming up with the content and method of implementing the 47 short and mid-term objectives by March 2009.
Follow-up Summit meetings were held on April 2, 2009 in London, and in September 2009 in Pittsburgh.
Luiz Inácio Lula da Silva
welcomed the summit's decision to give a role to the emerging economic powers like Brazil, Mexico, Russia, China and India in restructuring the global economy. – Chinese President
Hu Jintao
listed four priorities in reforming the international financial system: stepping up international cooperation in financial regulation; advancing reform of international financial institutions; encouraging regional financial cooperation; and improving the international currency system. Foreign ministry spokesman Qin Gang said the agreement was "comprehensive, positive and balanced" – After the meeting, French President Nicolas Sarkozy
said: "For the first time, countries as different as those at this G20 in the United States have reached agreement on the principles, the procedures for action and on an ambitious action plan." – German Chancellor Angela Merkel
said that the stalled Doha round
of global trade talks should be pushed forward so that a basic agreement could be reached before President Bush leaves office in January. – Indian Prime Minister
Dr. Manmohan Singh welcomed the summit "for the first time there was a genuine dialogue between many of the developed countries and the emerging economies" He also added that the summit was "a clear indication that the balance of power is shifting in favour of emerging economies". – Japanese Prime Minister
Taro Aso
spoke about the impact on the poorer countries. – President of South Korea
Lee Myung-bak
said "G-20 nations must lead the way for the stalled WTO Doha Agreement to be concluded as soon as possible" And He made keynote speech at G20 summit that G20 countries make a "Stand-Still" declaration on trade and investment restrictions. – British Prime Minister Gordon Brown spoke at a press conference: "These are extraordinary times and they require extraordinary measures." "If my sense of last night is right, at a next meeting, plans for the detailed reform of international institutions will be brought forward", he said after the meeting. – President of the United States George W. Bush said "We are adapting our financial systems to the realities of the 21st century" VOA reported that after the summit Bush stated: "Our nations agreed that we must make the financial markets more transparent and accountable. Transparency is very important so that investors and regulators are able to know the truth." – President of the European Commission
José Manuel Barroso was pleased with the outcome of the summit: 'I can really say that this was a historic summit. I am very, very happy.' He added that no one had expected a miracle solution, emphasising that there was now a 'clear time schedule' for reforming the world financial system. 'This is the beginning of a process, not the end,' he explained.
drew attention to the need for real global cooperation on the ambitious agenda while the Wall Street Journal questioned whether the "regulatory crackdown on the kind of high-risk lending and investment that has led the world into a financial mess" might not backfire by causing an unwanted credit crunch. Business Week listed a number of difficult fundamental questions finance ministers would now have to resolve by the end of March. These included trade tensions and protectionism, consumer spending, housing prices, a clampdown on lending practices and how to achieve global coordination. The Hindu
's Business Line opined that "it is all very well to speak blithely of new Bretton Woods institutions but, when there is no acceptance of a world mediated by Western ideas, the move is doomed ab initio."
The panel's work is now (January 2009) being carried forward by a "Commission of Experts on Reform of the International Financial System", also led by Professor Joseph Stiglitz.
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
President, Nicolas Sarkozy
Nicolas Sarkozy
Nicolas Sarkozy is the 23rd and current President of the French Republic and ex officio Co-Prince of Andorra. He assumed the office on 16 May 2007 after defeating the Socialist Party candidate Ségolène Royal 10 days earlier....
, and the British Prime Minister, Gordon Brown
Gordon Brown
James Gordon Brown is a British Labour Party politician who was the Prime Minister of the United Kingdom and Leader of the Labour Party from 2007 until 2010. He previously served as Chancellor of the Exchequer in the Labour Government from 1997 to 2007...
. In connection with the G7 finance ministers on October 11, 2008, United States President George W. Bush
George W. Bush
George Walker Bush is an American politician who served as the 43rd President of the United States, from 2001 to 2009. Before that, he was the 46th Governor of Texas, having served from 1995 to 2000....
stated that the next meeting of the G-20 would be important in finding solutions to the economic crisis.
Since many economists and politicians called for a new Bretton Woods system
Bretton Woods system
The Bretton Woods system of monetary management established the rules for commercial and financial relations among the world's major industrial states in the mid 20th century...
(a monetary management which was instituted after World War II) to overhaul the world's financial structure, the meeting has sometimes been described by the media as Bretton Woods II.
Approaches in the early 2000s
Bretton Woods II was an informal designation for the system of currency relations which developed during the 2000s. As described by political economist Daniel DreznerDaniel Drezner
Daniel W. Drezner is currently a professor of international politics at The Fletcher School of Law and Diplomacy at Tufts University, the author of several books, the author of many Op-Ed pieces in major publications, a blogger, and a commentator.In 2005, he was denied tenure by the University of...
, "Under this system, the U.S. is running massive current account deficits to be the source of export-led growth for other countries. To fund this deficit, central banks, particularly those on the Pacific Rim, are buying up dollars and dollar-denominated assets."
The notion of a "revived Bretton Woods system" was introduced in a 2003 paper by Dooley, Folkerts-Landau, and Garber, in which it is described as arising after the end of the Cold War, out of the choice of countries,
In 2005, Roubini
Nouriel Roubini
Nouriel Roubini is an American economist. He claims to have predicted both the collapse of the United States housing market and the worldwide recession which started in 2008. He teaches at New York University's Stern School of Business and is the chairman of Roubini Global Economics, an economic...
and Setser
Brad Setser
Brad Setser is an American economist and blogger. A former staff economist at the United States Department of the Treasury, he worked at Roubini Global Economics Monitor, along with Nouriel Roubini...
argued that the system is unsustainable:
Financial crisis of 2007–
On September 26, 2008, French President Nicolas SarkozyNicolas Sarkozy
Nicolas Sarkozy is the 23rd and current President of the French Republic and ex officio Co-Prince of Andorra. He assumed the office on 16 May 2007 after defeating the Socialist Party candidate Ségolène Royal 10 days earlier....
, currently also the President of the European Union
President of the European Union
President of the European Union could be a reference to any of:* President of the European Council * President of the European Commission...
, said, "We must rethink the financial system from scratch, as at Bretton Woods."
On October 13, 2008, British Prime Minister Gordon Brown said world leaders must meet to agree to a new economic system. "We must have a new Bretton Woods, building a new international financial architecture for the years ahead." However, Brown's approach is quite different than the original Bretton Woods system
Bretton Woods system
The Bretton Woods system of monetary management established the rules for commercial and financial relations among the world's major industrial states in the mid 20th century...
, emphasising the continuation of globalization
Globalization
Globalization refers to the increasingly global relationships of culture, people and economic activity. Most often, it refers to economics: the global distribution of the production of goods and services, through reduction of barriers to international trade such as tariffs, export fees, and import...
and free trade
Free trade
Under a free trade policy, prices emerge from supply and demand, and are the sole determinant of resource allocation. 'Free' trade differs from other forms of trade policy where the allocation of goods and services among trading countries are determined by price strategies that may differ from...
as opposed to a return to fixed exchange rates. There have been tensions between Brown and Sarkozy, who argues that the "Anglo-Saxon" model of unrestrained markets has failed.
Italian Economics Minister Giulio Tremonti
Giulio Tremonti
Giulio Tremonti is an Italian politician. He served in the government of Italy as Minister of Economy and Finance under Prime Minister Silvio Berlusconi from 1994 to 1995, from 2001 to 2004, from 2005 to 2006, and from 2008 to 2011....
has said that Italy will use its 2009 G7 chairmanship to push for a "New Bretton Woods." He has been critical of the U.S.'s response to the global financial crisis of 2008, and has suggested that the dollar may be superseded as the base currency of the Bretton Woods system. On 20 October 2008, Tremonti told the Italian daily Corriere della Sera
Corriere della Sera
The Corriere della Sera is an Italian daily newspaper, published in Milan.It is among the oldest and most reputable Italian newspapers. Its main rivals are Rome's La Repubblica and Turin's La Stampa.- History :...
that proposals for a new Bretton Woods had been spread for many years by American political activist Lyndon LaRouche
Lyndon LaRouche
Lyndon Hermyle LaRouche, Jr. is an American political activist and founder of a network of political committees, parties, and publications known collectively as the LaRouche movement...
.
The Summit
G20 industrial nations
The Group of Twenty Finance Ministers and Central Bank Governors is a group of finance ministers and central bank governors from 20 major economies: 19 countries plus the European Union, which is represented by the President of the European Council and by the European Central Bank...
. The G-20 was set up to respond to the financial turmoil of 1997-99 through the development of policies that "promote international financial stability". The G-20 comprises countries considered to be systemically important, but omits over 170 governments (192 governments are members of the United Nations).
The first meeting of the G-20 leaders on financial markets and the world economy was held in Washington, D.C. on November 14–15, 2008, at the National Building Museum
National Building Museum
The National Builders Museum, in Washington, D.C., United States, is a museum of "architecture, design, engineering, construction, and urban planning"...
. The participants were: Argentina
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...
, Australia, Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
, Canada, the People's Republic of China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
, France, Germany, India, Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
, Italy, Japan, Mexico, Republic of Korea, Russia, Saudi Arabia
Saudi Arabia
The Kingdom of Saudi Arabia , commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah , is the largest state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-largest in the Arab World...
, South Africa, Turkey
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...
, the United Kingdom, the United States of America, the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
(represented by France's President Nicolas Sarkozy
Nicolas Sarkozy
Nicolas Sarkozy is the 23rd and current President of the French Republic and ex officio Co-Prince of Andorra. He assumed the office on 16 May 2007 after defeating the Socialist Party candidate Ségolène Royal 10 days earlier....
as President of the European Council
President of the European Council
The President of the European Council is a principal representative of the European Union on the world stage, and the person presiding over and driving forward the work of the European Council...
, as well as by José Manuel Barroso, president of the European Commission
European Commission
The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....
), the Netherlands (allowed extraordinary presence), Spain (allowed extraordinary presence), the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
, the International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
and the Financial Stability Forum
Financial Stability Forum
The Financial Stability Forum was a group consisting of major national financial authorities such as finance ministries, central bankers, and international financial bodies. The Forum was founded in 1999 to promote international financial stability...
. Although Dutch Prime Minister Jan Peter Balkenende
Jan Peter Balkenende
Jan Pieter "Jan Peter" Balkenende is a Dutch politician of the party Christian Democratic Appeal .He was the Prime Minister of the Netherlands from 22 July 2002 until 14 October 2010, having led four coalition governments, cabinets Balkenende I, II, III and IV, none of which served a full...
arrived at Andrews Air Force Base on the evening of November 14, he immediately returned to the Netherlands when notified of the death of his father; the Netherlands was instead represented by State Secretary
State Secretary (Netherlands)
State Secretary is the title of a junior member of the Dutch or Belgian cabinet. Other terms for the title are deputy minister, junior minister or vice-minister...
Jan Kees de Jager
Jan Kees de Jager
Jan Cornelis "Jan Kees" de Jager is a Dutch politician of the Christian Democratic Appeal . He is the Minister of Finance first in the Cabinet Balkenende IV from February 23, 2010 until October 14, 2010, and in the Cabinet Rutte since that date.He previously served as State Secretary for Finance...
.
Spanish Prime Minister José Luis Rodríguez Zapatero
José Luis Rodríguez Zapatero
José Luis Rodríguez Zapatero is a member of the Spanish Socialist Workers' Party . He was elected for two terms as Prime Minister of Spain, in the 2004 and 2008 general elections. On 2 April 2011 he announced he will not stand for re-election in 2012...
was not initially invited, but was "so desperate to secure an invitation" to the summit, that he traveled "to Asia to seek the help of President Hu Jintao
Hu Jintao
Hu Jintao is the current Paramount Leader of the People's Republic of China. He has held the titles of General Secretary of the Communist Party of China since 2002, President of the People's Republic of China since 2003, and Chairman of the Central Military Commission since 2004, succeeding Jiang...
of China." Zapatero eventually extracted an invitation through "intense lobbying" of French President Nicolas Sarkozy
Nicolas Sarkozy
Nicolas Sarkozy is the 23rd and current President of the French Republic and ex officio Co-Prince of Andorra. He assumed the office on 16 May 2007 after defeating the Socialist Party candidate Ségolène Royal 10 days earlier....
, who happened to hold two invitations (the second French invitation was due to the fact that France held the Presidency of the Council of the European Union
Presidency of the Council of the European Union
The Presidency of the Council of the European Union is the responsibility for the functioning of the Council of the European Union that rotates between the member states of the European Union every six months. The presidency is not a single president but rather the task is undertaken by a national...
during this period).
Core participants
The following participants of the Washington summit include the core members of the G-20 major economiesG-20 major economies
The Group of Twenty Finance Ministers and Central Bank Governors is a group of finance ministers and central bank governors from 20 major economies: 19 countries plus the European Union, which is represented by the President of the European Council and by the European Central Bank...
, which comprises 19 countries and the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
which is represented by its two governing bodies, the European Council
European Council
The European Council is an institution of the European Union. It comprises the heads of state or government of the EU member states, along with the President of the European Commission and the President of the European Council, currently Herman Van Rompuy...
and the European Commission
European Commission
The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....
, as well as other nations and regional organizations invited to take part.
| Core G-20 members G-20 major economies The Group of Twenty Finance Ministers and Central Bank Governors is a group of finance ministers and central bank governors from 20 major economies: 19 countries plus the European Union, which is represented by the President of the European Council and by the European Central Bank... Host nation and leader are indicated in bold text. |
|||
| Member | Represented by | Title | |
|---|---|---|---|
 |
Argentina Argentina Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires... |
Cristina Fernández de Kirchner Cristina Fernández de Kirchner Cristina Elisabet Fernández de Kirchner , commonly known as Cristina Fernández or Cristina Kirchner is the 55th and current President of Argentina and the widow of former President Néstor Kirchner. She is Argentina's first elected female president, and the second female president ever to serve... |
President President of Argentina The President of the Argentine Nation , usually known as the President of Argentina, is the head of state of Argentina. Under the national Constitution, the President is also the chief executive of the federal government and Commander-in-Chief of the armed forces.Through Argentine history, the... |
 |
Australia | Kevin Rudd Kevin Rudd Kevin Michael Rudd is an Australian politician who was the 26th Prime Minister of Australia from 2007 to 2010. He has been Minister for Foreign Affairs since 2010... |
Prime Minister Prime Minister of Australia The Prime Minister of the Commonwealth of Australia is the highest minister of the Crown, leader of the Cabinet and Head of Her Majesty's Australian Government, holding office on commission from the Governor-General of Australia. The office of Prime Minister is, in practice, the most powerful... |
 |
Brazil Brazil Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people... |
Luiz Inácio Lula da Silva Luiz Inácio Lula da Silva Luiz Inácio Lula da Silva , known popularly as Lula, served as the 35th President of Brazil from 2003 to 2010.A founding member of the Workers' Party , he ran for President three times unsuccessfully, first in the 1989 election. Lula achieved victory in the 2002 election, and was inaugurated as... |
President President of Brazil The president of Brazil is both the head of state and head of government of the Federative Republic of Brazil. The president leads the executive branch of the federal government and is the commander-in-chief of the Brazilian Armed Forces... |
 |
Canada | Stephen Harper Stephen Harper Stephen Joseph Harper is the 22nd and current Prime Minister of Canada and leader of the Conservative Party. Harper became prime minister when his party formed a minority government after the 2006 federal election... |
Prime Minister Prime Minister of Canada The Prime Minister of Canada is the primary minister of the Crown, chairman of the Cabinet, and thus head of government for Canada, charged with advising the Canadian monarch or viceroy on the exercise of the executive powers vested in them by the constitution... |
 |
China People's Republic of China China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres... |
Hu Jintao Hu Jintao Hu Jintao is the current Paramount Leader of the People's Republic of China. He has held the titles of General Secretary of the Communist Party of China since 2002, President of the People's Republic of China since 2003, and Chairman of the Central Military Commission since 2004, succeeding Jiang... |
President President of the People's Republic of China The President of the People's Republic of China is a ceremonial office and a part of State organs under the National People's Congress and it is the head of state of the People's Republic of China . The office was created by the 1982 Constitution... |
 |
France | Nicolas Sarkozy Nicolas Sarkozy Nicolas Sarkozy is the 23rd and current President of the French Republic and ex officio Co-Prince of Andorra. He assumed the office on 16 May 2007 after defeating the Socialist Party candidate Ségolène Royal 10 days earlier.... |
President |
 |
Germany | Angela Merkel Angela Merkel Angela Dorothea Merkel is the current Chancellor of Germany . Merkel, elected to the Bundestag from Mecklenburg-Vorpommern, has been the chairwoman of the Christian Democratic Union since 2000, and chairwoman of the CDU-CSU parliamentary coalition from 2002 to 2005.From 2005 to 2009 she led a... |
Chancellor |
 |
India | Manmohan Singh Manmohan Singh Manmohan Singh is the 13th and current Prime Minister of India. He is the only Prime Minister since Jawaharlal Nehru to return to power after completing a full five-year term. A Sikh, he is the first non-Hindu to occupy the office. Singh is also the 7th Prime Minister belonging to the Indian... |
Prime Minister Prime Minister of India The Prime Minister of India , as addressed to in the Constitution of India — Prime Minister for the Union, is the chief of government, head of the Council of Ministers and the leader of the majority party in parliament... |
 |
Indonesia Indonesia Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an... |
Susilo Bambang Yudhoyono Susilo Bambang Yudhoyono Susilo Bambang Yudhoyono AC , is an Indonesian politician and retired Army general officer who has been President of Indonesia since 2004.... |
President President of Indonesia The President of the Republic of Indonesia is the head of state and the head of government of the Republic of Indonesia.The first president was Sukarno and the current president is Susilo Bambang Yudhoyono.- Sukarno era :... |
 |
Italy | Silvio Berlusconi Silvio Berlusconi Silvio Berlusconi , also known as Il Cavaliere – from knighthood to the Order of Merit for Labour which he received in 1977 – is an Italian politician and businessman who served three terms as Prime Minister of Italy, from 1994 to 1995, 2001 to 2006, and 2008 to 2011. Berlusconi is also the... |
Prime Minister Prime minister of Italy The Prime Minister of Italy is the head of government of the Italian Republic... |
 |
Japan | Taro Aso Taro Aso was the 92nd Prime Minister of Japan serving from September 2008 to September 2009, and was defeated in the August 2009 election.He has served in the House of Representatives since 1979. He was Minister for Foreign Affairs from 2005 to 2007, and was Secretary-General of the LDP briefly in 2007 and... |
Prime Minister Prime Minister of Japan The is the head of government of Japan. He is appointed by the Emperor of Japan after being designated by the Diet from among its members, and must enjoy the confidence of the House of Representatives to remain in office... |
 |
Mexico | Felipe Calderón Felipe Calderón Felipe de Jesús Calderón Hinojosa is the current President of Mexico. He assumed office on December 1, 2006, and was elected for a single six-year term through 2012... |
President President of Mexico The President of the United Mexican States is the head of state and government of Mexico. Under the Constitution, the president is also the Supreme Commander of the Mexican armed forces... |
 |
Russia | Dmitry Medvedev Dmitry Medvedev Dmitry Anatolyevich Medvedev is the third President of the Russian Federation.Born to a family of academics, Medvedev graduated from the Law Department of Leningrad State University in 1987. He defended his dissertation in 1990 and worked as a docent at his alma mater, now renamed to Saint... |
President |
 |
Saudi Arabia Saudi Arabia The Kingdom of Saudi Arabia , commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah , is the largest state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-largest in the Arab World... |
Abdullah bin Abdul Aziz Abdullah of Saudi Arabia Abdullah bin Abdul-Aziz Al Saud, Custodian of the Two Holy Mosques, is the King of Saudi Arabia. He succeeded to the throne on 1 August 2005 upon the death of his half-brother, King Fahd. When Crown Prince, he governed Saudi Arabia as regent from 1998 to 2005... |
King |
 |
South Africa | Kgalema Motlanthe | President President of South Africa The President of the Republic of South Africa is the head of state and head of government under South Africa's Constitution. From 1961 to 1994, the head of state was called the State President.... |
 |
South Korea South Korea The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south... |
Lee Myung-bak Lee Myung-bak Lee Myung-bak is the President of South Korea. Prior to his presidency, he was the CEO of Hyundai Engineering and Construction and the mayor of Seoul. He is married to Kim Yoon-ok and has three daughters and one son. His older brother is Lee Sang-deuk, a South Korean politician. He attends the... |
President President of South Korea The President of the Republic of Korea is, according to the Constitution of the Republic of Korea, chief executive of the government, commander-in-chief of the armed forces, and the head of state of the Republic of Korea... |
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Turkey Turkey Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe... |
Recep Tayyip Erdoğan Recep Tayyip Erdogan Recep Tayyip Erdoğan has been Prime Minister of Turkey since 2003 and is chairman of the ruling Justice and Development Party , which holds a majority of the seats in the Grand National Assembly of Turkey. Erdoğan served as Mayor of Istanbul from 1994 to 1998. He graduated in 1981 from Marmara... |
Prime Minister Prime Minister of Turkey The Prime Minister of the Turkey is the head of government in Turkish politics. The prime minister is the leader of a political coalition in the Turkish parliament and the leader of the cabinet.... |
| United Kingdom | Gordon Brown Gordon Brown James Gordon Brown is a British Labour Party politician who was the Prime Minister of the United Kingdom and Leader of the Labour Party from 2007 until 2010. He previously served as Chancellor of the Exchequer in the Labour Government from 1997 to 2007... |
Prime Minister Prime Minister of the United Kingdom The Prime Minister of the United Kingdom of Great Britain and Northern Ireland is the Head of Her Majesty's Government in the United Kingdom. The Prime Minister and Cabinet are collectively accountable for their policies and actions to the Sovereign, to Parliament, to their political party and... |
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United States | George W. Bush George W. Bush George Walker Bush is an American politician who served as the 43rd President of the United States, from 2001 to 2009. Before that, he was the 46th Governor of Texas, having served from 1995 to 2000.... |
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European Commission European Commission The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union.... |
Jose Manuel Barroso | President President of the European Commission The President of the European Commission is the head of the European Commission ― the executive branch of the :European Union ― the most powerful officeholder in the EU. The President is responsible for allocating portfolios to members of the Commission and can reshuffle or dismiss them if needed... |
 European CouncilEuropean Council The European Council is an institution of the European Union. It comprises the heads of state or government of the EU member states, along with the President of the European Commission and the President of the European Council, currently Herman Van Rompuy... (Netherlands Netherlands The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders... ) |
Jan Peter Balkenende Jan Peter Balkenende Jan Pieter "Jan Peter" Balkenende is a Dutch politician of the party Christian Democratic Appeal .He was the Prime Minister of the Netherlands from 22 July 2002 until 14 October 2010, having led four coalition governments, cabinets Balkenende I, II, III and IV, none of which served a full... |
President President A president is a leader of an organization, company, trade union, university, or country.Etymologically, a president is one who presides, who sits in leadership... |
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 European CouncilEuropean Council The European Council is an institution of the European Union. It comprises the heads of state or government of the EU member states, along with the President of the European Commission and the President of the European Council, currently Herman Van Rompuy... (Spain Spain Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula... ) |
José Luis Rodríguez Zapatero José Luis Rodríguez Zapatero José Luis Rodríguez Zapatero is a member of the Spanish Socialist Workers' Party . He was elected for two terms as Prime Minister of Spain, in the 2004 and 2008 general elections. On 2 April 2011 he announced he will not stand for re-election in 2012... |
President President A president is a leader of an organization, company, trade union, university, or country.Etymologically, a president is one who presides, who sits in leadership... |
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Suggestions
German Chancellor Angela MerkelAngela Merkel
Angela Dorothea Merkel is the current Chancellor of Germany . Merkel, elected to the Bundestag from Mecklenburg-Vorpommern, has been the chairwoman of the Christian Democratic Union since 2000, and chairwoman of the CDU-CSU parliamentary coalition from 2002 to 2005.From 2005 to 2009 she led a...
and French President Nicolas Sarkozy said "Bretton Woods II" should bring about "genuine, all-encompassing reform of the international financial system". The Council of the European Union sees the meeting as "tak[ing] early decisions on transparency, global standards of regulation, cross-border supervision and crisis management, to avoid conflicts of interest and to create an early warning system, so as to engender confidence among savers and investors in every country." In announcing the meeting, the spokesperson for US President George Bush said that "leaders will review progress being made to address the current financial crisis, advance a common understanding of its causes, and, in order to avoid a repetition, agree on a common set of principles for reform of the regulatory and institutional regimes for the world's financial sector". UK Prime Minister Gordon Brown, in a mid-October speech, set out several principles. These include transparency (internationally agreed accounting standards, credit insurance market standards), integrity (credit agencies, executive pay), responsibility (board member competency and expertise), sound banking practice (protecting against speculative bubbles). While addressing the G20 leaders, Chinese President
President of the People's Republic of China
The President of the People's Republic of China is a ceremonial office and a part of State organs under the National People's Congress and it is the head of state of the People's Republic of China . The office was created by the 1982 Constitution...
Hu Jintao
Hu Jintao
Hu Jintao is the current Paramount Leader of the People's Republic of China. He has held the titles of General Secretary of the Communist Party of China since 2002, President of the People's Republic of China since 2003, and Chairman of the Central Military Commission since 2004, succeeding Jiang...
listed four priorities in reforming the international financial system: stepping up international cooperation in financial regulation; advancing reform of international financial institutions; encouraging regional financial cooperation; and improving the international currency system. Foreign ministry spokesman Qin Gang said the agreement was "comprehensive, positive and balanced". Prior to this summit, Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
's Prime Minister, Taro Aso
Taro Aso
was the 92nd Prime Minister of Japan serving from September 2008 to September 2009, and was defeated in the August 2009 election.He has served in the House of Representatives since 1979. He was Minister for Foreign Affairs from 2005 to 2007, and was Secretary-General of the LDP briefly in 2007 and...
, had contributed feasible action plan based on the analysis of the surplus of Japan's international balance of payments in spite of her prolonged economic slump to Wall Street Journal, and also provided his idea includes funding in the meeting. Eventually Japan provided the International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
100 billion U.S. dollar
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
to bolster the fund during the global economic and financial crisis.
Key achievements
The White HouseWhite House
The White House is the official residence and principal workplace of the president of the United States. Located at 1600 Pennsylvania Avenue NW in Washington, D.C., the house was designed by Irish-born James Hoban, and built between 1792 and 1800 of white-painted Aquia sandstone in the Neoclassical...
reported that the summit had reached what would be the Washington declaration. The five key objectives the leaders agreed upon were:
- reached a common understanding of the root causes of the global crisis;
- reviewed actions countries had taken and would take in the future to address the immediate crisis and strengthen growth;
- agreed on common principles for reforming their financial markets;
- launched an action plan to implement those principles and asked ministers to develop further specific recommendations that would be reviewed by leaders at a subsequent summit; and
- reaffirmed their commitment to free market principles.
A summary of the meeting's other salient points is presented by the White House
White House
The White House is the official residence and principal workplace of the president of the United States. Located at 1600 Pennsylvania Avenue NW in Washington, D.C., the house was designed by Irish-born James Hoban, and built between 1792 and 1800 of white-painted Aquia sandstone in the Neoclassical...
in the "Fact Sheet" while the full conclusions are given in the Summit Declaration.
Despite the optimism expressed by many of those present, doubts soon began to emerge about the success of the meeting and the chances of achieving all its objectives.
The 2009 G-20 management troika (U.K., Brazil, South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
) is charged with coordinating the task of coming up with the content and method of implementing the 47 short and mid-term objectives by March 2009.
Follow-up Summit meetings were held on April 2, 2009 in London, and in September 2009 in Pittsburgh.
From participating delegations
– Brazilian PresidentPresident of Brazil
The president of Brazil is both the head of state and head of government of the Federative Republic of Brazil. The president leads the executive branch of the federal government and is the commander-in-chief of the Brazilian Armed Forces...
Luiz Inácio Lula da Silva
Luiz Inácio Lula da Silva
Luiz Inácio Lula da Silva , known popularly as Lula, served as the 35th President of Brazil from 2003 to 2010.A founding member of the Workers' Party , he ran for President three times unsuccessfully, first in the 1989 election. Lula achieved victory in the 2002 election, and was inaugurated as...
welcomed the summit's decision to give a role to the emerging economic powers like Brazil, Mexico, Russia, China and India in restructuring the global economy. – Chinese President
President of the People's Republic of China
The President of the People's Republic of China is a ceremonial office and a part of State organs under the National People's Congress and it is the head of state of the People's Republic of China . The office was created by the 1982 Constitution...
Hu Jintao
Hu Jintao
Hu Jintao is the current Paramount Leader of the People's Republic of China. He has held the titles of General Secretary of the Communist Party of China since 2002, President of the People's Republic of China since 2003, and Chairman of the Central Military Commission since 2004, succeeding Jiang...
listed four priorities in reforming the international financial system: stepping up international cooperation in financial regulation; advancing reform of international financial institutions; encouraging regional financial cooperation; and improving the international currency system. Foreign ministry spokesman Qin Gang said the agreement was "comprehensive, positive and balanced" – After the meeting, French President Nicolas Sarkozy
Nicolas Sarkozy
Nicolas Sarkozy is the 23rd and current President of the French Republic and ex officio Co-Prince of Andorra. He assumed the office on 16 May 2007 after defeating the Socialist Party candidate Ségolène Royal 10 days earlier....
said: "For the first time, countries as different as those at this G20 in the United States have reached agreement on the principles, the procedures for action and on an ambitious action plan." – German Chancellor Angela Merkel
Angela Merkel
Angela Dorothea Merkel is the current Chancellor of Germany . Merkel, elected to the Bundestag from Mecklenburg-Vorpommern, has been the chairwoman of the Christian Democratic Union since 2000, and chairwoman of the CDU-CSU parliamentary coalition from 2002 to 2005.From 2005 to 2009 she led a...
said that the stalled Doha round
Doha round
The Doha Development Round or Doha Development Agenda is the current trade-negotiation round of the World Trade Organization which commenced in November 2001. Its objective is to lower trade barriers around the world, which will help facilitate the increase of global trade...
of global trade talks should be pushed forward so that a basic agreement could be reached before President Bush leaves office in January. – Indian Prime Minister
Prime Minister of India
The Prime Minister of India , as addressed to in the Constitution of India — Prime Minister for the Union, is the chief of government, head of the Council of Ministers and the leader of the majority party in parliament...
Dr. Manmohan Singh welcomed the summit "for the first time there was a genuine dialogue between many of the developed countries and the emerging economies" He also added that the summit was "a clear indication that the balance of power is shifting in favour of emerging economies". – Japanese Prime Minister
Prime Minister of Japan
The is the head of government of Japan. He is appointed by the Emperor of Japan after being designated by the Diet from among its members, and must enjoy the confidence of the House of Representatives to remain in office...
Taro Aso
Taro Aso
was the 92nd Prime Minister of Japan serving from September 2008 to September 2009, and was defeated in the August 2009 election.He has served in the House of Representatives since 1979. He was Minister for Foreign Affairs from 2005 to 2007, and was Secretary-General of the LDP briefly in 2007 and...
spoke about the impact on the poorer countries. – President of South Korea
President of South Korea
The President of the Republic of Korea is, according to the Constitution of the Republic of Korea, chief executive of the government, commander-in-chief of the armed forces, and the head of state of the Republic of Korea...
Lee Myung-bak
Lee Myung-bak
Lee Myung-bak is the President of South Korea. Prior to his presidency, he was the CEO of Hyundai Engineering and Construction and the mayor of Seoul. He is married to Kim Yoon-ok and has three daughters and one son. His older brother is Lee Sang-deuk, a South Korean politician. He attends the...
said "G-20 nations must lead the way for the stalled WTO Doha Agreement to be concluded as soon as possible" And He made keynote speech at G20 summit that G20 countries make a "Stand-Still" declaration on trade and investment restrictions. – British Prime Minister Gordon Brown spoke at a press conference: "These are extraordinary times and they require extraordinary measures." "If my sense of last night is right, at a next meeting, plans for the detailed reform of international institutions will be brought forward", he said after the meeting. – President of the United States George W. Bush said "We are adapting our financial systems to the realities of the 21st century" VOA reported that after the summit Bush stated: "Our nations agreed that we must make the financial markets more transparent and accountable. Transparency is very important so that investors and regulators are able to know the truth." – President of the European Commission
President of the European Commission
The President of the European Commission is the head of the European Commission ― the executive branch of the :European Union ― the most powerful officeholder in the EU. The President is responsible for allocating portfolios to members of the Commission and can reshuffle or dismiss them if needed...
José Manuel Barroso was pleased with the outcome of the summit: 'I can really say that this was a historic summit. I am very, very happy.' He added that no one had expected a miracle solution, emphasising that there was now a 'clear time schedule' for reforming the world financial system. 'This is the beginning of a process, not the end,' he explained.
From the press
The financial press generally welcomed the results of the summit but the Financial TimesFinancial Times
The Financial Times is an international business newspaper. It is a morning daily newspaper published in London and printed in 24 cities around the world. Its primary rival is the Wall Street Journal, published in New York City....
drew attention to the need for real global cooperation on the ambitious agenda while the Wall Street Journal questioned whether the "regulatory crackdown on the kind of high-risk lending and investment that has led the world into a financial mess" might not backfire by causing an unwanted credit crunch. Business Week listed a number of difficult fundamental questions finance ministers would now have to resolve by the end of March. These included trade tensions and protectionism, consumer spending, housing prices, a clampdown on lending practices and how to achieve global coordination. The Hindu
The Hindu
The Hindu is an Indian English-language daily newspaper founded and continuously published in Chennai since 1878. According to the Audit Bureau of Circulations, it has a circulation of 1.46 million copies as of December 2009. The enterprise employed over 1,600 workers and gross income reached $40...
's Business Line opined that "it is all very well to speak blithely of new Bretton Woods institutions but, when there is no acceptance of a world mediated by Western ideas, the move is doomed ab initio."
Similar efforts
There is a UN "Interactive Panel on the Global Financial Crisis", set up by the UN General Assembly. It held its first meeting in New York on 30 October 2008, led by Professor Joseph Stiglitz. It is covering similar ground as the body described above, but involving a broader range of countries. It lobbies for an agreement involving all members of the UN.The panel's work is now (January 2009) being carried forward by a "Commission of Experts on Reform of the International Financial System", also led by Professor Joseph Stiglitz.
See also
- List of G-20 summits
- Global financial crisis of 2008–2009
- Foreign exchange reservesForeign exchange reservesForeign-exchange reserves in a strict sense are 'only' the foreign currency deposits and bonds held by central banks and monetary authorities. However, the term in popular usage commonly includes foreign exchange and gold, Special Drawing Rights and International Monetary Fund reserve positions...
- Exchange rate regimeExchange rate regimeThe exchange-rate regime is the way a country manages its currency in relation to other currencies and the foreign exchange market. It is closely related to monetary policy and the two are generally dependent on many of the same factors....
- EurodadEurodadEurodad is a network of 58 non-governmental organisations from 19 European countries. Eurodad and its members make up a network, this network researches and works on issues that are related to debt, development finance and poverty reduction.Recently this network has focussed on issues such as...
External links
- G20 Information Centre
- Graphic: G20 is not simply the 20 largest economies
- Eurodad: Bretton Woods II conference FAQs
- Eurodad: IMF back in business as Bretton Woods II conference announced
- UN Interactive Panel on the Global Financial Crisis
- UN Commission of Experts on Reform of the International Financial System
- US dollar slide to continue after G20 meeting
- G20 summit: US and Europe paper over divisions
