LSE debate - What should the London Summit do?
The London School of Economics staged a debate on 3 March on what the next G20 meeting should do, bringing together diverse views from its own academic community, as well as contributions from the wider world. On a day when global stock markets falling sharply following news of further problems in the financial services sector, the mood was sombre. Most of the speakers, however, offered views on what the London Summit could realistically - and usefully - achieve.
Danny Quah, Professor of Economics at the LSE, identified four themes, including measures to boost global demand, improvements in financial markets to restore trust and confidence and a commitment to strengthen global trade and fend off protectionism. The London Summit offered a prime opportunity for emerging economies to take a more powerful role internationally, he said.
Will Hutton, Executive Vice-Chair of the Work Foundation and a columnist on The Observer newspaper, said the global nature of the crisis made it hard for individual countries to act effectively. He spoke of a 'grand bargain' between the US andChina, and called for coordinated action to get the world’s banking system back on its feet - he called it a 'shock and awe'approach. Governments should put their public balance sheets behind their banks, he added, while central banks should provide whatever liquidity was needed.
Michael Cox, LSE’s Professor of International Relations, was gloomier, saying he was concerned about the difficulties likely to be faced in reaching agreement between the US, China and the European countries - indispensable to any positive outcome. The fundamental tension between national interests and the needs of the wider global economy would have to be reconciled, particularly on protectionism. He feared that action on global warming would be deferred as countries decided the costs were too high at a time of recession.
Members of the audience also gave their views on the London Summit from a wide range of perspectives. They included Barbara Sennholz from Germany, who said the process had to be more inclusive, and must not neglect green issues.
Miguel Santillana from Peru feared that collective action on a multilateral basis could be brushed aside if leaders felt they had to respond to national issues such as unemployment.
Other questions from the audience included why Switzerland was not invited to the London Summit, and what the G20 should do about offshore financial centres.
- LSE's Professor Danny Quah on the agenda for the London Summit
Danny Quah, Professor of Economics at the LSE, identified four themes, including measures to boost global demand, improvements in financial markets to restore trust and confidence and a commitment to strengthen global trade and fend off protectionism. The London Summit offered a prime opportunity for emerging economies to take a more powerful role internationally, he said.
- Will Hutton on what the London Summit should do
Will Hutton, Executive Vice-Chair of the Work Foundation and a columnist on The Observer newspaper, said the global nature of the crisis made it hard for individual countries to act effectively. He spoke of a 'grand bargain' between the US andChina, and called for coordinated action to get the world’s banking system back on its feet - he called it a 'shock and awe'approach. Governments should put their public balance sheets behind their banks, he added, while central banks should provide whatever liquidity was needed.
- LSE’s Professor Michael Cox on the challenges facing the London Summit
Michael Cox, LSE’s Professor of International Relations, was gloomier, saying he was concerned about the difficulties likely to be faced in reaching agreement between the US, China and the European countries - indispensable to any positive outcome. The fundamental tension between national interests and the needs of the wider global economy would have to be reconciled, particularly on protectionism. He feared that action on global warming would be deferred as countries decided the costs were too high at a time of recession.
Members of the audience also gave their views on the London Summit from a wide range of perspectives. They included Barbara Sennholz from Germany, who said the process had to be more inclusive, and must not neglect green issues.
- Barbara Sennholz, a German student at the LSE debate
Miguel Santillana from Peru feared that collective action on a multilateral basis could be brushed aside if leaders felt they had to respond to national issues such as unemployment.
- Miguel Santillana, a Peruvian economist, at the LSE debate
Other questions from the audience included why Switzerland was not invited to the London Summit, and what the G20 should do about offshore financial centres.
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Posición de España
Preparación de la Cumbre del G-20 en Londres: Posición de España. In preparation for the London Summit, Spain sets out its proposals as a contribution towards the debate.