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Met, talked... About the G20 Summit in St. Petersburg
Material posted: Publication date: 04-09-2013

Russia this year for the first time host the G20 summit is the largest forum of international cooperation, which accounts for 90% of global GDP, 80% of world trade and two-thirds of the world's population. Experts, however, say that the first year such a huge event doesn't bring breakthrough results.

Traditionally, the summits of G20 leaders take part 19 of its permanent members: Argentina, Australia, Brazil, UK, Germany, India, Indonesia, Italy, Canada, China, Mexico, Turkey, Russia, Saudi Arabia, USA, France, South Africa, Republic of Korea, Japan and the European Union, as well as invited countries — this year it's Spain, Ethiopia, Senegal, Kazakhstan, Brunei and Singapore.

In addition, the event involved a number of international organizations: the UN, the world Bank, the IMF, the financial stability Board, the Organization for economic cooperation (OECD), world trade organization (WTO) and international labour organization (ILO).

G20 works on the principle "one year — one country". To maintain continuity agreed that former and future chairs of the current to help compile the agenda of the summit. This format is called the "management Troika". The Troika is responsible for the sequence of matters dealt with in the "twenty" (continuity), accountability and transparency in the implementation of the decisions taken (accountability), and legitimacy of decisions through consultations with non-group parties (outreach). In the period of Russia's presidency in the Troika, which includes Mexico and Australia.

Born of the crisis

His appearance is obliged to the G20 summit the economic problems caused by the world financial crisis of 1997-1998. Began in the countries of South-East Asia, it is gradually swept the world. In all countries the crisis has developed is approximately the same: a massive outflow of foreign capital posed a threat of devaluation of the national currency, and stimulated speculation. In Russia, this crisis has resulted in default, and the world have demonstrated the vulnerability of the international financial system.

Existed at the period of "seven" was unable to single-handedly solve the problems. For this reason, in 1999, held a regular meeting of the elite club, during which Finance Ministers of the G7 countries and heads of Central banks decided to create a new format of meetings — the G20. These meetings began to be held annually at the level of heads of financial and economic institutions.

Over time it became apparent that the authority's main financial entities are not sufficient to solve the economic problems at the global level, so during the so-called Washington "anti-crisis" summit 2008 was proposed to increase the status of the event to the level of heads of state. After that, summit began to exist in its present form.

In the first Washington summit in 2008 the leaders of the participating countries announced the intention to reform the main institutions of the Bretton woods system — the international monetary Fund and the world Bank. In particular, the members of the "twenty" is proposed to increase the representation of developing countries in the governance of the IMF and the WB.

The leitmotif of the summit was the agreement of world leaders on the issue of counter total global protectionism and the intensification of support for developing markets. In fact, countries were invited to share the negative effects of the crisis.

Clash with reality

In fact, the proposal to reduce trade barriers was ignored by most of the participating countries. As reported in the materials of economic development and implementing anti-crisis measures in November 2008 and January 2009, the state imposed additional protectionist policies: China has introduced nineteen, India — four, Vietnam, the EU and South Korea — two.

"In this period the role of the "twenty" was very great. It explored financial, coordination and humanitarian issues. The leaders solved the problems start different forms of cooperation at the interbank level, the issues of toxic assets, "gray" banks and information disclosure. These were important questions, since part of the problems of the crisis was associated with the absence of complete information about what is happening in the States concerned as to the level of debt and financial condition. Largely successful overcoming of the crisis was due to the fact that there was an opportunity to discuss these topics at a high intergovernmental level in online mode" — says Professor of the Russian economic school Natalia Volchkova.

Different opinion of the General Director of "Center for strategic assessments and forecasts Sergey Grinyaev: "holding a "crisis summit" — the establishment of the North American attempt to shift the responsibility for the outbreak because of the number of American organizations (first of all — a number of unscrupulous ratings agencies that provided knowingly false information, a number of large banks and, of course, the fed) for the largest possible number of States. On the other hand, it looked like an attempt to divert the dialogue about the accumulated problems in the global financial system from the platform of the UN, where the positions of the US and its allies are not as strong in the bosom of the "elitist private club", where they dominate the situation."

The next forum, held in April 2009 in London, passed under the badge of struggle with the global recession, and contained a number of more specific actions. In particular, the parties agreed to increase funding for the IMF ($500 billion to $750 billion) and SDRs ($250 billion). In a communique, the G20 also includes a proposal for additional lending ($100 billion) through the IDB and the support of trade Finance of $250 billion during that summit for the first time Russia made a truly revolutionary proposal.

"Russia has been declared a number of proposals aimed at the real impact on the negative situation in the global financial system. The most significant of them — the rejection of the US dollar as the main reserve currency. And these suggestions are then looked historic and in such steps and needed the world economy, such steps waited. But just a few days before the summit the Russian party completely disavowed their own proposals. More on the G20 summit one nothing like this has happened", — said Sergey Grinyaev.

In General, analysts agree that the first summits contained the most revolutionary proposals and gave the best results. Later take the value of the G20 decisions was to decline.

"If we look at the results of the summits in Washington in 2008, London in 2009, partially in Pittsburgh in 2009, we will see that we took then were the most effective and ambitious solutions. In particular, it was agreed to increase the share capital of international financial institutions hundreds of billions of dollars. A total of a trillion dollars was actually allocated for this purpose. Gradually, when the 2008 crisis came to naught, the solution became less ambitious, they performed worse, and gradually "twenty" has grown less important to her themes like sustainable development, energy markets and corruption", — said the Deputy Director of the research Center for global management, Institute of international organizations and international cooperation, HSE mark Rakhmangulov.

Up to this time, summits were still a deliberative platform on which was dominated by the US and the UK. While reform of the IMF remained at the same level, the meeting of 2011-2012 was held under the sign of "currency wars". Europe fought with the U.S. right of sovereignty over its own economic policy. The most conspicuous fact of this struggle was the German demand about the return of the national gold reserves from banks in the US, UK and France. However, she was denied a prompt refund — gold may be returned no earlier than 2015, says Sergey Grinyaev.

The seventh summit of the leaders of "twenty" was held on 18-19 June 2012 in the Mexican city Los Cabos. Following the meeting, on an increase in reserves of IMF was sent another $450 billion that should go to overcome the consequences of the economic crisis. Basically, the discussion of the G20 in Mexico has been reduced to a green economy and food security.

In November 2012 at the meeting of Ministers of Finance and heads of Central banks of Russia took over the presidency in G20. 29 Nov 2012 Mexico formally transferred the powers of the President of the Russian Federation. Formally, the Russian presidency was launched on 1 December 2012.

An invaluable impact

If we talk about the impact of the G20 on the world economy, the opinions of the experts differ dramatically. Sergei Grinyaev believes that for all time of its existence, "twenty" have not moved beyond an Advisory body. "If, in General, to evaluate the effectiveness of the G20, he has been extremely inefficient — to achieve real change for the better in the global economy and failed. And it's not that you are unable to agree, the fact that the format of the summit is a format of monologue, not dialogue and not multilateral communication. As a rule, the US and UK are able to pursue their own policies, despite the objections of Russia and China (which, by the way, today is very dependent on monetary policy, since a significant amount of accumulated reserves in us currency)," — said Sergey Grinyaev.

"What is, "twenty", is the work of "fiddling" the international disparity that exists today. Is of great importance that the developed countries had agreed among themselves and actually lowered the budget deficit somewhere in the two times. Moreover, the G20 stabilized the debt-to-GDP in their countries is, of course, what has been achieved in the framework of the "twenty" was implemented. Today the G20 is really a very important part of the movement to "drive" on a more balanced relationship in the financial-economic sphere", — said Natalia Volchkova.

Russian experts are pinning great hopes on the forthcoming summit which will be held September 5-6 in St. Petersburg. According to experts, today's agenda excluded the "extra" theme and focused on historical topics of the summit: financial regulation, macroeconomic stabilization and dealing with the crisis. In addition, the Russian side managed to include in the agenda issues, primarily benefits Moscow.

"In Russia the agenda focused on several aspects that are important for the domestic economy of the country. This, above all, the theme of sovereign debt management. Of course, for Russia this issue is important in connection with the recent events: the creation of the Russian financial Agency, try to find a more efficient and convenient mechanisms for investing their sovereign wealth funds, Russia's policy on the labor market. The second priority topic is to stimulate, attract and search for new investments, particularly in infrastructure, this topic is in the "twenty" existed before, but Russia tried to implement it, at least to say, on what topics within this priority we should pay more attention to and something to strive for," said mark Rakhmangulov.



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