Friday, April 03, 2009

G20 Summit 2009 and What Next for Asia

It is perhaps too early to judge the success or failure of G20 Summit 2009. Some political leaders and even some stock markets around the world are in a jubilant mood and they feel that something significant has been achieved with the summit. On the other hand, some people may feel that no significant progress has happened towards solving the problem of global economic recession. If you ask for my view then I have to say that I am one of those persons who felt that the summit was not enough to restore the confidence that most people needed. However, I also believe that there is no quick solution to this problem and the leaders have shown some kind of political will in the summit.

To give you the main agreements of the G20 Summit 2009, I am quoting from a repot of BBC:

Leaders of the world's largest economies have reached an agreement to tackle the global financial crisis with measures worth $1.1 trillion (£681bn).

To help countries with troubled economies, the resources available to the International Monetary Fund (IMF) will be tripled to $750bn.

There will also be sanctions against secretive tax havens and tougher global financial regulation.

And the G20 has committed about $250bn to boost global trade.

Japan's Prime Minister Taro Aso Chinese leader, Hu Jintao had a meeting and they agreed that they should work together to help the rest of Asia and also themselves during the time of economic crisis. Taro Aso stated that if any kind of recovery from the current crises had to take place then at first, the problem of Asia should be resolved. Both China and Japan are suffering at this moment because of falling demand of consumer goods in Europe and America. These two countries need to address the issue of falling economic growth which is causing job loss and unemployment in the two countries.

India was an other participants from Asia and despite the fact that general elections are going to take place in the country within a few days, Indian government to the summit very seriously and the Prime Minister himself was present in the summit. It is not yet clear what India could achieve in the summit or what Indian economy will get from the $1 trillion.