G20 Seeks Role in Post-Crisis World |
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January 29, 2010
The financial crisis forced leading economies to engage in unprecedented cooperation, but as the immediate threat to common survival eases, policy makers are searching for ways to make working together a permanent feature of global economic governance.
The financial crisis forced leading economies to engage in unprecedented cooperation, but as the immediate threat to common survival eases, policy makers are searching for ways to make working together a permanent feature of global economic governance.
One approach would involve the Group of 20 leading nations becoming more accountable to other countries, and having a voting system rather than requiring unanimity to make decisions. But that would require very large economies such as the U.S. and China to surrender some of their independence, which seems unlikely.
When Bank of England Governor Mervyn King proposed last week that the Group of 20 become the governing council for the International Monetary Fund, he was prodding forward a debate that's dragged on for decades: how to place a powerful new institution at the heart of the global economy that has broad legitimacy but real effectiveness.
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