G-20 Summit 2011
By: Hope Wilkos, Writer/Blogger
Photos: Getty Images
The recent G-20 Summit held in Cannes last week brought forth an action plan for growth and jobs.
A set of policies was developed to reinvigorate global economic recovery. It is called the “Cannes Action Plan for Jobs and Growth”. The largest component to this plan is more international policy cooperation.
As we are all aware, the economy has been trying to recover from a steep downturn and the financial crisis in Europe has played a large part in the problem. Progress to rebalance global demand has also stalled. Emerging markets must make an effort to bolster domestic demand and help sustain global growth.
Here are the commitments decided upon:
The United States will implement a package of tax reforms and targeted jobs and investment measures to support the U.S. recovery, consistent with a credible plan for achieving fiscal sustainability in the medium-term;
Japan will quickly implement reconstruction measures; and
Australia, Brazil, Canada, China, Germany, Korea, and Indonesia, where public finance are relatively strong, will let automatic stabilizers work and will take additional discretionary fiscal measures if economic conditions require it.
Other important factors to make this plan successful will be open trade, structural reforms to boost growth and enhance job creation, global financial reform and actions to promote development.
China must try to increase the exchange rate flexibility.
Saudi Arabia must remain committed to stabilizing oil markets.
All G-20 members must resist trade protectionism.
Countries with large current account surpluses commit to boost domestic sources of growth by implementing measures to increase growth of consumption and investment as a share of Gross Domestic Product.
If this plan can be fully implemented and strategically carried out, we will be on the way to a stronger and more sustainable growth path globally.
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