Posted by: mulrickillion | October 30, 2011

An Action Plan for the G-20

By C. Fred Bergsten, Peterson Institute for International Economics

Testimony before the hearing "The G-20 and Global Economic and Financial Risks," Committee on Banking, Housing, and Urban Affairs Subcommittee on Security and International Trade and Finance, United States Senate

October 20, 2011

[Synopsis]:

The United States has a massive national interest in successful revival of the world economy and must exercise a new style of leadership to catalyze action in that direction by the G-20 at Cannes in early November. There are three separate though related problems: the possibility of renewed recession in the three large high-income areas (United States, European Union, and Japan), the continued fragility of the global financial system, and most immediately the threat of renewed crisis in Europe. The G-20 should focus on three tasks: adopting a plan for restoring economic growth throughout the world, as it did at London in April 2009, mainly led by the emerging market economies but also with important contributions by the stronger Europeans (notably Germany) and the United States; endorsing a comprehensive action plan for the European crisis, which includes renewed growth as well as new financial engineering; and implementing on schedule the minimum bank capital and liquidity requirements under Basel III. The stakes are so high that the United States must place the highest priority on utilizing the G-20 effectively to complete these tasks over the coming months and years.

>> Read full congressional testimony

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