Saturday, September 26, 2009

Cooperation We've Never Seen Before

From the NYTimes: “We have achieved a level of tangible, global economic cooperation that we’ve never seen before,” President Obama said shortly after the summit meeting of 20 leading economies concluded here. “Our financial system will be far different and more secure than the one that failed so dramatically last year.”
Just as he did to make progress on ending nuclear weapons, President Obama got this to work by holding the U.S. to the same standards as other nations. "The ideas are not new, and there is no enforcement mechanism to penalize countries if they stick to their old habits. But for the first time ever, each country agreed to submit its policies to a “peer review” from the other governments as well as to monitoring by the International Monetary Fund.
That in itself would be a big change, given how prickly national leaders have often been toward outside criticism of their policies. American officials, who pushed for the plan during weeks of negotiations before the summit meeting, argued that governments were so shocked by the economic crisis that they were willing to rethink what was in their self-interest.
“I’m quite impressed,” said Eswar S. Prasad, an economist at Cornell University who had initially been skeptical about the proposed “framework” for stable growth. “A commitment by the U.S. to take the process seriously is a potential game-changer that would give the framework some credibility.”
“The announcement today is more than symbolic,” said Robert M. Kimmitt, who served as deputy Treasury secretary under President George W. Bush. “The fact that leaders are turning to the strategic challenge and doing it in a coordinated way at the level of the Group of 20 is significant.” See the Times story for more details.
The Times also has a good story on why Pittsburgh was selected for the G 20, by a fellow exile, Kate Phillips.

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