The G-20 summit this weekend has received all kinds of reviews over the past few days. So what exactly is the G-20? As stated on the G-20’s website: “The members of the G-20 are the finance ministers and central bank governors of

19 countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom and the United States of America. The European Union is also a member, represented by the rotating Council presidency and the European Central Bank. To ensure global economic fora and institutions work together, the Managing Director of the International Monetary Fund (IMF) and the President of the World Bank, plus the chairs of the International Monetary and Financial Committee and Development Committee of the IMF and World Bank, also participate in G-20 meetings on an ex-officio basis.”

Given that the current crisis is a global crisis this is surely a great start. Nevertheless, one can only wonder why is it that some countries are not included? (But I guess that can be a whole other topic and debate). As for the outcome of this high profile event and it’s mixed reviews, let’s take a closer look at the actual end result and some reactions. I found some interesting points on Dani Rodrik’s blog as well as an interesting pdf, the G-20 suggestions. Some interesting points summed up:

Two separate but related problems: crisis and recession

Coordinated doesn’t mean identical

Crises will happen again: Listen to IMF warnings next time

Now I am definitely not an economic authority or an expert in finance but these points read like a joke or an “Iidiots guide to the current financial crisis”. Crises will happen again: Listen to IMF warnings next time? I leave it up to you to judge.

For some more official info from the G-20 summit you might want to check the statement posted on the New York Times website. Interesting is how the reasons for the crisis are summed up: “Root Causes of the Current Crisis - During a period of strong global growth, growing capital flows, and prolonged stability earlier this decade, market participants sought higher yields without an adequate appreciation of the risks and failed to exercise proper due diligence. At the same time, weak underwriting standards, unsound risk management practices, increasingly complex and opaque financial products, and consequent excessive leverage combined to create vulnerabilities in the system. Policy-makers, regulators and supervisors, in some advanced countries, did not adequately appreciate and address the risks building up in financial markets, keep pace with financial innovation, or take into account the systemic ramifications of domestic regulatory actions.” What about the overhyped growth experience in the last decade? What about the unsustainable growth of multinationals? What about the exessive bonuses earned by the world’s top CEOs?

I’d love to hear you views and thoughts, join the debate online: What’s your take on the G-20 summit?

(C) Image from www.g20.org/G20