FIDEL: The Prelude - G-20

[magbana]

"Reflections of Fidel
The prelude

THE Baseball Classic and World Cup football fill stadiums and enthuse the masses in every part of the world. Of course, we all consider ourselves experts on the subject – myself included – and argue heatedly with any and everyone.
However, when it is about the economy, in which events are taking place that are decisive for the world, those interested in the issue can be counted on the fingers of one hand. I searched for the event in our press and not one word appears on the G-20 meeting that will begin in London in two days’ time. Yesterday, it was mentioned on the television evening news, in order to highlight the spectacular security measures being taken by the British authorities. They told us that Obama is to take 200 men from his secret service, all experts in protection. In passing they told us details about the sophisticated four-engine Boeing that is transporting them, with 80 television channels, close to 100 telephone lines and the machinery with keys to order a strike from its nuclear warheads, always ready to be deployed. We also learned about the helicopter, specially designed to transport him by air to the conference center, and the invulnerable and impenetrable armored car in which he will move on land. These constitute the latest advances in science and military technology placed at his disposition.
On the significance of the Summit, not one word. This is not a criticism of our news media, it is simply our way of acting in the face of the international economic issue. Exactly the same is happening in other countries. Nevertheless, the very near future of billions of poor people who are living off their labor is dependent on the agreements reached at that Summit.
Using information supplied by the international news agencies, specialized magazines, speeches and interviews given by heads of state and leaders of United Nations agencies, I will try to follow the course of the meeting, in which the major economic and ideological contradictions that characterize the complex world of today – immersed in a profound crisis – will be present.

In a statement to BBC1, Kevin Rudd, prime minister of Australia, from the Labour Party, stated that the heads of state and government of the G-20 countries will not approve an economic stimulus package at the London Summit. He noted that the previous Summit had already approved 1.5 trillion euros and that it is now the International Monetary Fund’s (IMF) turn to decide what additional support the economy might need.
The UK government has denied the content of a draft communiqué allegedly to be emitted by the G-20 leaders, leaked via the German Der Speigel magazine.
A spokesman for Gordon Brown stated that the document was an old one and that it related to the previous G-20.
The Bank of England stated that the British economy was not in any position to go further into debt.
According to another news agency, G-20 leaders are affirming that support for the financial sector, increased public spending and extra financing to the IMF would pull the world economy out of recession by the beginning of 2010, stated a draft communiqué published on Sunday by the Financial Times.
"We are determined to ensure that this crisis is not repeated."
President Dmitry Medvedev informed the BBC that Russia, as one of the most heavily export-orientated countries, has suffered a lot from the ongoing financial crisis. He said that the G-20 leaders need to reach an agreement at the Summit, "because it is the future of our countries and our peoples that depends on our accord, on our determination to introduce fundamental changes into the world financial architecture."
The heads of state and government of the world’s 20 largest economies prepared a draft statement for the Summit in which they commit themselves to combating protectionism and completing negotiations for international trade.
Official sources told the Financial Times that the text of the communiqué will not change ahead of the Summit. "A global crisis requires a global solution," the draft says. The G-20 leaders are determined to ensure that this crisis is not repeated and are seeking "an open world economy based on market principles, effective regulation, and strong global institutions…"
The head of the British Foreign Office stated that London and Washington will not pressure G-20 governors to announce specific spending commitments. He played down the importance of the distancing between countries backing a larger stimulus, such as Britain and the United States and those urging prudence, like France and Germany.
In his turn, President Obama stated yesterday, March 30, to the same British newspaper, that he had issued a call for G-20 unity. He assured that the world leaders know that they must deliver a strong message of unity in the face of crisis for the good of the global economy. He played down talk of a split between the United States and the European continent countries, in particular the opposition of Germany and France to introducing further stimulus packages. However, he conceded that "… there has been a backlash at home against higher spending that may make it difficult to offer further economic stimulus measures soon."

"In all countries there is an understandable tension between the steps that are needed to kick start the economy and the fact that many of these steps are very expensive and tax payers have a healthy scepticism about spending too much of their money…"

"If voters perceive that it’s a one-way street that we are just pouring more and more money into institutions and seeing no return other than avoiding catastrophe then it’s harder to make an argument for further intervention."
More than 180 countries of the world will not be present at the London meeting. No wonder that it is being affirmed that only representatives of the 20 largest economies will be there. However, there are profound contradictions among them, both within the Western countries and between these and the emerging ones, which are waging battle against the financial crisis on behalf of their right to develop.
A synthesis is not an analysis. It is simply about transmitting to my compatriots the essence of the G-20 debates in London, and always in the fear of over-extending myself and being boring.

Fidel Castro Ruz
March 31, 2009
1:29 p.m.

Translated by Granma International "
http://www.granma.cu/ingles/2009/april/mier1/Reflections-31march.html