Writing for today’s Financial Times, Australia’s Prime Minister Kevin Rudd and South Korea’s President Lee Myung-bak believe the G20 countries can lead the way in the shift from the recession to recovery. After the unprecedented level of response to the global crisis, the two leaders laid out some challenges that G20 nations still have to face as well as plans as to how the biggest 20 can go about with their plans to see a successful emergence from the crisis.
The three major challenges they believe include following through on their existing commitments, manage the transition from crisis to recovery, and finally, the transition to a more balanced growth. That said, there are similarly three strategies that the countries can follow:
Developing a flexible framework for co-ordinated macroeconomic policy will be a central challenge for the G20. The Pittsburgh summit later this month is an opportunity for G20 leaders to launch a process to guide the global transition. At Pittsburgh, G20 leaders should agree to a three-stage process. First, national governments should develop their own national strategies for recovery. Second, they should agree to deliver these strategies to the International Monetary Fund before the end of the year and ask the IMF to report back on their consistency with balanced and sustained global growth. Third, G20 leaders should meet again in 2010 (when South Korea is the chair of the G20) to agree their responsibilities and actions to achieve this goal within the framework of post-crisis global economic management.
Read the entire piece here.