samedi 14 février 2009

G7 , no financial protectionism

US, UK, Japan, Germany, France, Italy and Canada (G7) met in Italy to talk about the global economic crisis. Three main points were agreed. Stabilising world economy and financial markets would be their priority, they want to reform the IMF, and avoid protectionism as barriers to free trade would make the stuation even worse. The following points were also debated :
  • Praise for recent economic moves by China;
  • Help for banks; and
  • The need for a speedy end to the Doha talks on world trade
In another article quoted later on (cf Le Monde), they say that they would support and boost growth and employment as well as strengthen financial sector. A "bad bank" has also been proposed in order to keep the banks' "toxic buoyant" (actifs toxiques).

This meeting is seen as "a stepping stone" for a next meeting in London in April of G20.

This article isn't really precise about the decisions taken by G7. Another article on Le Monde isn't very precise, neither, although it gives further information. Does that mean that G7 didn't manage to really take decisions about the global economic crisis ?
However, one thing is clear; the "era" where the economic system should change and that liberalism should let the place to another kind of economic system and concept hasn't come yet. Indeed, after the economic crisis, it has been heard a lot that the economic system would change and that the crisis was a good lesson for liberalism. People thought that another economic system would be put instead of liberalism. The conclusion to avoid protectionism made by G7 contradicts this idea. I don't know if raising barriers to free trade would worsen the situation because every country would become withdrawn, or if it could help the situation by avoiding such dependence between all the countries. Analysts in G7 seem to believe that barriers would worsen the downturn.
And you, what do you think ?

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