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As world leaders converge in Toronto to discuss the global economic recovery, The Daily Beast looks at the tough choices they'll need to make—and who's likely to wield the most power.
Click Image Below to View Our Gallery of the G-20 Summit
Saul Loeb, AFP / Getty Images
What’s at Stake at This Year's Summit
This year's G-20 arrives as the global economy is taking baby steps toward stabilization, and the attendees—a mix of developed and developing nations—will attempt to hash out differing opinions on how to continue that trend. The main focus this year is coordination—each individual country's recovery efforts must work in tandem so that they aren't thwarted by interconnected markets working against each other. The leaders also need to figure out how each of the various nations will begin to wind down their stimulus and bailout plans without pitching themselves—and each other—back into financial meltdown. U.S. Treasury Secretary Timothy Geithner is urging Europe and Japan to boost their own domestic demands, as China has done, saying major economies are not doing enough to encourage growth. Also on the agenda are discussions on how to reform international finance institutions like the World Bank.
Obama Wants Stimulus, Europe Wants Austerity
President Obama held a mixed hand as he headed to Toronto. Congress just reached an agreement for a major overhaul in regulations of the financial industry, a big victory for the president. But the Senate was unable to overcome a filibuster of another economic stimulus package, hurting Obama’s ability to make the case to already-reluctant foreign leaders that governments worldwide must continue to stimulate their economies instead of passing austerity measures. Several European leaders, shaken by the recent debt crisis in Greece, seemed to have made up their minds: both Germany’s Angela Merkel and Britain’s David Cameron arrived at the G-20 having just proposed strong belt-tightening measures at home, and Canada’s Stephen Harper praised Cameron’s fiscal restraint. Those countries are willing to accept a short-term slowing of economic growth as the price of longer-term gain in market confidence, one economist said.
We're All In This Alone
“The ‘fellowship of the lifeboat’ will be harder to maintain as the acute crisis passes,” said Stewart M. Patrick of the Council on Foreign Relations. In other words, the severity of the crisis has lessened, and this may make it more difficult for the group to come together on important issues. “During the last three summits, it was much easier for countries to reach agreements, such as implementing stimulus packages, because everybody was trapped in the crisis, and they were sitting on the same sinking boat. But now, everyone has recovered, although to different degrees, and begun to make selfish calculations again,” said Prof. Niu Xinchun of the Institute of American Studies in China.
A Shifting Power Dynamic
The nations gathering at the G-20 break down into two basic categories: those that have built their wealth on finance and so-called creative industries, and those who still rely on bricks-and-mortar economies. Pundits and politicians have been touting the high-tech information economy as the best way to keep America at the top of the global food chain. But though iPhones are pretty and hedge funds impressive, a quick look at history—and the recent financial crisis—shows that the decidedly less glamorous manufacturing industry is the best engine for growth, argues Joel Kotkin for The Daily Beast. While the U.S., Europe, and Japan struggle with budget deficits, bank bailouts, and sky-high rates of leverage, countries that have held on to “basics”—raw materials, agriculture, and manufactured goods—are currently the world's fastest growing economies (Brazil, Turkey, India, South Korea) and the most stable (Canada, Australia.) As a result, this year's G-20 is seeing something new: a subtle but unmistakable shift in power, in which countries that grow things, mine things, and make things are able to assert themselves uniquely.
Can Angela Merkel Succeed?
Germany’s first female chancellor, and arguably the European Union's most powerful leader, has been popular since she came into office in 2005. But several recent decisions have turned people against her, both at home and abroad, causing her popularity to wane and her political clout to erode. Her budget cuts in Germany were unpopular (both with her own voters and with President Obama), and her reluctance to save the euro is irritating to the French. Germans are also generally against bailing out Greece, which caused her to drag her feet before ultimately signing a $1 trillion bailout package; this hesitancy helped spur a confidence crisis in Spain and Portugal. All of which means Merkel goes into this year's G-20 with diminished capital to argue for her positions.
12 June 26, 2010 | 8:40pm Twitter Emails
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The only thing that Barack Obama has done since taking office is to spend and borrow and spend, placing America in more debt than the oil pouring into the Gulf. Obama's now asking the world for more making him and America an international beggar. This pathetic human being is allowing from the start of his tenure in office his huge self centered ego to destroy the United States of America and all that Americans seem to be doing is to sit on the sidelines in total bewilderment doing nothing. Nothing to stop him or to get him and his party to pull the reigns in and stop the never ending flow of spending borrowing and deep pocket debt. A debt deficit that is totally unsustainable any longer. This unappreciative power playing ego tripper has no ideas worthy of America and is so full of himself, he can't even appreciate the gift he was given by the American people of serving as their President, he believes he was entitled to the office and still to this day isn't conscious of what being President of the United States actually means. As far as he's concerned he believes he should be god on earth. The other leaders at the G20 know otherwise, and they've seen through his naivety and are not only fed up with him, they will play him off as the dismal failure he is, by patting him on the back and pleasant words for the cameras but behind his back, they would all like him to buzz off, like most Americans. It's a pity that he was elected and it will be alarming if his party in the House and Senate are returned to power in November. Maybe by then he might try and close the hole and plug the leak, and I'm not talking about the spill, I'm talking about the bill Americans will be having to pay for decades and generations to come. He's the absolute worst President ever, and I thought George W. Bush was, and that says something.
Good, as long as you're mad I know Obama is doing the right thing.
You want Obama to design his policies so they make randyrocker mad? Thats totally mindless, even for you!
OK I can't take any more of your mindless babble ! What Obama HAS DONE WAS BRING THE UNITED STATES BACK FROM THE RUIN BROUGHT ABOUT BY BUSH/CHENEY,AND THE GOP. You people have done nothing to fix YOUR MESS ,nor did you pass any laws that helped the common man , plenty to help your friends like BP . In two years we have Heathcare reform, financial reform , equal pay for equal work , and that spending your so worried about went into keeping your Fire deparents open ,and your police stations manned ,your hospital open , and your schools open. All the things YOU PEOPLE TAKE FOR GRANTED UNTIL YOU NEED IT . My question to you ,and your kind is WHAT THE HELL HAVE YOU DONE TO EASE THE PAIN YOU HAVE BROUGH TO THE AMERICIAN PEOPLE ? So far NOTHING EXCEPT JACKASS STATEMENTS AND SLANDERS ! Instead of fixing the mess your party caused all you all have done is make thing worst for Joe Public ; if your not going to be part of the solution to get America back from the abiss your party caused SHUT UP AND LET US DO WHAT IS NEEDED TO CARE FOR THE COUNTRY YOU NEARLY DESTROYED!
Obama was unprepared for: *Health care *Cash for Clunkers *Wall street bailout *Auto bail out *....EVEN the Olympic Bid! *Economy in general and jobs in particular *Developing an Afghan policy and having to go to West Point to announce it *Christmas Day bomber (if we recall, it took him days to respond) *Failure to secure US borders *TImes Square bomber *GITMO *Lack of effective action in the Gulf Spill, and failure to listen to the governors involved *The dysfunctional Country Team in Afghanistan, resulting in the relief of Gen McChrystal One simply cannot play golf; take two vacations in less than two months; shoot hoops; have parties as the present incumbent of the White House seems enjoy, while the nation is in a deep recession; prosecuting two wars; and has a major disaster in the Gulf of Mexico, and on our borders. Just signs of POOR LEADERSHIP ON THE PART OF OBAMA!! Regardless of what he believes, HE IS NOT, REPEAT NOT OMNIPOTENT!! Folks at the G8 and G20 have a much clearer perception of what President Obama has done - AND HAS NOT DONE - than the people of the USA. It is not a pretty picture! Obama has lost his 'luster' with the majority of his counterparts.
Best President Ever: http://www.youtube.com/watch?v=RQhVkLU8vqE&feature=player_embedded
Ummm, You do know he has accomplished more in his 1st year than any president since FDR. The last time this much was done during a presidency, alcohol was illegal.
But Obama still has done more to correct the mess your party DIDN'T do in 8 years . Obama walked into a America Full of Elephant crap !,and he's been shoveling us out of your mess for two years we're sorry he hasn't fix in two years what your party took 8 years to break or destroy . People who have robbed , lied, killed, and Polluted our pristine land have no legs to stand on to shout complaints to those left holding the bag , and fixing the damage you left . So what ia your solution to the mess your party left ? Deneigh unemployment to those whose joss you've destroyed !
All the usual silliness aide, another industrial revolution is possible, although we need to look more in the direction of NASA and similar programs for the technologies to move forward in this direction--even those that might still be classified for one reason or another.
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