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The following article was published in our article directory on November 12, 2010.
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G20 Internal Seek Cooperation Consensus Difficulty

Article Category: Business

Author Name: xia zihui

Differences mainly in the interests of all countries compete for external demand. In fact, the current exchange rate of the dispute intensified, trade boom and is designed to protect the country's trade surplus in current account surplus to set limits, in essence, would be a national competition for the characterization of the external market demand. Similarly, the current national vertical and horizontal display of a variety of diplomatic skill, or is the hope on the runaway expansion of external demand, soil, lose ground, either to defend its sequestration in the external demand for the share.

Admittedly, this summit in Seoul, to show the differences between the countries is a complex multidimensional. Trade deficit trade surplus country and the conflict between the country and advocated continued financial stimulus and deficit reduction, return to neutral monetary policy, differences between developing and developed countries dissent, big government liberal ideas and the concept of differences, exchange rate and capital controls in Jiong knowledge, etc., of any dimension and perspective, or hidden or to involve the Seoul summit of this set of issues.

These differences and dissent as a Road ID tag, only a small group of differentiation-style camp, dismantling the question again was falling apart G20, G20 exacerbated by the difficulty of internal consensus for cooperation. However, countries with horizontal, vertical and dismantling carried out to seek their own interests the interests of the greatest common divisor of the type of label of identification, like Huntington's "clash of civilizations", potentially reducing the G20 cooperation of the Condition, the global economy the road to recovery into a prisoner dilemma.

Therefore, G20 summit in Seoul next year if the French summit to submit a satisfactory answer, so that the summit in France next year to further highlight the atmosphere of solidarity, countries need to redress the tabbed as vertical and horizontal. In fact, the current in the G20 there is broad consensus within the foundation.

First of all, oppose trade protectionism is still a country of consensus. China's approach in this regard should be affirmed, in the recently concluded seventh session of the Fifth Plenary Session, the economic restructuring and expansion of domestic demand has become the second Five-Year Plan's top priority. China in the next strategic plan to expand domestic demand will continue to implement its free trade stance really for free trade around the world provide an example.

Secondly, the current differences highlight the G20 countries, and countries in expanding the current big government, over-Keynesian stimulus is directly related to the inefficient. Whether the United States or China, the financial stimulus negative effect on the economy have been demonstrated. The Fed's monetary policy is not only the extraordinary within the United States failed to resolve the credit crunch, debt deflation, but interfere with its pricing efficiency of financial markets, intensifying the credit crunch and the U.S. debt crunch. And China's massive stimulus plan, has exacerbated the domestic inflation and asset price bubbles dance trend, making the current economic growth derived from the investment effect of more, rather than the real output and demand effects, the final result will be excess capacity and non-performing assets rebound.

Thus, only countries to restrain determined to find the identity of labeling, as much as possible the removal of barriers to free trade and global economic rebalancing of the various barriers in order to make G20 really achieve the objective of cooperative game.

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