G-8 nations to confront global economic and bevy of regional crises.
The global economic crisis and finding agreement on the regulatory framework to confront it; regional crises such as stabilizing Afghanistan, the Democracy movement riots by ethnic Chinese muslims in Guadong province; the repression of opposition protesters following the Iranian elections; the never-ending quest for Middle-East peace; food safety and security; policy struggles surrounding climate change and the emission of greenhouse gases, and WTO deregulation of world trade are the main issues with which the world’s leading nations will be confronted at the G-8 2009 Summit of major industrialized nations. The summit is taking place in L’Aquila, Italy later this week (8-10 July). Silvio Berlusconi, the Italian PM in the midst of a very public divorce and sex scandal, will Chair the event. As Chair of the event, he has set on the agenda global economic crisis, climate change, and the economic integration of Africa in world affairs as his top priorities. Although protesters have announced plans to be present, it will be relatively subdued. The effort will have neither the presence, nor the impact of the London G-20 protest movement.
G-8 Ministers
Foremost on the L’Aquila G-8 Summit agenda is the necessity to find consensus among G-8 members on defining common international financial regulatory policy; finding agreement on banking & financial industry ethical and legal standards; new international rules governing the transparency, propriety and integrity of Global Markets and international capital flows; and setting common Central Bank rules for global economic and financial activity as the world struggles to recover from the global economic crisis precipitated on Wall Street. President Obama and PM Berlusconi, during private 15 June meetings two weeks ago, collaborated on the agenda for the then upcoming G8 Summit point-by-point. “We want this G8 to reach concrete solutions,” said PM Berlusconi, after the meeting at the White House. They focused in particular on rules and principles for confronting the global economic crisis. In addition, China’s premier just last week called for an open debate about a global reserve currency at the G-8 Summit as an alternative to the U.S. dollar. Although these issues were addressed during the London G-20 Summit, these issues are given more import in this summit because the G-8 is composed of the seven wealthiest nations in the world. The G-7, plus Russia makes up the G-8 group of nations. Russia was voted in as a strategic matter following the fall of the Soviet Union. In addition, the presidents of the European Union, and large emerging economies called the G-5 — Brazil, China, India, Mexico and South Africa — as well as Egypt representing Arab and Islamic interests — are included in discussions.
Perhaps the second highest priority on the agenda, voiced by PM Berlusconi, is the hope that the eight major countries’ meeting in L’Aquila will impart a renewed sense of urgency and importance to resuscitating the stalled World Trade Organization (WTO) negotiations — known as the Doha Round. The WTO’s goal in the Doha Round of trade negotiations is to eliminate trade barriers (tariffs) in all Global Markets under one agreement. However, despite several rounds of negotiations, the failure of the Doha Round is the result of the unwillingness of the major Western industrialized nations to end protectionist practices — such as providing generous government subsidies or tariff support — in their domestic markets (e.g., agricultural and textile sectors); while at the same time requiring emerging market nations to end theirs.
The third, but perhaps most pressing, issue on the agenda is a unified response to regional crises — perhaps economic sanctions — such as the political repression in Iran following the Islamic republic’s recent presidential elections. However, this will be complicated by off-the-record reports from diplomatic circles in New York that under President Obama’s new policy of engagement with Iran, the U.S. will oppose sanctions against Iran. Summit officials are predicting pointed debates between the leaders of the industrialized nations over an appropriate response to Iranian authorities’ repression of reformist demonstrations in Iran led by opposition leader, Mir Hossein Mousavi amidst rumors that the U.S. might oppose sanctions against Iran. In addition, just this past Friday, G-8 foreign ministers — meeting separately in Rome and in advance of the Leaders meeting this week — strongly condemned North Korea for its nuclear testing, recent long-range rocket launch, and their testing of short-range rockets in the Sea of Japan saying in a draft statement that the actions threatened regional peace.
Global Emissions
Also on the agenda is the sensitive topic of climate change, greenhouse gases and global carbon emissions trading regimes, like the so-called ‘Cap & Trade’ legislation currently being debated in the U.S. Senate. This is particularly important since all eight member nations account for an overwhelming portion of dangerous greenhouse gas and carbon emissions in the atmosphere worldwide (See world carbon emissions by nation here). What’s more, is that depsite the shift in U.S. policy on climate change currently being worked out, the Europeans still have concerns that the U.S. and China — the two largest global polluters — will strike an accommodation with each other effectively gutting recent moves forward in this area. Read more about G-8 2007 climate change consensus here, and here.
In addition to the formal agenda, PM Berlusconi in recent interviews with the international media has also stressed the need to re-think the nature and structure of the G-8. The aim is to make it more representative and more efficient through the stable and structured involvement of the emerging economies (China, India, Brazil, Mexico and South Africa), along with Egypt to represent the Arab, Muslim and African world. Nicolas Sarkozy, the French president publicly supported that position during an annual Franco-Italian summit in Rome earlier this Spring.
