This weekend in Sydney, the finance ministers of the G20 group of countries meet. Every meeting has an official theme, and this one is no exception – the subject is restoring global group.
Over the last few years we have seen amid the turmoil in the developed economies of the world, the emergence of huge growth in Asia and South American economies in particular. Much of this growth had in part been due to the other countries problems particularly the US. The US Federal Reserve for example has been buying bonds in order to keep money cheap and interest rates low – this has helped the US economy return to growth but it has many other economic impacts. For example funds were driven towards the emerging countries seeking to invest in the higher growth rates and higher interest rates.
Now this money is being returned to a more prosperous US, also because the risks in developed countries are much lower. This is causing a huge problem with big falls in currencies in Argentina and India for example. The US has faced some criticism that it’s own economic policies have caused such instability in other countries.
Over the last few years, we amongst others have reported some of the incredible rises in the economies of some of these nations particularly the likes of Brazil and Argentina. However it seems that the underlying instability and weaknesses of these economies means that they could be subject to damaging fluctuations when big economies like the USA change their policies.
It’s unlikely that we will ever see the situation where a country like the US will alter it’s economic policy in order to reduce global instability, western democracies really aren’t built like that. However it is hopeful that meetings like this with the other G20 countries will at least make them ‘mindful’ of the affect that their policies can have on other countries with less stable infrastructure.
There are some interesting debates on the US media both print and online, you can access the US online news services from ABC, CNN and NBC by using a US proxy service like this.
Additionally there is coverage of the G20 meeting itself on the BBC website, the majority is accessible internationally although to view the news and broadcast documentaries – you may need to watch this video.
For accessing the above reports on an iPad please see this post