The Group of Twenty is an organization of the roughly 20 most powerful countries on the planet. Together, they are responsible for 80% of all world trade and two thirds of the world’s population. They get together a couple of times a year to discuss economic issues. The goal is global cooperation among economies and the promotion of discussion of economic issues across borders.
And it’s useless.
It’s such a novel idea right? Let’s get together the most powerful countries in the world and discuss issues. Perhaps we can iron out some problems and get some unity on a few fronts. But there’s a huge problem. First of all, you can never get 20 people together and ever have a productive conversation. When those 20 people are the most powerful on the planet you can probably only begin to have some success when you break into groups of 3-4.
Each time the G20 meets it’s called a “summit”. Like all parties each one has a theme. The G20 next meets on September 24 in the center of economic success, Pittsburgh. The theme is executive compensation so you know the media is going to be all over this. Does it frighten you that in the midst of a recession these people are getting together just to talk about executive compensation? We’re talking about controlling the pay of corporations, not government jobs! Worse, even on this topic countries don’t agree.
The G20 meetings are nothing more than a media field day and political posturing of the leaders of these economies. No wonderful plan will come of it, each country will continue to fuss about their own problems, and each will individually point to the United States to blame us for their problems. Of course this is arguably appropriate.
But what is the most important reason the G20 is useless? It’s that ultimately we’re going to do what’s best for our own countries first, and then think about how it impacts others. The classic example of this was in 1971 when President Nixon took us off the Gold Standard. He did this after consulting with many advisors, but never once spoke to any leaders from other countries. This greatly impacted the rest of the world because at the time their currencies were bench-marked to the dollar which was bench-marked to gold. This became known as The Nixon Shock.
We see this in other organizations too. Last year OPEC agreed to cut output in oil because the market was being flooded with oil inventories. The problem was no one actually cut their output.
Anything that could be accomplished with the G20 summits can be accomplished in other less public meetings. All the G20 is trying to do is let their constituency know they’re concerned about these economic topics and want to put on a good face. So don’t think these meetings help anyone in any way.
 By The Weakonomist |
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I feel the same about many of the “world” or “global” organizations that meet. My biggest beef is with the UN, especially the Human Rights wing of it. A more useless organization never existed – endless sanctions brought against Israel instigated by the most aggregious violators of human rights. It’s a real head shaker.
I actually feel bad for the Americans and Canadians who have to be part of it. A North American presense is needed for political reasons (I guess), but what a terrible, useless position to have.
In the end, its all posturing for the media. I truly wish that these meetings, organizations and summits were abandoned, and the money used for security and all the other associated costs were put to a much better use – education maybe.