Archive for June 20th, 2012

Remarks on the G 20 meeting in Los Cabos.

The G20 meeting in Los Cabos, Mexico is over without any definitive solutions to European financial crisis. It seems the leaders are still divided and unable to come to an agreement as to whether more stimulus spending is needed or decisive austerity measure is the way out of the financial crisis.

Those that push for budget cuts are led by Germany and the UK, while those that support stimulus spending and job growth are led by Brazil and France. It was astonishing that the G20 final communiqué still talks about the “absence of international standards on derivatives and reiterates commitment that no bank or other financial institution is “too big to fail”, while G20 member governments still continue to endow tax payers’ funds to banks.

Other topics of particular interest to Africa, “sustainable agricultural productivity, innovations in crop quality technologies in sub-Sahara Africa, support to fulfil MDGs, support infrastructure investment, and green growth in the context of sustainable development and poverty eradication” were included in the final communiqué.

At Los Cabos, Europe has let its intentions of working towards taking “concrete steps to integrate its banking sectors” known, which of course would require nations to give up more sovereignty.

Professor Mekonen Haddis

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