Ideas to Action:

Independent research for global prosperity

Views from the Center

CGD experts offer ideas and analysis to improve international development policy. Also check out our Global Health blog and US Development Policy blog.

 

New Chinese Regulations Reflect Growing G-20 Appetite for Anticorruption

The G-20 is not ordinarily considered a major player in the drive against corruption in international business transactions, but that may be changing.

The Toronto Summit in June 2010 established a working group “to make comprehensive recommendations on how the G-20 can take practical steps to combat corruption.” During the Seoul Summit in November, a coalition of emerging market members of the working group (including Brazil, Argentina, South Africa, and Mexico) quietly joined with the United States to urge China to adopt an anti–foreign bribery law.

G-20 Member Argentina Is Failing Basic Data Transparency Test on Inflation—And Where’s the IMF on It?

Bad news from Argentina:  The government has been tampering with inflation statistics for several years (publishing official rate as 8 percent compared to independent estimates greater than 20 percent).  Now it is imposing big fines ($100,000) on private consulting firms and individuals producing private estimates.  And where is the IMF on this issue?  In deference to its member Argentina it publishes the official estimate with a footnote suggesting private estimates are much greater.  More background (in Spanish) can be found

The Currency War: Risks for Latin America and the Role of Central Banks

During the 13th and 16th of November, the Latin American Shadow Financial Regulatory Committee (CLAAF) held their second meeting of the year in Lima with the purpose of discussing the effect of the currency wars on the Latin American region. As a result of the meeting, we presented the 23rd CLAAF statement. The statement has been extremely well received and broadly covered by the Peruvian press.

IMF Reform: How the Poor Man (That’s the USA) Had a Good Idea

IMF governance reforms were agreed the week before the G20 Summit.  One decision – to increase IMF resources but not by much – may matter for the IMF’s role in a still-unsettled Eurozone – if Ireland’s problem becomes Portugal’s and so on.

For a full and nicely balanced assessment of the reforms from Ted Truman, including on resources, go here.  Among other things, unpacks a couple of little-known and little-understood facts that are (though he doesn’t say so directly) about the role of the USA – the poor man with good ideas.

Three Seoul Sleepers and a Damp Squib

Perhaps predictably, media coverage of the G-20 Seoul Summit focused on the currency wars, and assessments of impact of the meeting were decidedly mixed (though, interestingly, more negative in the United States than in the big emerging markets). But global imbalances were hardly the only item on the agenda. Three summit documents have the potential to become more important with the passage of time, especially if the development community seizes upon them as opportunities to press the big economies for pro-development policies and spreads the word.

Trade at the Seoul Summit: Will the G-20 Finally Move Forward on Improving Access for Poor Countries?

There actually seems to be hope that next week’s G20 summit will move beyond the tired mantra to finish the Doha Round and give a push to the Millennium Declaration commitment to provide duty-free, quota-free market access for the world’s poorest countries. This is an opportunity to contribute to job creation and growth when the global economy is still fragile. Furthermore, it would have minimal impact on importing countries since the least-developed countries account for around 1 percent of global trade.

Scoop! Members of the G-20 Development Working Group

Following my recent post on the G-20 development agenda and the upcoming Seoul Summit, several readers wrote asking if I had a list of the members of the Development Working Group. I starting asking around and was pleased to be able to obtain one. Of course, it would have been more useful if it had been released sooner, along with contact information for the members.

Currency Wars Are a Development Problem and the G-20 Has a Major Role to Play in the Solution

Last weekend’s communiqué from the G-20 finance ministers is a first step to bridge the divide in the ongoing currency wars. I find both hope and disappointment in the Communiqué. It is very positive that the G-20 ministers have called for the IMF to help identify countries with policies leading to large and unsustainable imbalances. This is a step in the right direction, although no specific quantitative indicators have yet been advanced.

Pages

Tags