To address the most severe financial crisis engulfing the world, U.S. Secretary of State Hillary Clinton today discussed what characterizes a healthy global economy at the G20 Ministerial in Los Cabos, Mexico.
In her remarks, Ms. Clinton reiterated that global economy must be open, free, transparent, and fair.
“A free system is one in which ideas, information, products, and capital can flow unimpeded by unnecessary or unjust barriers.” -Ms. Clinton
She stresses that transparent system is one where rules and regulations are developed out in the open through wide consultation. She adds that a fair system is one where companies compete on a level playing field based on agreed-upon rules, which sustains our faith in the system itself.
She highlighted that these principles have underpinned the greatest era of growth the world has ever seen. She adds these priciples have empowered entrepreneurs in all societies and fueled the emergence of middle classes from Seoul to Sao Paolo to Nairobi.
“No nation is perfect in honoring these principles, including my own. But all who benefit from open, free, transparent, and fair competition have a vital interest in protecting it and a responsibility to follow the rules.” -Ms. Clinton
She underlines that enough of the world’s commerce now takes place with the developing economies in this room that the failure of any group of nations to participate in the rules-based system would render the entire system unworkable.
However, Ms. Clinton stressed that at the height of the most severe financial crisis, the world has recognized that simply gathering the world’s eight industrialized economies would no longer be enough to stabilize the global economy and promote balanced growth.
“We needed to include a broader range of stakeholders. Together, this broader group quickly expanded emergency lending capacity. We helped prevent a deeper slide. And in so doing, we set ourselves and the G20 a high bar for the future.” -Ms. Clinton
According to Ms. Clinton, the countries of the G20 make up more than 85 percent of the world economy.
She stresses that as G20 work to create the conditions for sustained recovery, more inclusive growth, and widespread prosperity, the group should aim to summon the same political will they showed in a crisis.
Ms. Clinton says the G20 has already proved its potential to help nations emerge from crisis.
“Today, let us redouble our efforts to recover and prosper together.” -Ms. Clinton
The developed G20 members – Australia, Canada, the EU, France, Germany, Italy, Japan, the United Kingdom and the United States.
The developing G20 members – Argentina, Brazil, China, India, Indonesia, Mexico, Russia, Saudi Arabia, South Africa, South Korea and Turkey.
The G20 countries represent about 90 percent of the global gross national product and nearly 80 percent of world trade. They also include two-thirds of the world’s population.