In this new video blog, Andrew F. Cooper interviews Eric Helleiner, CIGI Chair in International Governance, on the topic of his Briefing Paper, “From London to L’Aquila: Building a Bridge between the G20 and the G8” co-authored with Paola Subacchi (Chatham House and CIGI, June 2009). Here, Dr Helleiner emphasizes the need for long-term vision and coordinated responses at a time when much energy of world leaders and state officials has been focused on crisis management.
The G8 has an important role to play in setting the global economic agenda, but needs to involve wider casts of countries – geographically and economically – to understand the deepening impact of the economic crisis. With its inclusion of leading southern economies, such as China and India, the G20 has served as a more representative group. In the end, it is the international financial institutions that will guide and implement long-term measures.
Towards L’Aquila, the briefing paper urges the G8 to continue in the spirit of the G20 London Summit. The authors recommend that the G8 spell out and reach agreement on how to implement coordinated macroeconomic policy responses particularly vis-à-vis global imbalances. In addition, the impact of bailout plans and stimulus packages on neighbouring economies and trading partners should be monitored and mitigated. Fundamentally, the authors call on the G8 to demonstrate political will for the reform of the IMF’s surveillance role in anticipating and mitigating future economic conflicts.