The financial summit witnessed this weekend in Washington the reshaping of global politics which will logically lead to the reshaping of the world economy. However, a lot of unresolved issues and significant details seem to have been left out.
There was a first time participation of leaders from developing nations like India, China and Brazil in the G-7/G-8 summit which otherwise would have featured only the rich nations from around the globe.
Led by President Bush and prominent leaders from Japan and Europe, the group of twenty nations agreed upon several reforms which could be incorporated in the financial system and on a set of principles which could be followed in their efforts on fighting against the current crisis.
According to the Peterson Institute for International Economics director, Fred Bergsten, the fact that the G-7/G-8 summit has transformed into the G-20 summit is the most significant aspect of this meeting as the group of twenty nations will now be the world economy’s steering committee.
The summit lasted for less than twenty four hours and was called for in urgency due to the fact that the global economy was not behaving as per expectations with traditional measures such as interest rate cuts not really turning around the crisis ridden economy.
All leaders unanimously agreed that the efforts taken so far towards economic stability was not sufficient and there was an urgent requirement for further aggressive action.
Countries all over the world will announce new economic measures shortly said Gordon Brown, the Prime Minister of Britain. No one however committed to any specific amount.
