G20 Summit A Success

Leaders of the world's largest economies met in London this week to discuss the worldwide economic crisis. According to BBC News, this summit was a "historic" event because it created a economic plan potentially worth $1.1 trillion. Obama, of course, was present and actively participated in drafting the new agreement. The plan calls for stricter control of bankers' pay/bonuses, a new board that will work directly with IMF to "provide an early warning mechanism for the financial system" (BBC News: http://news.bbc.co.uk/2/hi/business/7979483.stm), and $100 billion in aid to poor countries. The G20 countries also plan to inject $5 trillion into the world economy by the end of next year. Despite some disagreements between certain countries (the US and UK wanted more public spending while Germany and France wanted more financial regulation), it was decided that the leaders would reconvene in New York next year to check on the agreement's progress.

I personally think that this summit was a commendable effort by our world leaders. We really needed to meet with other foreign nations and reach a final agreement, because when it comes down to it, we are all interconnected whether we like to admit it or not. I am a little hesitant about the amount of money that is being injected into the world economy, however. $1.1 trillion is a lot of money, and it has the potential to do a lot of damage if it is not used properly. It seems, though, that the leaders have used the money for a good cause - increasing the trade credit of some of the poorest countries. These countries will have more trading capabilities now, allowing them to right themselves once again.

However, the G20 summit has also caused a lot of drama in terms of protests. 400 protesters stood in front of the Bank of England, while a few hundred more stood in front of the ExCel Centre. Roughly 120 arrests were made. I really don't understand what these individuals are protesting. The summit agreement, in my opinion, should help our economic crisis tremendously.