Coordination and harmonization are keys to collective action in global governance. The jury remains out as to exactly what China’s hosting can accomplish with respect to either.
ANU’s Adam Triggs recently wrote that there were only three practical things that any G20 Leaders’ summit can accomplish:
… it can share information and best practice policies between countries; it can reform global governance by either reforming existing institutions like the IMF or creating new ones; or it can undertake what Oxford University’s David Vines calls ‘concerted unilateralism’, where countries implement policies (fiscal, monetary or structural) to suit their own economies, but do so collectively.
As a number of us suggested in our V20 Hangzhou gathering at Zhejiang daxue in the spring, Leaders also can, and should extend, their efforts beyond what is described above. Indeed in our collective view there is nothing more critical than having G20 Leaders direct their message to their own publics. They need to signal their publics as to what is critical in their G20 efforts. As our Blue Report to the Chinese leadership urged:
Together, G20 leaders can make clear and powerful statements which can signal the path of economic progress to all actors around the world. … Leaders at G20 Summits can strengthen their connection with their publics by devoting more attention to the content and the modes of communications from the summit platform. … Key ideas could be summarized and Leaders could speak in more direct ways to their publics. … G20 Leaders understand that globalization requires fair and updated rules that can elicit trust, a sense of fairness, and certainty.
Well really no sooner had the G7 at Ise-Shima Summit (May 26th-27th) in Japan concluded, then our attention was redirected to the US-China 8th S&ED (Security and Economic Dialogue) that concluded in Beijing on June 7th.
The annual meeting is a chance to take the temperature once again of US-China relations. The Summit, as the name implies is made up of two tracks – the Strategic Track led by the US Secretary of State, John Kerry and State Councilor Yang Jiechi and each is a special representative to their respective leader. Meanwhile the Economic Track was led by US Treasury Secretary Jacob Lew and Chinese Vice Premier Wang Yang.
Even a quick read of the two communiques reveals just how different the tracks are. The Strategic Dialogue took some 19 pages to report on its collective efforts, while the Economic Track took a mere 3.
It is clear that the US came at the economic discussions urging changes and reforms to Chinese economic behavior and bringing the complaints and difficulties that US businesses have, and continue to face, in China. From the media report, below from the the NYT, it is clear that there is growing frustration in the US business community over the array of regulations that inhibit US business interests in China:
James McGregor, Greater China chairman for communications consultancy APCO Worldwide, who attended a Tuesday event for executives with senior U.S. and Chinese officials, said executives were blunt in stressing how negative things were becoming for foreign companies in China.
Finance Ministers and Central Bankers Moscow July 2013 Image Credit: x.dawn.com
The Finance Ministers and Central Bankers of the G20 met as scheduled in Moscow at the end of the week. This periodic meeting is just a part, though a key part, of the “iceberg” that is global summitry today. A fascinating factoid – this meeting of “finance” officials does not generally include the central bank officials when it gathers at the actual G20 Leaders Summit. Given the key role that central bankers have been playing in trying to “right” the global economy, that probably should come to an end. But in any case their communiqué underlined the Iceberg Theory that I and others have identified for some time.