Beyond belief: G-8 becomes the G-20

Wow!

In an extraordinary development the Group of 8 (G-8) is diluting its power to become the Group of 20 (G-20). The G-8 is a collection of the 8 most economically developed countries in the world. This group has coordinated the economic policies of its members for most of the post-World War II era. In addition to NATO and the Warsaw Pact (old skool); and the United Nations; the G-8 has been one of the most powerful organizations in the world for several generations. NATO and the WP were concentrations of military and political power. The United (States) Nations has been a concentration of political power. The preceding institutions numbered well more than 8 members. But the G-8 has had near exclusive purview of economic power since before I was born. Typically nations do not cede power. So what’s up? And what does this all mean?

What’s up?

This move simply reflects reality. The world is becoming more developed and more than 8 nations are now important to the health of the world economy. Left out of the G-8 for example were China, India and Brazil – some of the most important and fastest growing economies. So the G-8 are recognizing the importance of other nations to the health of the global economic system.

Additionally, the G-20 is proposing sweeping changes to the operational mandate to ensure greater coordination of economic policies. What is being suggested is that nations would have to subject their economic policies to scrutiny and by inference, approval, by fellow G-20 members.

Unfriggin‘ believable.

What Does It All Mean?

I cannot emphasize enough how dramatic a shift this is. It is a movement from competition and exclusivity in economic policy making to cooperation and inclusivity, instead. [For the spiritual out there, this is a re-balancing of power from masculine energy to feminine energy.]

I am certain that there will be a tremendous hue and cry from those elements of each G-20 member who think that power only resides in competitive structures. The irony, of course, is that the corporation, that scion of competition, is a model of embodying the power of both competition and cooperation. Yes, corporations compete against each other for resources (read profits), but they are also amalgamations of thousands of people working together for competitive purpose. Most people never genuinely see the huge amount of cooperative energies right under their noses.

So if there is hue and cry (simmer down Republicans) – don’t believe the hype!

*****

Specifically the G-20 are focusing on the following right now:

* Reducing the world economy’s reliance on the U.S. consumer

* Boosting domestic demand in China – read: increasing the world economy’s reliance on the Chinese consumer

* Reducing U.S. borrowing from foreigners

* Increasing European investment

Each of these policies is absolutely essential and obvious. The shock is that it is being talked about at all, and even more so, in a context of cooperation. This truly is a dramatic ideological shift from what has been. It remains to be seen if it will all work out as envisioned; read: enforcement.

Separately, and also encouragingly, the G-20 are looking to move against oil speculators. Hallelujah! And outsized executive compensation at financial institutions. Doublelujah!

Jason

PS – The major impetus behind this is reported to be President Barack Obama. GObama!