4th April

London Calling

The article talks about the success of G-20 summit, recently held in London, and various measures taken to revive the global economy through cooperation among world economies.

While the critics were silenced, the summit confirmed cooperation from each and every country. The G-20, besides pumping in the funds into IMF, also showed patience to the promised revamp of the governance structure. With $1.1 trillion injected into the global economy, IMF would have its share of $500 billion to help out distressed economies. Investment into emerging markets would ensure counter-cyclical spending. However, the issue of Global Financial monitoring remains pretty vague as to whether the supervision of global banks would have supranational jurisdiction or issue early warnings against overheating banks’ finances. While Basal committee sets standard for capital adequacy, supervisory review and market discipline, Financial Stability Forum would help in anticipating and identifying world’s financial hot spots. India would have participation in both. While its demand to contribute to IMF on the basis of quota was legitimate, but had India put the money on the table like China that would have been a stronger signal of it being a global player. It is also worthwhile here to note that according to WTO figures, the global trade could shrink to 9%, the biggest since WW2. In these circumstances, even slightest protectionism can have significantly ugly effects.

Clearly, such sentiments could soon stifle the global trade. G-20 must go beyond the rhetoric to its announcement to prevent protectionism.

Loosen Up

The article talks about the loosening stuffy protocols at the high offices of Presidents and Royals of Britain. The recent G-20 summit in London saw a lot of examples of this. 

While the objective of the summit was at the center stage, there were other interesting news items as well that floated around the world like the dinner menu that left out pork or Carla Bruni’s surprise absence. There were many gifts exchanged between the guests and the hosts like the engraved iPod gifted by the Obamas to Queen Elizabeth which contained Broadway tunes and Queen’s pictures of her last US visit. But the talk of the town was Michelle Obama’s putting up of arm around the Queen which was the violation of protocol. But that seems past since the Obamas have projected themselves different from their predecessors. The president has already done away with mandatory jacket in the Oval while Michelle Obama has already posed bare hands for an official portrait. In the coming four years, many other norms are also expected to be relaxed. 

For India also it’s time to relax the protocols for the, British Queen equivalent, President’s position which is absurdly exalted presently.