Restructuring and rebalancing the global economy necessitates assistance to developing countries to help them move up along the economic development trajectory more swiftly. But this must be done by enhancing the capacity of these countries to develop, implement, and maintain their own government and social institutions that help drive a sustainable development process and take ownership of them.
The United States acted quickly and effectively to provide humanitarian aid in the aftermath of the Haitian earthquake. But as President Barack Obama noted, the United States together with the international community “can ensure that assistance not simply delivers relief for the short term, but builds up Haiti’s capacity to deliver basic services and provide for the Haitian people over the long term.”
There is a lot to be done. Each of these brief recommendations requires a whole host of policy measures to be implemented at regional and national levels. And who should assume responsibility for overseeing the rebalancing the global economy? At this juncture, our best bet is the leaders of the Group of 20 developed and rapidly developing nations. The United States can and should play a major role in strengthening this institution and helping it evolve as an ongoing forum for global governance, but other developed and developing nations, particularly China, India, and Brazil must also step up to the plate.
At the upcoming G-20 meetings in June 2010 and then in November 2010, the G-20 leaders should take stock of the measures that the countries are taking to rebalance their respective economies to help rebuild a more harmonious, balanced, and stable economic system. There is now a system in place to address these interconnected global issues. It’s time for the participants to engage on these issues seriously and swiftly.
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