What happened at the G-20?
David Rothkopf at Foreign Policy about the G-20 and Pittsburgh:
In a world of self-help addicts who “just feel too much,” the ultimate hero was Watergate burglar G. Gordon Liddy. Never mind that the guy was a few rounds short of a full clip of ammo. He is the man who held his hand over a flickering candle flame while his flesh appeared to roast and then, when asked how he did it, responded, “The trick is not caring.”
I’m reminded of this because as we contemplate this week’s G20 Summit in Pittsburgh and reflect back on the breathlessness with which the entire world viewed the last two such summits, it is clear that the trick they’ve seemed to accomplish is that this time around we all don’t seem to care so much.
That could, of course, be partially due to the fact that this event is in Pittsburgh and that not that much really exciting has happened there since Franco Harris’ “immaculate reception” during an AFC Playoff Game in 1972. At least for me, even recent Super Bowl victories have lacked the gritty drama of those by-gone days as the town has become spiffier and blander. (Have you been to Pittsburgh Airport recently? It’s a shopping mall where they happen to land planes.) It’s not that the city isn’t grittier than say, Santa Monica. It’s just that I feel some of that special Pittsburgh “let’s have a beer and then punch each other in the faces until we fall down” kind of charm is gradually being lost. We’re not too far from the day when a little kid asks, “Why do they call the team the Steelers, Daddy?” and the father then has to explain that once upon a time the steel that went into American cars and buildings was made right here in America. (More on this last point shortly.)
Of course, the reason the meeting is in Pittsburgh has to do with at least one respect in which the region is still seen as pretty exciting to certain types of folks — like professional politicians, for example. Obama needed Pennsylvania to defeat John McCain. And the people of Pittsburgh like our current Ambassador to Ireland Dan Rooney helped deliver for the president and the president is therefore regularly looking for ways to deliver right back. (This is not to suggest that Rooney might possibly have gotten his job as a form of political payback. His years of experience as the principal owner of the Steelers made him an obvious choice for an important diplomatic position. After all, what riddles could dealing with the Irish pose that would be more complex or challenging than say, former Steeler quarterback Terry Bradshaw’s break-up with ice-skater JoJo Starbuck back in 1983.)
Joe Weisenthal at Business Insider:
Condensed G20 news: Climate change, banker pay, and the health of the financial system are all really, really important, and maybe one day they’ll do something about them.
Snooze.
But this is fun! Courtesy of NPR, test how many G20 countries you can name.
Spencer Ackerman on Obama’s statements today. The leaders statements here.
James Murray at Business Green:
The fast-expanding global clean tech industry could receive a once-in-a-generation boost today, after a draft statement from the G20 group of nations revealed that US president Barack Obama had secured a victory in his push for fossil fuel subsidies to be phased out.
The draft communique, seen by news agency Reuters, commits the group of 20 industrialised and emerging economies to phasing out fossil fuel subsidies in the “medium term”.
It states that “inefficient fossil fuel subsidies encourage wasteful consumption, distort markets, impede investment in clean energy sources and undermine efforts to deal with climate change”.
It also commits ministers to identifying strategies for phasing out the use of subsidies and requires them to report back to the G20 on their progress.
The move marks a major victory for the Obama administration, which had led calls for leaders of emerging economies to begin phasing out the generous direct subsidies that many government’s provide to help keep down the price of fuel, arguing that the subsidies are hampering efforts to curb carbon emissions and failing to boost quality of living for poor communities.
Simon Johnson at Baseline Scenario:
The headline news from the G20 summit in Pittsburgh is that progress has been made on “IMF reform,” meaning increased voting power for emerging markets relative to rich countries – remember that West Europeans are greatly overrepresented at the IMF for historical reasons. But further change in a sensible direction is being blocked by the UK and France – because they have figured out that this logic implies they would lose their individual seats on the IMF’s executive board.
The way to break this impasse is (1) for the European Union to consolidate into a single seat or membership, and (2) for the Union to assert its right to be the headquarters of the IMF (under the Articles of Agreement: “The principal office of the Fund shall be located in the territory of the member having the largest quota…”).
The US will push back hard – arguing that only countries can be members of the IMF. But what’s a country for these purposes? The UK, for example, has elected assemblies in constituent parts of its union (and different soccer teams), but can still belong to the IMF: “Membership shall be open to other countries at such times and in accordance with such terms as may be prescribed by the Board of Governors. These terms, including the terms for subscriptions, shall be based on principles consistent with those applied to other countries that are already members.”
Ultimately, this kind of decision is more about high politics than international law. The only part of the world where the IMF currently has the legitimacy to make a difference is in Eastern Europe, and most of the additional resources for helping that region should come from Western Europe – after all, Brussels had the not-so-good idea that “convergence” through EU accession meant that running massive current account deficits was somehow a good idea.
More Johnson
And to the protests. David Sessions at Politics Daily:
As world leaders met to discuss international economics and diplomacy in Pittsburgh on Thursday evening, police used tear gas and ear-splitting sirens to keep throngs of youthful anti-globalization protesters at bay. The demonstrators, many of them dressed in black and some wearing black masks, overturned dustbins to make a barricade in the neighborhood of Lawrenceville.
“By order of the city of Pittsburgh chief of police, I hereby declare this to be an unlawful gathering. I order all of those present to immediately disperse,” police officers said through powerful megaphones. At one point, the police began throwing tear gas canisters toward the group, catching one CNN reporter in the crossfire. A pattern developed as protesters would disperse and quickly reconvene a few streets away.
Caleb Howe at Redstate
UPDATE: Simon Johnson at TNR
Heather Hurlburt and Daniel Drezner at Bloggingheads
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