The 2006 G20 meeting of finance ministers, reserve bank governors and the heads of the World Bank and IMF will take place in Melbourne on November 18-19. This will be the most significant gathering in Melbourne of people responsible for pushing corporate-led globalisation, neoliberalism and capitalism since the World Economic Forum in 2000.
Here are some frequently asked questions and answers concerning the G20, and the importance of challenging it.
WHAT IS THE G20?
Australian treasurer Peter Costello describes the G20 as the “premiere forum for discussion of global economic issues” (www.g20.org).
The G20 was formed in 1999 in the wake of the South East Asian financial crisis, with the brief to help stabilise the international financial system to ensure continued economic growth. It consists of yearly meetings of the finance ministers and reserve bank governors of the world’s largest economies, and also includes the President of the World Bank, Managing Director of the International Monetary Fund, and a representative from the European Union and the European Central Bank. The chairs of the International Monetary and Financial Committee and Development Committee of the IMF and World Bank also attend.
Member nations are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the UK and the US. Together they comprise two-thirds of the world’s population, 90% of global GDP and 80% of world trade.
The G20 is chaired by a different member nation each year – in 2005 it was hosted by China, and this year it will be by Australia. In addition to the yearly meetings, other gatherings and seminars are held at other times throughout the year in the host nation – in 2006, there will be meetings of deputy-level officials in Sydney and Adelaide. The G20 does not have staff nor a secretariat of its own, and relies on the rotating host country to administer it.
WHAT’S DISCUSSED AT THE G20?
The primary goal of the G20 is to discuss and develop policies that promote the “high and sustainable growth” of the global economy. It does this in part through promoting policies consistent with the G20 Accord for Sustained Growth agreed to in 2004. This Accord stresses a range of neoliberal policies, including:
– The elimination of restrictions on the international movement of capital
– Deregulation
– Flexible labour market conditions
– Privatisation
– Enforcement of intellectual and other private property rights
– Creating a business climate conducive to foreign direct investment – Global trade liberalisation (through the WTO and bilateral free trade
agreements)
In 2006 the theme of the G20 meeting will be “Building and Sustaining Prosperity”. The issues to be discussed will include domestic reforms to achieve “sustained growth”, global energy and resource commodity markets, ‘reform’ of the World Band and IMF, and the impact of demographic changes due to an ageing population.
WHAT INFLUENCE DOES IT HAVE?
While the G20 is often described as an informal space for discussing ideas and developing policies, the following statements by representatives of the G20 (see www.g20.org) suggest that it has a major role in governing the (corporate-led, neoliberal) global economy:
“The G-20’s economic weight and broad membership gives it a high degree of legitimacy and influence over the management of the global economy and financial system.”
“By contributing to the strengthening of the international financial architecture and providing opportunities for dialogue on national policies, international co-operation, and international economic and financial institutions, the G-20 helps to support growth and development across the globe.”
G20 discussions can have a significant influence on the policies and activities of the World Bank and the IMF. Given the horrible destruction these institutions cause to people and environments throughout the world, and the tremendous threat they pose by pushing corporate-led globalisation and ‘developments’ that fuel dangerous climate change, G20 meetings have a dangerous influence on the future of our planet.
The G20 also develops policies on a range of issues concerning the destructive international financial system. It’s an opportunity for the likes of Peter Costello to not only confirm their neoliberal policies back home, but also to standardise these policies across much of the globe.
Furthermore, the G20 is a key means through which the industrialised nations attempt to influence the policies of the ’emerging economies’ of Argentina, Brazil, China, India, Indonesia, Mexico, South Africa and Turkey. These large ‘developing’ nations could play a crucial role in resisting corporate-led globalisation, given that most of their people want an end to the destructive neoliberal policies of their governments and of the World Bank, IMF and the WTO. Furthermore, a stance against neoliberalism by these emerging economies would help smaller Majority
(‘Third’) World nations to also resist.
The G20 is a forum in which leading officials from the overdeveloped world attempt to court the governments of these emerging economies into an “international consensus” of privatisation, trade liberalisation and market fundamentalism. We have already seen over the past couple of years how the US, European Union and the WTO Secretariat have successfully co-opted the governments of Brazil and India to sell out the interests of impoverished nations – in order for them to join the ‘big boys’ of global economic and political leadership.
The 2004 Chairperson of the G20, Hans Eichel, stated that “it is not without reason that many observers accord the G20 an important role – for some, even the most important role in the future – in global governance”.
(http://www.bundesbank.de/g20
WHAT WOULD THE G20 BE DOING IF IT WAS SERIOUS ABOUT REFORMING THE WORLD BANK AND THE IMF?
The G20 claims to be interested in reforming these international financial institutions to loosen their control by the United States and the European Union. Peter Costello is reportedly keen to press for Asian countries in particular to have a greater role in their governance.
However, the communiqué arising from the 2005 G20 meeting in China stressed that the IMF should exercise “enhanced surveillance of the global economy”, and that the macroeconomic policies of the IMF and World Bank should continue. Far from reforming these institutions, the G20 supports the grip that these institutions have on impoverished nations across the globe (see www.brettonwoodsproject.org, www.eurodad.org, www.50years.org for examples of their destructive influence).
If the G20 was serious about “building and sustaining prosperity”, it would dismantle these institutions and replace them with other agencies that supported relocalisation, self-determination and regional self-reliance, and which limited the power of capital, private property rights and transnational corporations to prey on communities and the environment – but this would all be going against the vested interests of who and what the G20 really represents.
WHAT WOULD THE G20 BE DOING IF IT WAS SERIOUS ABOUT ADDRESSING GLOBAL ENERGY ISSUES?
The 2006 G20 meeting will include a strong focus on the challenges to economic growth posed by the rising cost of oil (as did last year’s meeting in China).
However, rather than facing up to the realities of peak oil and dangerous climate change, the G20 seeks to strengthen neoliberal policies that emphasise private property rights over the commons (air, land, water, etc), and which rely on markets to distribute ‘energy and resource commodities’. Furthermore, the G20 seems no more intent than the G8 to take action on dangerous climate change – it hardly even mentions it.
WHAT ARE THE ALTERNATIVES TO NEOLIBERALISM THAT WE COULD BE ADVOCATING FOR?
The G20 plays a major role in pushing corporate-led globalisation, neoliberalism, capitalism and the global growth economy as the only way to run an economy and a society. Many people believe that this model destroys natural environments, colonises Indigenous communities, impoverishes most of the world’s people, isolates workers and farmers, and creates great hardships for women. The model breeds militarisation, war-driven competition and police states. Despite the mantra of ‘sustainable economic growth’ it is inherently unsustainable in the context of environmental limits, dangerous climate change and peak oil.
Millions and millions of people across the world are living out alternatives to this model, from Argentinean solidarity economies and Venezuelan co-operatives to Indian communities regaining control over the commons, from South African anti-privatisation movements to community food gardens in Australia. The G20 protests represent an opportunity for people to claim their right to advocate for these alternatives based on values such as participatory democracy, environmental justice, human dignity, cooperation, community, relocalisation and fairness.
WHAT DOES IT MEAN THAT SOME MAJORITY (‘DEVELOPING’) WORLD NATIONS ARE REPRESENTED IN THE G20?
Civil society groups in Argentina, Brazil, India, Indonesia, Mexico and South Africa have spent two or more decades protesting against the neoliberal policies of their governments. Unfortunately, the finance ministers of many Majority World nations are pressured into following the demands made by the World Bank and the IMF. We have a special responsibility to act in solidarity with the demands of people throughout Asia, Latin America, Africa and the Pacific for changes to their governments’ policies, and to transform or dismantle the international financial institutions that drive them.
WHY IS THE G20 RELEVANT TO AUSTRALIA?
The last 12 months (well, several years!) have seen some of the worst advances of neoliberalism in Australia’s recent history – the complete privatisation of Telstra, Industrial Relations laws, anti-terror laws, nuclear waste dump legislation, welfare-to-work changes and the enforcement of voluntary student unions. The Coalition government is conducting a major attack on people’s rights in order to push neoliberalism, and Peter Costello will be waving the flag of the government’s ‘achievements’ in November at the G20. The neoliberalism that is hurting the world is the same neoliberalism that is hurting us.
WHY SHOULD I BECOME INVOLVED IN CHALLENGING THE G20?
The effects of neoliberalism and corporate-led globalisation are everywhere – they affect us personally, our families, our communities and the planet. Neoliberalism and corporate-led globalisation causes wars, famine, poverty, homelessness, racism, bigotry, insecurity, unhappiness, emptiness and depression – and environmental destruction. Dangerous climate change is building, and peak oil may have a huge impact.
To create a world of safety, respect, cooperation, diversity, human rights, strong communities and liveable environments for ourselves and our children, we need to act. The G20 is pushing us in the wrong direction.
HOW BIG WILL THE PROTESTS BE?
The G20 does not have the profile of the World Economic Forum, where 20,000 people successfully blockaded, demonstrated and created an alternative three-day solidarity economy outside the Melbourne Crown Casino in September 2000. No heads of government nor major corporate CEOs will be attending. However, it will attract considerable media attention, given that such ‘notorious’ people as Paul Wolfowitz (President of the World Bank) will be there. It’s an opportunity for autonomous groups, networks and non-government organisations to expose corporate-led globalisation for what it is, and to creatively suggest alternatives to capitalism.
WHAT COULD HAPPEN AT THE PROTESTS?
This is up to all of us to decide! Groups and networks can design their own autonomous actions, street theatre, teach-ins and community organising events. It’s an opportunity to show our dissent against corporate capitalism and neoliberalism, to present alternative pathways for our society based on economic relocalisation and strong, open communities, and to educate ourselves and others about how to gradually spend less of our time, energy and money feeding the corrupt global economy.
HOW DO I GET MORE INFORMATION?
The official G20 website is http://www.g20.org.
There are many groups and networks involved in organising activities, events and protests concerning the G20. Stay tuned to your nearest Indymedia website (see www.active.org.au) for details.
For more information, contact Rodney of the Reclaim Globalisation collective at Friends of the Earth at [email protected]
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