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Trade

Getting to the Seoul of the Matter: Moving beyond currency disputes

Shahrokh Fardoust's picture
Photo: www.istockphoto.com

(Also available in Spanish)

Many observers predict that this week’s G-20 Summit in Seoul will be remembered mainly as a dance of high diplomacy aimed at persuading members to refrain from competitive devaluation of currencies and to reign in excessive current account imbalances.

If most headlines from Seoul are about spats over currencies and whose deficit or surplus is most harmful, then leaders  will have missed the Seoul of the Matter.

Indeed, such an outcome would be a setback for developing countries and could potentially erode the legitimacy of the G-20 as an inclusive broker of financial and economic cooperation in the global economy.

A role for the G20 in aid for trade?

John Wilson's picture
Port of Rades, Tunisia. Photo: © Dana Smillie / World Bank

As the G20 looks to establish itself as a permanent fixture in the multilateral policy dialogue, it should consider the global aid-for-trade agenda a top priority. The Summit in Seoul next month presents a unique opportunity to take concrete action in new directions on aid for trade.

The G20 originated – in part – as a global financial crisis management forum, and expanded out of the G8, in the wake of the 2008 world economic crisis. The Group has gained momentum and is solidifying its unique position as the most influential decision making group on global economic stability and growth. As it looks to solidify its transition as a global “steering committee” to sustain sound global growth what better policy issue to champion than one that is high profile, critical to both developed and developing countries, and in need of more effective global coordination -- than aid for trade?  

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