Opinion: (Nouriel Roubini, Professor of Economics at the Stern School of Business, New York University, Chairman of Roubini Global Economics, co-author of the book Crisis Economics): “We live in a world where, in theory, global economic and political governance is in the hands of the G-20. In practice, however, there is no global leadership and severe disarray and disagreement among G-20 members about monetary and fiscal policy, exchange rates and global imbalances, climate change, trade, financial stability, the international monetary system, and energy, food and global security. Indeed, the major powers now see these issues as zero-sum games rather than positive-sum games. So ours is, in essence, a G-Zero world….
“There are several reasons why the G-20 world has become a G-Zero world. First, when discussion moves beyond generic principles into detailed policy proposals, it’s much more difficult to reach clear agreements among 20 negotiators than among seven.
“Second, G-7 leaders share a belief in the power of free markets to generate long-term prosperity and in the importance of democracy for political stability and social justice. The G-20, on the other hand, includes autocratic governments with different views about the role of the state in the economy, and on the rule of law, property rights, transparency, and freedom of speech.
“Third, the Western powers now lack the domestic political consensus and financial resources to advance an international agenda….
“Finally, rising powers like China, India, and Brazil are far too focused on managing the next stage of their domestic development to bear the financial and political costs that come with new international responsibilities….
“For the first time since the end of World War II, no country or strong alliance of countries has the political will and economic leverage to secure its goals on the global stage. This vacuum may encourage, as in previous historical periods, the ambitious and the aggressive to seek their own advantage.
“In such a world, the absence of a high-level agreement on creating a new collective-security system – focused on economics rather than military power – is not merely irresponsible, but dangerous. A G-Zero world without leadership and multilateral cooperation is an unstable equilibrium for global economic prosperity and security.”
My comment: To manage, one must understand the causes of the present and the goals for the future. The G-20 members have neither. To manage the interconnected world integrally, we shouldn’t be egoistic individualists, but should have the same integral qualities as the world today. Then it is possible to feel the world as integral and manage it. Today, everyone needs integral education, and the governments need it first.