Economic crisis and luxury meeting

Where is Los Cabos? If G-20 Submit would have not taken place here then not even geography scholar nor would common people be interested except rich industrialists and celebrities for whom visiting this “resort town” of Mexico is a status symbol. The resort town is surrounded by Pacific Ocean and bay of California from three sides is a beautiful place which can be afford by wealthy people only and in this resort town ministers of G-20 submit have come together to find solution to fight against world economic crisis.

19 member countries and European Union are grouped together to form G-20. These are divided into five groups each group consisting of four countries and every group gets the opportunity to organize the G-20 Submit. Previously it was hosted twice a year but due to economic crisis they have decided to organize this meeting once every year but that to in a beautiful place, this was decided on November 2011 in France. In 2009 G-20 submit took place twice in London and Pittsburg, same in 2010 in Toronto and Seoul.

In 1999 ministers of 7 developed nations met in Germany and decided to meet every year to discuss on world economic crisis. They also decided to include other developing countries such as India, China, Brazil etc. in this. The result of this was that, the 80% population of the world is represented by this G-20 ministers but this is just a matter of saying. In reality economic forum like G-20 is used by America for their benefit or it given a platform for European Union to discuss solution of their problems.

World Bank chairman Mr. Robert Zoellick before the meeting had warned that if euro crisis is not dealt seriously then it will also affect the world economy. It was clear that first deal with euro crisis and then think of yourself. IMF had got $430 billion fund and it has been decided that huge amount of share would be spending for dealing euro crisis. The reason to say G-20 is centered at America- Europe is that, the first G-20 submit in 2008 was held in America later again two submit was held in America. In 2010 it was held in Canada and South Korea, last year it took place in France and this year Mexico. Next year it will be held in Russia followed by Australia in 2014 and turkey in 2015. It does not need to mention that who among them is a member of American club.

The question is that why not India, china, South Africa can host G-20 submit. Why every time in G-20 submit the burning topic for discussion is related to European union. Is everything fine in Asia or South Africa or else they are not dealing with any such problems. India’s Prime Minister Mr. Manmohan Singh, before the meeting stated that if euro crisis goes like this then it will affect Indian economy. Is it like Mr. Manmoham Singh wants’ to blame euro crisis for inflation in India or rupee depreciation and economic slowdown in India. In G-20 Submit Mr. Manmoham Singh emphasized more on infrastructure development, is it the only solution to deal with poverty, debt, inflation or hunger in the country?

Europe has one currency Euro and the countries which uses this currency comes under European Union. Out of 27 EU countries there are 10 countries where Euro is not accepted as their currency. These are Bulgaria, Czech Republic, Denmark, Hungary, Latvia, Lithonia, Poland, Romania, Sweden and Britain. There are some countries who are not from European union have also accepted Euro as their currency such as Monaco, San Marino, Andorra, Vatican City, Montenegro and Kosovo. It is surprising that beside EU there are other six countries who have accepted Euro as there currency where as there are also countries like Greece, Spain and Italy who thinks Euro as a bell in their neck. Greece after getting bankrupt and full of debt is thinking of leaving Euro as there currency, but winning new democracy party who is supporting bailout may not leave Euro zone. In two days submit Greece was the center of discussion. Pressure was there from American- European ministers that if BRICS countries will give huge amount of share then the burden would be less for other countries. But what is the benefit of BRICS in this? $75 billion of share is given by BRICS countries of which $43 billion is from China followed by $10 billion by India Brazil and Russia where as $2 billion from South Africa. This is an example of its kind where G-20 who provides solution for economic crisis to countries does not have their own secretariat or Headquarter. In 2010 President of France Mr. Nicolas Sarkozy had suggested Seoul or Paris for G-20 Headquarter which was not agreed by Japan and Italy. South Korea in 2010 had suggested hosting online “Cyber secretariat” but no response was seen from the ministers of developed nations. It is good that secretariat expenses burden is also not there for G-20.