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WSJ: G20 Speed Dating in Los Cabos

Author: David R. Malpass
June 19, 2012

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The obstacles to global growth are clear and need to be addressed in national capitals, not a resort town, writes David Malpass for the Wall Street Journal.

With global growth precariously slow, the two-day G-20 summit this week—the diplomatic equivalent of speed dating—did little but drain more money from deeply indebted nations. Greece's Sunday election strongly endorsing the euro did more to promote global economic growth than anything that happened in Los Cabos.

Despite the announcement of the "Los Cabos Growth and Jobs Action Plan," which mostly commits Europe's struggling economies to still more government control, Group of 20 leaders have fundamental disagreements on practically every key economic topic—high taxes or low, larger or smaller central bank bond portfolios, more government or less.

The clearest decisions that came out of the summit promoted governments, not private sectors, pointing to even more deficit spending, an IMF expansion led by China and another expensive G-20 meeting next year in Russia. The outcome raises fundamental doubts about the G-20's value in furthering free markets, strong private economies and global living standards.

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