Chatham House/CIGI Report

Paola Subacchi and Paul Jenkins
  • The recent financial crisis has shown how integrated the world economy is and how complex financial and economic interdependencies between countries have become
  • The way in which nations design and implement their national economic policies is inadequate to prevent economic crises or to achieve balanced, stable and sustainable global growth
  • National policy-makers should upgrade their domestic policy-making by publishing 'international impact assessments' about the international effects of their domestic policies, recognising that their decisions can cause ripples across the global economy which - in turn - can have a domestic impact
  • G20 nations need to invest in strengthening international and national diagnostic capabilities in order to better understand how cooperative action (or lack thereof) can enhance (or thwart) the likelihood of achieving both domestic and international objectives
  • Practical steps to develop a framework for international policy cooperation include the G20 leaders adopting a new tone for cooperation from the top and establishing a single statement of purpose for the G20. The transparency and accountability of the G20 should also be improved, including looking at electing the presidency of the G20 from among the group.