President Obama Promotes Global Economic Vision
Op-Ed Article Outlines New American Economic Strategy
Mar 24, 2009
President Obama´s op-ed article was strategically released ahead of the upcoming G-20 Summit in London. International economic forums have recently taken on a greater importance as the global economic downturn continues to highlight the economic codependence of states. The article focuses on international cooperation, American leadership and domestic efforts for reversing the downturn; and support for similar domestic activities by other countries. Some observers see the article as outlining and confirming a complete departure from traditional American economic policy and philosophy.
Need for Global Economic Cooperation
President Obama begins his article with an affirmation of the need for global cooperation and decisive action. He writes that: “We are living through a time of global economic challenges that cannot be met by half measures or the isolated efforts of any nation. Now, the leaders of the Group of 20 have a responsibility to take bold, comprehensive and coordinated action that not only jump-starts recovery, but also launches a new era of economic engagement to prevent a crisis like this from ever happening again”.
Change in Economic Philosophy
Protectionism and “laissez-faire” economics are presented in the article as evils to be avoided. President Obama expresses his conviction that: “Our efforts must begin with swift action to stimulate growth. Already, the United States has passed the American Recovery and Reinvestment Act as the most dramatic effort to jump-start job creation and lay a foundation for growth in a generation…Other members of the G-20 have pursued fiscal stimulus as well, and these efforts should be robust and sustained until demand is restored. As we go forward, we should embrace a collective commitment to encourage open trade and investment, while resisting the protectionism that would deepen this crisis”. Some analysts view this as a rebuke of the so-called conservative policies espoused by many politicians and political strategists.
The article goes on to explore the need for all states to investigate the stability of their financial institutions and the measures needed to stabilize them when necessary. Furthermore, President Obama opines that international cooperation for regulation and stabilization is essential due to the fact that in modern times financial institutions and whole economies are linked by obligations, as well as profits. He writes that: “Together, we can embrace a common framework that insists upon transparency, accountability and a focus on restoring the flow of credit that is the lifeblood of a growing global economy…the G-20, together with multilateral institutions, can provide trade finance to help lift up exports and create jobs”.
To the surprise of many, President Obama includes international financial aid to emerging markets as a valid part of any strategy for global economic recovery and stabilization. He deduces that: “The G-20 should quickly deploy resources to stabilize emerging markets, substantially boost the emergency capacity of the International Monetary Fund and help regional development banks accelerate lending. Meanwhile, America will support new and meaningful investments in food security that can help the poorest weather the difficult days that will come”. He then outlines his belief that America´s own economic stability depends in part on the stability of emerging markets.
Open and Progressive Conclusion
As part of his call for action and cooperation, President Obama also issues an apology for the economic activities that have contributed to creating this crisis; and he rejects traditional economic ideologies. He concludes that: “I know that America bears our share of responsibility for the mess that we all face. But I also know that we need not choose between a chaotic and unforgiving capitalism and an oppressive government-run economy. That is a false choice that will not serve our people or any people… The United States is ready to join a global effort on behalf of new jobs and sustainable growth. Together, we can learn the lessons of this crisis, and forge a prosperity that is enduring and secure for the 21st century”.
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