The group weathered this challenge, but the developing world needs more say in heading off future ones.
Optimism is the leitmotif surrounding the Pittsburgh summit Sept. 24-25. Yet certain concerns remain.
A year ago, as the dramatic recession unfolded around the world, many were convinced the world was heading for a repeat of the crash of 1929.
After a 9 percent reduction, global trade has rebounded, thanks to the injection of $250 billion in flexible, unconditional credit. By the end of 2009 nearly 50 million jobs will probably be lost, but there are signs that the worst is past.
Another $750 billion went to stimulate demand and stabilize the current accounts of many – particularly developing – countries hit by the drastic cutback in foreign trade and credit.
The scale of mobilized resources has been unprecedented. Yet even more significant was the quick and decisive show of collective will involved. The degree of trust thereby regained has helped keep the economy afloat during this period of uncertainty and turbulence.
The international community managed. Should we celebrate having avoided the worst? Should we sit back and wait for the next crisis? After all, the mirage that markets are self-regulating and that financial profiteering is somehow grounded in economic logic has finally collapsed.
Yet even those countries that were not wooed by the promise of easy gains found themselves unshielded from this gale-force crisis.
When G-20 leaders first met in Washington last year, no fully worked-out policy proposals were available. Yet leaders did not let themselves get bogged down in inertia or stalemate. They were aware that the crisis reflects structural imbalances that reach far beyond financial misdoings.