By: Crystal Lui
The Group of Twenty (G20), a multinational assembly discussing matters of finance, trade, and current issues in the global economy, recently concluded their two-day summit in the populous Chinese city of Hangzhou. Topics at the meeting ranged from discussions of global trade to the worldwide growth of wealth inequality.
The recent G20 was hosted by China and allowed the country to flex its muscles and show off its ability to be one of the biggest players on the global stage. Chinese officials had reportedly given residents of Hangzhou seven days of vacation and discounted tour fees to nearby attractions to encourage them to go out of the city. However, human rights violations have also cropped up as local journalists claim Chinese officials have arrested at least hundreds of protesters in preparation for the summit. The effects of the increase in protectionism and isolationism, a subject on the minds of all the world leaders, can be found in the recent Brexit and the rise of certain political leaders such as Marine Le Pen in France and Donald Drumpf in the US.
President Xi Jinping of China urged the world leaders at the summit not to turn to policies that would stifle global trade. “It’s imperative we blaze a new trail to bring an innovative, invigorated, interconnected and inclusive world economy and a new round of robust growth,” Xi reminded the conference, warning away from any policy that would dampen growth.. This has prompted a rebuttal that calls to mind China’s artificial manipulation of its currency and of global markets.
China’s artificial manipulation of the Chinese yuan under the pretense of domestic stability is widely regarded as unfair to workers of other countries. With the yuan depressed, wages for Chinese laborers can stay cheap and encourage companies to build factories in China.
All of the world leaders, most notably President Obama of the US and President Xi, have agreed rising wealth inequality is a notable risk to global stability. People on low wages were one of the main proponents of Brexit, and the most of the wealth from globalization is not reaching the average worker equally. Britain’s prime minister, Theresa May following David Cameron’s resignation due to the Brexit,, stated that all the countries must “boost free trade and build a fairer economy that truly works for all.” Even though the problem of wealth inequality was accurately defined by a multitude of voices, practical solutions were not forthcoming.
This G20 also marks the last global event that Obama will be attending as President of the United States. Obama’s first G20 summit was in London 2009 where he and then UK Prime Minister Gordon Brown were the main voices on anti-protectionism policies to bring the world out of the 2008 financial crisis.
Although the legacy of the recent G20 summit may not be as spectacular as Obama’s first, the G20 has come to mean something more than economic and financial decisions, rather a time and place where world leaders can meet and discuss current issues in relative informality and work on changing the world.
