Mirtchev, A. (2011, October 4). Will G-20 Counter Power of Uncertainty?. Real Clear World.
With the run-up to the French G-20 summit, Dr. Alexander Mirtchev, President of the Royal United Services Institute for Defense and Security Studies (RUSI) International, noted in RealClearWorld that the rising tide of global economic turmoil and problems ranging from sovereign indebtedness to consumption and saving imbalances have created a ‘perfect storm’ that is far from abating. He considers the challenges that G-20 leaders face in setting forth a concrete, viable roadmap that genuinely addresses the range of outstanding global economic security risks, and in particular countering the uncertainty gripping the global economy. These challenges are underpinned by the political considerations that formulate the continued policy paralysis, which he considers exacerbates uncertainty and undercuts market confidence. Adding to the general sense of economic anxiety is the feeling that policy makers continue to be misdiagnosing the underlying problem. In the case of the immediate hurdle of the sovereign debt crisis, leaders appear to be primarily addressing a symptom – lack of liquidity, rather than the underlying cause – a lack of solvency. While the apparently inevitable response – debt restructuring – may be unpalatable to creditors, it is, in all likelihood, a reality, but requires a political solution. Despite the political difficulties, developing and implementing a viable roadmap to help governments and markets navigate the turbulent waters will go a long way towards reinvigorating sustainable economic growth and strengthening global economic security.