The financial earthquake that hit at the end of 2008 ̶ the most recent expression of the grave systemic crisis of the neo-liberal capitalist model (also manifested by the climate, food prices, energy and employment crises, plus relentless poverty) ̶ continues to spread throughout the world, showing its tragic face to the peoples in both the rich and poor countries of the planet.
Global powers reacted immediately to the crisis, coordinating their efforts to save the system, which, as the crisis clearly shows, is responsible for growing inequality and poverty in the world. The leaders of the most powerful countries united in the G8 decided to give a new configuration to the G20 by inviting the Heads of State of this select group of large and ‘emerging’ economies to join them and Finance ministers at G20 summits. Claiming to be the premier forum for global economic governance, the revamped and strengthened version of the G20 seeks to establish itself as the centre of global power, turning its back on the other 172 countries in the United Nations that, coincidentally, just happen to be, for the most part, the world’s poorest.
The inclusion of “emerging” countries of the Global South is not a sign of the G8 altruistically consulting and joining hands with the developing countries, but rather a change in its tactics. The G8 decided to include these developing countries in its exclusive club in order to 1) effectively prevent South-South alliances from developing further and stifle criticisms of the neo-liberal model, 2) shore up the G8’s dwindling legitimacy and 3) gain access to foreign exchange reserves accumulating in the “emerging” countries. By acquiring access to foreign exchange reserves in global south countries, the ‘old’ powers of the G-8 were able to temporarily salvage the financial system from collapse and revive the ailing International Monetary Fund and other International Financial Institutions. In turn, these reinvigorated IFIs have since gone on the offensive again with their structural adjustment programs, this time not only in the South, but also in the North.
Inclusion however does not mean equal participation. As can be seen, the real decision-making powers remain with the former G8 and their corporations. Furthermore, expansion does not also translate into legitimacy. The G20 is just as equally illegitimate and undemocratic as the G8. It is a non-elected and non-representative body that does not and should not represent nor decide on the economic and political directions of the entire world.
And just like the G8, the G20’s real aim is not to solve the crisis, but rather to revive the neo-liberal regime. The G20’s “active” measures to supposedly save all the world’s economies betray its true agenda and interests. Ideas initially introduced in its debates (namely the proposals for financial transaction taxes and measures to control tax havens) have been replaced by a push for fiscal austerity policies, further trade and investment liberalization and the fostering of new business and even more financial speculation through the promotion of false market solutions for the climate crisis, namely carbon trading. Even its financial reforms impose no real democratic control and accountability over the operations of banks or multinational corporations.
Against all the evidence of a failed economic model, which not only has plunged millions of people worldwide into poverty (including many of the people living in G20 countries) but also continues to contribute daily to the destruction of the very basis of life on the planet, the G20 governments continue to promote business as usual.
To make matters worse, the G20 — which originally emerged to contain the crisis — now aims to transform itself into the political space with the power to define the course of the world economy and governance, continuously broadening its agenda to include issues such as climate change, subsidies to fossil fuels and even development aid, while doing little of real substance in these areas. And with the World Trade Organization (WTO) bogged down in stalled negotiations, it is evident that countries are focusing their efforts more and more on the G20, which has increasingly become the centre of debate and decisions on issues of the global economy.
Our demands
We, social movements and organizations, must halt the G20’s agenda and undemocratic process, while continuing to build from below socially and ecologically sustainable and democratic alternatives. We demand:
– a change in the economic model, which implies putting an end to neo-liberalism and moving towards a new model based on systemic change and for the benefit and well-being of all peoples in the world (rather than corporate profits), including the adoption of bold economic strategies to create decent jobs, as well as a new international financial architecture;
– a halt to market based “solutions” for climate change and the anti-democratic Copenhagen Accord (a clear step backwards from the positive aspects of the Kyoto Protocol), and the immediate adoption of profound changes to our current system of production, distribution and consumption;
– an end to a global food system based on price speculation by agribusiness corporations and its replacement by a system of food production and distribution that supports small farmers and promotes food sovereignty;
– a suspension of trade negotiations at the WTO and of bi-regional or bilateral free trade and investment regimes until a new international agreement has been reached on trade and investment rules based on truly just and sustainable development for all.
Movements fighting for democratic alternatives and social and climate justice must unite to demand real change and denounce the G20 as a threat to the people of the world and an emerging target for disputing global power.
The Time to Mobilize is Now!
Join the People’s Week of Collective Actions in Seoul, November 6 to 12, 2010
The Korean People’s G20 Response Action – a broad coalition of Korean labour unions, social movement organizations and progressive NGOs formed in order to respond to the G20 Seoul Summit – is calling upon international social movements to join the People’s Week of Collective Actions in Seoul from November 6th to 12th, 2010. During this week of action, the main activities will be:
– Opening and closing ceremonies (November 6 and 12, respectively)
– National Workers’ Rally (November 7th)
– International People’s Conference in Seoul (November 7th to 10th)
– Press Conference to announce the Seoul Declaration protesting the G20
– Mass Rally and March (November 11th)
We call on social movements and organizations from around the world to unite forces in solidarity with friends and comrades in Korea during the People’s Week of Collective Action in Seoul.
For this, we strongly urge everyone to:
• send representatives to participate in the coalition activities in Seoul during the G20 Summit in November;
• organize a solidarity action in your own country to highlight what’s happening in Seoul during the G20;
• meet with government officials in your own country prior to the Seoul G20 to raise critical issues and gather intelligence.