G20: The two sides of the global economy
The biggest challenge facing the rich countries in Pittsburgh will be the world's poor.
BOSTON — As G20 leaders snake their way to Pittsburgh from all corners, they face very different circumstances from 12 months ago when the possibility of financial and economic catastrophe was all too real.
It's still ugly out there, of course, as millions of unemployed workers would glumly attest — from Britain to Canada, to Russia, South Africa and beyond.
But it is getting better.
America's $14 trillion economy is "very likely out of recession," according to U.S. Federal Reserve Chairman Ben Bernanke. Europe's two biggest economies — Germany and France — are growing again. Emerging powers China and India have resumed their rapid rises, while South America's economic giant Brazil has escaped the crisis, too.
So as G20 leaders haggle over the topics at hand in Pittsburgh — weighing additional stimulus measures, improving oversight of the global financial system, addressing the excesses of executive pay, boosting international trade, slowing global climate change — the economic landscape has, thankfully, changed for the better.
But don't be fooled by the return of relative calm to the G20 bloc. There will be blood. A meltdown of this magnitude claims many victims.
The question now is who will suffer the most from a crisis that swept from the casino canyons of Wall Street, to the smoke-choked factories of Guangdong, to the snowy peaks of the Andes. And, more importantly, what can be done about it? We heard one troubling hint last week from World Bank president Robert Zoellick: the poor. The World Bank predicts an additional 89 million people will be thrown into extreme poverty by the end of next year, defined as those subsisting on less than $1.25 a day. “The poor and most vulnerable are at greatest risk from economic shocks — families are pushed into poverty, health conditions deteriorate, school attendance declines and progress in other critical areas is stalled or reversed," Zoelick said upon release of the Sept. 16 report, which focused on the world's 43 poorest nations.
So why does this matter, you ask?
While low-income countries contribute less in terms of output than G20 nations, they play an increasingly important role in the global economy. And most have been severely damaged by the darkness of the past 12 months, as GlobalPost coverage of the meltdown has consistently shown.
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Photo essay: In Taiwan, fetching young women in outrageous outfits sell betel nuts. Is this a tourist draw, or national shame?
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Hanna Ingber Win - India - February 8, 2010 13:30 ET
Indian widows struggle mightily after a rash of farmer suicides.
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Seth Kugel - Brazil - February 8, 2010 06:51 ET
Brazil's exports to Iraq have exploded in the last year and poultry is leading the charge.
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Nicole Itano - Europe - February 8, 2010 06:40 ET
George Papandreou has stuck by his pledge to increase transparency despite economic woes.
Chile safeguards its food export success
Lezak Shallat - Chile - February 7, 2010 09:18 ET
Traveling to Chile? Don't even think about sneaking in an apple and cheese.
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Thomas Mucha - Commerce - February 7, 2010 09:07 ET
The reeling Japanese automaker turns from old school PR to new media.
Opinion: Africa needs free market economies
Marian Tupy - Worldview - February 6, 2010 11:51 ET
Gates money for vaccines will help Africa's children, but better economic policies will help them more.
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Tom Hundley - Middle East - February 5, 2010 06:44 ET
Human rights advocates warn that the workers building NYU's new campus could be forced laborers.
Japanese consumers tighten spending
Sonia Narang - Japan - February 5, 2010 06:30 ET
Once a hallmark of Japanese consumer culture, convenience stores are the latest casualty of the worldwide recession.
On Location: Sinaloa — The front lines of Mexico's drug war
Ioan Grillo and John Dickie - Mexico - February 4, 2010 09:13 ET
Video: Moroccan winemaker thrives
Erik German - Morocco - February 4, 2010 09:12 ET
Despite Muslim prohibitions, wine produced and sold from vineyards older than Roman times.
Sierra Leone boosted by World Bank
Kimberly S. Johnson - Africa - February 4, 2010 06:42 ET
Country's economy is still rebuilding after devastating civil war.
Opinion: How did China get double-digit economic growth?
Joel Brinkley - Worldview - February 3, 2010 11:17 ET
By dealing with some of the world's most repugnant regimes. Iran is just the latest on a long, long list.
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Nigeria's oil rebels end cease-fire
Shyamantha Asokan - Global Green - February 2, 2010 06:48 ET
Crucial Niger Delta oil production threatened, Nigerians ask where is President Yar'Adua?
No porn, no gore, no sensitive politics: Censored in Indonesia
Peter Gelling - Indonesia - January 31, 2010 08:54 ET
Has Big Brother moved back to Jakarta? Does it matter?
Opinion: Uganda should consult Ghana on oil
Stephanie Hanson - Worldview - January 30, 2010 11:46 ET
Good planning and transparency should help population benefit from new find.
Fordzilla vs. Japan
Thomas Mucha - Commerce - January 30, 2010 09:40 ET
It may not be a giant radioactive lizard, but Ford is stomping all over Japan's auto industry.
Special Report
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20 correspondents, 20 countries and a world of pain. Meet the ground truth of the global economic crisis.
Top budget retirement destinations abroad
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Looking for a fabulous place to retire on a budget? GlobalPost picked 10 intriguing overseas locales where you can stretch every dollar.
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Reporter's Notebook
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