Obama in London

Today United States President Barack Obama departs from Washington for London with a simple but fundamental objective: to obtain a firm commitment of unity from the most powerful countries in the world in the fight to overcome the serious economic crisis.

In the British capital the so-called Group of 20 (G20), composed of the countries of the Organization for Economic Co-operation and Development (OECD), will meet. The OCED has added Russia, India, Brazil, and some other emerging nations to its roster.

In the meeting they will attempt to formulate specific proposals that, on the one hand, will increase the level of stimulus to the economic recovery and, on the other, will increase the levels of regulation in the management of the economy, in order to avoid the abuses and excesses that prominent characters carried out with the money of taxpayers and that, in essence, played a key role in the outbreak of the crisis.

Taking into account that stimulus and regulation are, at least in theory, contradictory, there is much debate both in the U.S. as well as in the E.U. and Japan about how to achieve an equilibrium that works and assures an effective recovery.

Interviewed by “The Financial Times”, a London newspaper specializing in Economics and Business, Obama pointed out that some small positive movements in the markets have taken place and that that tendency would be able to grow if they adopt the appropriate measures.

In fact, the stock market has had small but constant rises, that have given encouragement to hope. Obama left no doubt that under his leadership the fight will continue against abuses and opportunism that were found in some large corporations that, in the middle of the debacle, distributed bonds and collateral benefits to their executives, in many cases for astronomical sums.

The taxpayers, he said, had reason to be indignant because their money may have ended up in the hands of those who, in the beginning, committed the atrocities that triggered the disaster.

But, he emphasized, at the same time we should be ready to generate funds to stimulate the economy, so that we might be able to have expansion. This ought to last to the year 2010 so that we may effectively see results in the fight against the crisis. Specifically, we should obtain equilibrium between stimulus and regulation. President Obama’s visit to England is his first long foreign trip and the most important in content.

It will gauge the will of the rich countries with regards to investing in the reconstruction and will anticipate whether the International Monetary Fund and, later on, the World Bank, will play a protagonist’s role.

Also of importance will be the role of emerging countries like China, Brazil, India, and perhaps South Korea. This South Asian country is the principal importer of crude oil in the world and one of the global manufacturing and technological exporters, despite the economic crisis.

The G20 meeting is capable of instilling hope in the world. For the good of humanity, we hope that it does.