Consistency at the Top
Published in El Tiempo
(Colombia) on 4/01/2009
by Sergio Muñoz Bata (link to original)
Barack Obama travels to London this week with the aim of convincing leaders of the 21 countries that generate 80 percent of global wealth to support him in his plan to reorganize the architecture of the global economy and overcome the most severe crisis the world has faced in more than half a century.
Given his enormous popularity in almost every country in the world, including his own, and the eloquence with which he presents his arguments, he is most likely to achieve many of his objectives. But his success would be greater, no doubt, if he manages to overcome some of his unexplained contradictions and decides to practice what he preaches for both the economy and free trade.
The proposal Obama will present to his colleagues has elements that match the economic recovery program that, with some difficulties, he has already begun to implement in the United States. In London, Obama will propose that governments of the countries represented act immediately to undertake programs of fiscal stimulation to encourage economic growth in their respective countries "until demand is restored.” He will also suggest that necessary measures are taken to stabilize the financial system and “restore bank credit, upon which businesses and consumers depend, as soon as possible."
The president’s offer includes establishing appropriate controls and sound operating rules that would apply to all financial institutions operating in the world, not only those on Wall Street; that laws be enacted, requiring transparent operation and reinforcement of surveillance mechanisms. The president also calls for the strengthening of assistance programs of multilateral institutions, such as the International Monetary Fund, the Inter-American Development Bank and the Andean Development Corporation, in coordination with the G-20, to provide commercial funding for the promotion of economic development, the invigoration of export, and assistance in creating employment in underdeveloped countries.
So far, reaction of leaders invited to the summit has been mixed. After all, the credibility of the virtues of North American-style capitalism is not going through a good time. The resounding failure of the domestic auto industry and the collapse of the national banking system and the largest insurance company in the world, under the complacent gaze of the George W. Bush administration, damaged the reputation of the country.
Despite criticism of the U.S. system and the president, himself, I still think if Obama recognizes his own contradictions, he could overcome the obstacles presented to him and return home with enough support to go ahead with his plan for economic recovery.
Obama must understand that the speech, in which he urged other countries to maintain the openness of their economies and to reaffirm repudiation of trade protectionism, is inconsistent with his actions. He cannot allege, with an impudence that borders on cynicism, that he is against protectionism, and cover up the protectionist indignities of trade union patrons in the U.S. Congress that unfairly violate the Free Trade Agreement with Mexico. He cannot be in favor of open trade and allow the insertion of irrational, nationalistic phrases in the stimulus package. He should not encourage, with trivial pretexts, the indefinite blocking of free trade agreements with two brother countries like Colombia and Panama.
If Obama wants to convince the world that his words are sincere, he should fulfill the United States’ commitments to Mexico, Colombia and Panama, three countries which, despite their differences with the giant of the hemisphere, still believe in democracy, capitalism, free markets and freedom.
Given his enormous popularity in almost every country in the world, including his own, and the eloquence with which he presents his arguments, he is most likely to achieve many of his objectives. But his success would be greater, no doubt, if he manages to overcome some of his unexplained contradictions and decides to practice what he preaches for both the economy and free trade.
The proposal Obama will present to his colleagues has elements that match the economic recovery program that, with some difficulties, he has already begun to implement in the United States. In London, Obama will propose that governments of the countries represented act immediately to undertake programs of fiscal stimulation to encourage economic growth in their respective countries "until demand is restored.” He will also suggest that necessary measures are taken to stabilize the financial system and “restore bank credit, upon which businesses and consumers depend, as soon as possible."
The president’s offer includes establishing appropriate controls and sound operating rules that would apply to all financial institutions operating in the world, not only those on Wall Street; that laws be enacted, requiring transparent operation and reinforcement of surveillance mechanisms. The president also calls for the strengthening of assistance programs of multilateral institutions, such as the International Monetary Fund, the Inter-American Development Bank and the Andean Development Corporation, in coordination with the G-20, to provide commercial funding for the promotion of economic development, the invigoration of export, and assistance in creating employment in underdeveloped countries.
So far, reaction of leaders invited to the summit has been mixed. After all, the credibility of the virtues of North American-style capitalism is not going through a good time. The resounding failure of the domestic auto industry and the collapse of the national banking system and the largest insurance company in the world, under the complacent gaze of the George W. Bush administration, damaged the reputation of the country.
Despite criticism of the U.S. system and the president, himself, I still think if Obama recognizes his own contradictions, he could overcome the obstacles presented to him and return home with enough support to go ahead with his plan for economic recovery.
Obama must understand that the speech, in which he urged other countries to maintain the openness of their economies and to reaffirm repudiation of trade protectionism, is inconsistent with his actions. He cannot allege, with an impudence that borders on cynicism, that he is against protectionism, and cover up the protectionist indignities of trade union patrons in the U.S. Congress that unfairly violate the Free Trade Agreement with Mexico. He cannot be in favor of open trade and allow the insertion of irrational, nationalistic phrases in the stimulus package. He should not encourage, with trivial pretexts, the indefinite blocking of free trade agreements with two brother countries like Colombia and Panama.
If Obama wants to convince the world that his words are sincere, he should fulfill the United States’ commitments to Mexico, Colombia and Panama, three countries which, despite their differences with the giant of the hemisphere, still believe in democracy, capitalism, free markets and freedom.