Money Talks
As public affairs advisor in the Bureau of Economic, Energy and Business Affairs, I frequently have to figure out how to explain economic policy to a non-economic audience. Being part of that audience myself, I usually turn to the experts in the bureau. When I asked my colleagues about the agenda for the Pittsburgh Summit, they pointed to several key terms and concepts that will be used by government leaders, policy experts, and news commentators. Here’s a preview of lingo you might encounter in the deliberations and declarations to come:
Sustainable and Balanced Growth – A country’s economy grows when it produces more goods and services for consumers, businesses, governments, or foreign buyers (exports). If a country relies very heavily on one of these areas, its growth may be both unsustainable and unbalanced. For example, an economy that expands due to rapidly growing exports can run into trouble if its trade partners suddenly start purchasing less. It faces a situation that may not be sustainable and – due to the lack of other growth locomotives – may also not be balanced.
Compensation Measures – There is likely to be discussion at the G-20 about how to ensure finance professionals are not compensated in a manner that leads them to take risks that endanger the global economy.
“IFI” reform – Policymakers are looking for ways by which the international financial institutions (IFIs – commonly pronounced as “iffies”) can be most effective in stabilizing the global economy and creating optimal conditions for sustainable global growth over the longer term. The IFIs include the IMF, World Bank, and multilateral development banks.
Exit Strategy – When people talk about “exit strategies,” they are referring to how governments choose the right time and right strategy to unwind the fiscal and monetary measures taken to date. It is particularly important that different countries do not do this in a manner where policies work against each other. Though it’s too early to declare victory right now and begin unwinding the extraordinary measures taken to date, we are seeing promising indicators that suggest the potential for a turnaround. The success of our efforts motivates our continued collaboration with G-20 countries to lay the foundation for a durable and sustainable recovery.
We welcome you to check back at this blog site throughout the week to follow how these words are translated into action by the participants at the Pittsburgh Summit.
About the Author: Jeffrey Jamison serves in the U.S. Department of State’s Bureau of Economic, Energy and Business Affairs.
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Comments
Pittsburgh Summit Blogger Jeffrey Jamison writes:
@ James in Pennsylvania -- Thank you for your question. At the previous summits in Washington and London, leaders were very attentive to the need to address the effects of the crisis on all countries. The G-20, as its member countries account for about 85 percent of the global economy, is well positioned to take the necessary actions for global economic recovery, but it has done so in a way to include concerns of non-participating countries as well. The declarations of the previous summits -- Washington and London -- have made that clear, expressing not only concern but committing to specific actions for developing economies. I encourage you to check those out, as well as keeping your eyes peeled for what emerges from the next couple of days in Pittsburgh.
You might also be interested in the blog posting by my colleague Elliot Repko, who is serving as the Liaison Officer to the African Union delegation at the Pittsburgh Summit.
Posted on Thu Sep 24, 2009
James in Pennsylvania writes:
Are the discussions going to have some focus on the sustainable growth and economic viability of the unrepresented portions of our world? The countries in Africa and Asia that do not have a seat at the table but are more drastically affected by the crisis than the group of 20.
Posted on Wed Sep 23, 2009
Marie in Pennsylvania writes:
Post like this, explaining frequently used terminology are a really good idea.
University of Pittsburgh students are also covering the G20 and related media on a website called, Voices of 21. Check out what Pittsburgh public policy students are saying here:
http://www.gspia.pitt.edu/CurrentStudents/StudentOrganizations/Voicesof21/tabid/342/Default.aspx
Posted on Tue Sep 22, 2009
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