Progressive step
October 2, 2009
The most recent casualty of the global financial crisis is the economic organization widely blamed for causing the near-collapse of the world economy. The G8 has been retired from its role as caretaker of world finances, giving way to the G20, a younger, more inclusive organization that comprises nations from every region in the world. This historic transfer of power, which occurred Sept. 25 at a G20 summit in Pittsburgh, marks a significant — and welcomed — evolution in world relations. The G8, forged during the Cold War as an economic alliance of mostly rich, Western nations, had become an anachronism in a world in which emerging economies in Asia, Africa and South America have been playing a greater role in global affairs. As American President Barack Obama put it in his closing remarks in Pittsburgh: “We can no longer meet the challenges of the 21st century economy with 20th-century approaches.” That meant finding a place at the table for the likes of China, India, Indonesia, Brazil, Australia and South Korea.