The final communiqué will be released later today, but there appears to be little concrete action regarding the compensation curbs in the finance sector – an issue that riled the markets ahead of the summit. The members did agree to tighten rules regarding bank capital levels, but the overall focus of the meeting appears to have been on preserving the present status quo of stimulus spending rather than creating a massive regulatory overhaul of the global financial system.
The key takeaway of the two day meeting was the ascendance of G-20 over the G-7 as the predominant platform for setting global economic policy. Members agreed to allow emerging economies such as China and India to have more say in world affairs recognizing the new found economic power of the world’s two most populous economies.
