According to Al Jazeera, the finance ministers of the G20 countries reached a consensus on Friday, July 18th regarding the importance of central bank independence from their national governments. This consensus comes in the wake of United States president Donald Trump’s open criticism of Jerome Powell, the head of America’s central bank, the Federal Reserve, over the slow pace of interest rate reductions in the fight against inflation.
In the group’s joint statement, of central importance to what impacts the uncertainty of global economic stability are ongoing wars, geopolitical and trade tensions, supply chain disruptions, high debt levels, and frequent natural disasters. The influence of Washington loomed large over the summit, as the United States is set to take over the G20 in December from South Africa. Given the Trump administration’s aggressive, tariff-centric trade policies, the G20 could be redirected in 2026 away from the “Washington Consensus” of the 1990s toward a return to a geopolitical mercantilist world where trade is one aspect of a state’s security strategy. This could lead to the grouping turning away from the concerns of poorer countries and climate-focused policies.
According to scholars Bill Ashcroft, Gareth Griffiths, and Helen Tiffin, the Washington Consensus of the ‘90s embedded neoliberal principles into the global economic architecture, which served “to both obfuscate and cement the power of the West” (Ashcroft et al., 2013, 270). The resulting proposal of a one size fits all economic framework for countries as diverse as Peru, Kazakhstan, and Indonesia has led to what has been described as “a ‘democratic recession’” ( (Monbiot & Hutchison, 2024, 53).
This predicament is a result of the fraying international order. Many have voiced hope that the G20 could replace the much smaller and Western-centric G7 as the premier interstate economic forum, though a lack of formalized rules and a more diverse membership has meant consensus has been a limitation. The G20 consists of both China and the United States, and the decline in their relationship will only further erode the possibilities of the grouping. The ones who truly miss out by this will be the poor and developing nations, especially in Africa, which is expected to see the lionshare of humanity’s population growth this century.
For far too long financial stability and economic growth have been at the mercy of geopolitical competition. The poorest have suffered the most: they have been the ones drafted to fight in imperialist wars as well as whose resources are siphoned away to feed their nations’ war machines. Humanity needs to do better for the generations to come, to forever sever the link between conquest and prosperity. Our Survival Bill outlines five proposals for making such a future one we can realize: lift every human out of poverty; raise the funds to stop poverty; resolve debt crises; shut down tax havens; and create a global market for online jobs.
A global safety net centered on a basic income, made available to the most vulnerable but eventually extended to all, along with a guaranteed job scheme for non-vulnerable people in the absence of a true universal income comprises our plan for lifting each person out of poverty and keeping them out for good. These will be aided by a wealth tax on the hyper-rich which will go toward the creation and maintenance of the global safety net. Austerity measures are too often foisted on countries embroiled in a debt crisis, and again, it is the most vulnerable who have it the worst. We must establish a legal framework whereby debt crises can be settled in an orderly and equitable way where the poor are not fed to the wolves. It should go without saying, but stronger rules must be devised and enforced regarding tax evasion and the minimum corporate tax should be increased. Lastly, the Covid-19 Pandemic forced so many into remote work, but this does not mean remote workers were not and are not still subject to exploitation. Globalizing the online jobs market will allow for more transparency as regards unethical business practices, greater pay and working conditions, and economic boosts to national economies. Such an infrastructure should be built not just for remote white collar workers, but all workers around the world.
This is how we at Atlas are fighting to end poverty. We hope you will read this and consider joining the over 25,000 supporters standing alongside us.
By Trent Trepanier
Photo: Reuters