On Nov. 15-16, global leaders will meet in Bali, Indonesia for the 17th G20 summit.
This is the meeting of the heads of state of the world’s largest economies.
For the first time since the group was formed in 1999, the event will feature a world divided, because of the war in Ukraine, the renewed belligerence of North Korea, and the lack of cooperation among global leaders.
The meeting will mark the absence of Russian President Vladimir Putin and the first in-person meeting between Joe Biden and Chinese leader Xi Jinping.
The heads of state will address several issues, ranging from the conflict in Ukraine to the global economy, but — it's unlikely they will make substantial progress.
Since the war started, Russia has annexed four provinces of Ukraine, a Western ally.
Such westward expansion is a political defeat for the Biden administration, which vowed to prevent Russian expansionism.
Since Biden was elected, China has reduced imports of American goods, falling short of the trade agreement previously reached with the Trump administration.
India, the world’s largest democracy, has become the principal buyer of Russian oil and India’s leader Narendra Modi even attended the Shanghai Cooperation Summit in Uzbekistan with Putin, drifting away from the country's alignment with the West.
After Biden criticized Jair Bolsonaro, a leader that brought Brazil closer to American interests in the region, leftist leader Lula da Silva won the elections — again, so now Brazil will likely realign its policies towards American foes: Venezuela and Cuba.
In the past, the Lula administration opposed the creation of a Free Trade Area of the Americas, which was backed by the United States, and instead supported an alternative trade bloc: Mercosur.
Last month, Saudi Arabia, a strategic ally of the United States, snubbed Biden’s request not to cut oil production.
Subsequently, the Biden administration authorized the release of over 50 million barrels of oil from the National Petroleum Reserve, risking compromise of U.S. energy security, with the end result making the United Sates more dependent on foreign oil producers.
After the Biden administration poured trillions of dollars in the U.S. market without tightening the monetary policy, the U.S. economy plunged into stagflation, characterized by a mix of recession and high inflation, even though unemployment remained low as it rebounded following the COVID-19 pandemic.
In fact, U.S. GDP declined for the first two consecutive quarters of this year and inflation rose above 8% in the same period.
Consequently, the Federal Reserve aggressively increased interest rates in the past six months, forcing foreign central banks to quickly raise their interest rates too and risking sending the world economy into a global recession.
The current situation is reminiscent of Jimmy Carter’s administration; it took several years for Ronald Reagan to correct the errors of his predecessor.
Likewise, it will take years to restore peace and prosperity in such a divided world, and it's unlikely that this G20 will make substantial progress in the right direction.
Francesco Stipo is an author and expert in international affairs. He is the president of the Houston Energy Club, a member of the National Press Club in Washington D.C., a fellow of the World Academy of Art and Science, and recently joined the Bretton Woods Committee. Born in Italy, Dr. Stipo is a naturalized United States citizen. He holds a Ph.D. in International Law and a Masters Degree in Comparative Law from the University of Miami. Read Francesco Stipo's Reports — More Here.
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